Taxes

Delaware C corps are a popular choice for some companies due to their ability to attract investors. Startups in particular can benefit from a C corp tax designation, but it’s understandable to have questions about how, exactly, this works. Here’s what you need to know. How the Delaware C Corp Can Help Startups While every […]

Becoming an LLC is an easy and inexpensive way to protect yourself from personal liability for business obligations. It’s definitely worth considering if you have your own business—even if that business is you.

Do LLCs Pay Tax? LLCs conducting business operations will likely incur state and federal tax obligations along the way. The Internal Revenue Service treats LLCs as “disregarded entities” for federal tax purposes. These are also known as “pass-through” entities. The profits and losses pass-through the business to its sole member and are reflected on the […]

Most businesses end up cutting into profits simply by not taking advantage of the rules the IRS has laid out for them. The most susceptible to this common downfall is the sole proprietor or single-member LLC. It’s possible to save on single member LLC taxes—you just need to know the right steps to take. What is […]

Default Tax Treatment of LLCs: Easy, But Not Usually Most Favorable For example, if an LLC begins with one member it will be taxed as a sole proprietorship, meaning all income and expenses are reported on Schedule C of the individual’s tax return. This is known as a disregarded entity for tax purposes because the […]