You know you need one, why should you do it right now?
Here you’ll find your guide to answering all your questions.
Congratulations, you have a business! Or you are thinking about having a business, or you get a 1099 as an independent contractor and didn’t realize the IRS classifies you as a business! Having a business is almost like winning the lottery. All sorts of people you didn’t know were you friends show up. But in this case, instead of looking for free handouts, they are eager to give you the advice you need to succeed. You should make your product this way! Don’t be like that company! You need a good logo! Make sure you are in a prime location! Don’t forget your business plan should include blah blah blah! Inevitably, one of them will tell you how to setup your business. They are so confident in their recommendation because their brother’s uncle’s nephew’s cousin works at a law firm or is in an accounting program and they shared their wisdom. One size fits all doesn’t work for swimwear and it certainly doesn’t work for your own entity setup.
At this time of year, we are in our tax planning phase. Meeting with our clients to go over their current year and determine how everything is shaking out. This is where we capitalize on their tax strategies and deductions. We help them plan their situation out proactively instead of the usual (not recommended) reactive way. This gives them control of their circumstances and able to enjoy life without Uncle Sam always lingering in the background. It’s a much better way of life to know what to expect for.
So as you may be thinking about your current year, all the hard work you’ve put in and the money you’ve made, now is your last chance to determine how to maximize your earnings. That is through setting up the right entity structure before the end of the year. If you don’t, then you can’t go back, all that money that could have been saved in taxes, guess what? Cha-ching IRS. Which sucks because more money for them means, stupid spending on stupid things. If you do want to see the crap they spend your money on, Watch This: https://www.youtube.com/watch?v=ZctTJ_Exmks&list=PL6VytvvzFQqmUClWKaZjDahrh1lu3zX2M
The good news is, if you set it up before the end of the year, the entire year can all be covered under the entity.
When you have your entity setup, you can now qualify for so many tax advantages.
So when you’re making your Christmas list this year, you might want to have Santa act fast about getting you the right business! If you don’t want to wait for the chubby fella then we have a quick and easy solution. In a moment at the end of the post, see our recent entity guide to choose which structure is right for your situation.
We want to share with you the basics of the most common choices a business owner has when selecting an entity type. As a refresher, the word entity will be used often. It means “something that exists in itself, a thing with distinct and independent existence.” In simple terms, it is referring to the legal structure you have for your business. Sole Proprietor, single-member LLC, multi-member LLC, partnership, S Corporation, C Corporation, Not-For-Profit, series LLC, etc. We aren’t going to cover every entity type. If you have questions about the legal side of your business and the entity you should or shouldn’t have, contact Shumway, Van & Hansen. We have asked them to cover the legal issues relating to each entity we talk about.
We will now discuss the following entities from a tax perspective (provided by Incite Tax) and from a legal perspective (provided by Shumway, Van & Hansen).
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Sole Proprietor
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Single Member LLC
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Multi Member LLC
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Series LLC
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S Corporation
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C Corporation
Decide Which Entity Will Save You Thousands Each Year
Hurry, before you’re too late! Click here for your FREE guide.
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