Why you should switch to S Corp

Why you should switch to S Corp

When starting a business, there are two ways you can become official. You can incorporate as a corporation or you can form an LLC. Many people usually go with the LLC . Sometimes because they haven’t mapped out their business goals, sometimes because LLC is easier to maintain, they just want to get started and be official or someone simply told them to get an LLC.

There are different entity structures you can pick based off the way you choose to run your business. However, an LLC is the most common business structure. What many have found is, once they start making a nice profit in their business, the taxes owed become rather much.

The best way to avoid taxes

The best way to avoid taxes

You can’t entirely avoid taxes but you can reduce your tax liability. The best practice for reducing your tax liabilities is to manage your business expenses. You pay a 15.3% self employment tax on the profit that you make in your business. So your income less your expenses equals your net profit. Which means the more you write off ( business expense ) the less you pay in taxes. So here are a couple things you can do as a small business owner to reduce your tax return.

How to work well with an Accountant

How to work well with an Accountant

I want to provide 5 easy ways to get along with your accountant. Rather you have one yet or not, this will still benefit you. A business owner and accountant are entering into a business partnership. This will be one of the most important business relationship you commit to. So it is very important that the relationship is set up successfully. So here are a few things you, the business owner can do to make sure this happens.

1.) Have a separate business account