Navigating Business Tax Structures: Finding Your Fit

Understanding your business tax structure is crucial for managing your tax obligations effectively. Here's an overview of the four common tax elections:

1. C-Corporation (C-Corp):

  • Default tax status for corporations unless eligible for S-Corp status.

  • Corporate income is taxed at a flat rate of 21%.

2. S-Corporation (S-Corp):

  • Income is "flowed-through" to shareholders and taxed at the personal level.

  • Offers potential tax advantages for certain businesses.

3. Partnership:

  • Pass-through entity, meaning income passes through to individual partners and is taxed at their personal tax rates.

  • Simplified paperwork and flexibility.

4. Sole Proprietorship:

  • The simplest form, where the business and owner are considered one for tax purposes.

  • Income is reported on the owner's personal tax return.

Special Note for LLCs:

  • Limited Liability Companies (LLCs) have flexibility in choosing their tax election, with exceptions.

  • Single-owner LLCs can elect to be treated as a sole proprietorship, simplifying their tax structure.

Selecting the right tax structure is critical as it impacts your tax liability and the paperwork you'll need to file. At CCL Tax & Accounting, Inc., we provide expert guidance to help you choose the optimal tax structure for your business, ensuring that you're well-positioned for financial success. Your business's financial well-being is our top priority.

Practicing Jurisdiction

New York
New Jersey
Pennsylvania

Price

Starting at $450.00