similar to a corporation, owners have limited personal liability for the debts and actions of the LLC. Other features of LLCs are typically more like a partnership, providing management flexibility and the benefit of pass-through taxation.
The Tax Cuts and Jobs Act led to substantial tax savings for various business types, particularly those structured as pass-through entities like LLCs and S-Corps. While the tax reform provided benefits to many, independent contractors might not find the system as advantageous as other business ty...
Ryan creates transaction tax savings opportunities by relentlessly searching out smart, innovative ways to cut through dense codes, rulings, records, and the other tax minutiae that comes with them. We commit every day to sifting through, drilling down, and peeling back the intricacies of asset ...
Allocating Losses and Deductions Under §704(b)– this module is part of their 2024 Fundamentals of Flow-Through® program Either of these sessions will give you a good “taste” of why so many professionals who handle partnership, LLC and S corporation tax and business planning attend Tax ...
S-corporation taxes An S corporation is a “pass-through” entity. This means profits and losses from the corporation are reported on the tax returns of individual shareholders. The shareholders are also responsible for paying the tax, rather than the corporation. The S corporation still must fi...
LLCs are classified as “pass-through” entities for tax reasons, meaning the business profits and losses will flow through to the personal tax return of each member. An LLC can also elect to be taxed as an S-Corporation or a C-Corporation. To be taxed as an S-Corporation, the LLC mu...
If the startups organize as an LLC, there is no entity-level tax liability. Rather, any profit or loss (Yi) is deemed to be passed through to the investors for taxation, though we assume no distribution actually occurs. This has two effects on the investor-level payoffs. First, in the...
This indirect federal sales tax–called a value-added tax (VAT) in some countries–is charged on certain goods and services. The sales price to the customer includes the GST, and the business or seller forwards the tax payment to the government. The GST rate usually is uniform throughout th...
When an S Corp’s earnings fall short, any profits made by the corporation are passed through to each owner’s tax return. This loss may reduce the amount of any other source of income. The LLC business structure offers the unique ability to be taxed as an LLC, C Corporation, or S Co...
Single-member LLCs start out being taxed as sole proprietorships. Businesses with this tax status are also called “pass-through entities”. This is because the LLC does not file its own tax return. The business’s taxable income is “passed-through” to the sole member and gets reported ...