There is a lot of confusion among small business owners when deciding on their entity classification and the tax savings involved. It is the first discussion I have with most business clients. It takes time to get pertinent information out so I decided it would be a good idea to write down.
There are five business entity choices, but it really is only three since two are default choices: sole proprietorship, partnership, limited liability company (and its close cousin, the limited liability partnership), regular corporation (also called a C corporation) and the S corporation. You default to a sole proprietorship if you are a one-person business or a partnership when two or more owners are involved.Read More
Will Durant, the great 20th Century American philosopher and historian wrote in the Preface of his Story of Civilization: The Age of Napoleon:
“By the middle of the twentieth century,” says the Encyclopaedia Britannica (XVI, 10a), “the literature on Napoleon already numbered more than 100,000 volumes.” Why add to the heap? We offer no better reason than to say the Reaper repeatedly overlooked us, and left us to passive living and passive reading…
And so it is with your favorite accountant. According to a “personal finance blog” Google search there are around 96,100,000 results. Surely a few of the entries are not personal finance blogs, but many are. So why add to the heap? Will Durant was 90 years old when he wrote those words; I am 51 as I contemplate them.Read More