Choosing the right entity can make all the difference in your business success! This crucial decision can be confusing to navigate for business owners at all stages. In this episode, we break down the key differences (and benefits) between LLCs and S Corps. Danielle and Kelsey from KSA Tax Partners explain the responsibilities and tax implications of each entity, including how to pay yourself, manage your books, and stay compliant with IRS guidelines. Tune in to hear their tips on reasonable compensation, putting yourself on payroll, and avoiding common financial mistakes!
Key Takeaways:
- Discover the key differences between LLCs and S Corps, and how each affects your tax planning, legal responsibilities, and financial health.
- Get insights into reasonable compensation, owner's draws, and how to stay compliant with IRS guidelines.
- Find out what to do if your business can’t afford to pay you reasonable compensation.
- Understand how Kickstart Accounting Inc.'s guidance can help you make informed decisions for your business.
Topics discussed:
Differences between LLCs and S Corps (1:01)
How to pay yourself as an LLC (2:10)
Paying taxes as an LLC (3:31)
S Corp payroll requirements (5:58)
Bookkeeping for S Corps (9:15)
Reasonable compensation and owner’s draws guidelines (10:36)
Kickstart Accounting Inc.’s new S Corp recommendations (14:28)
What if you can’t pay yourself reasonable compensation? (16:35)
Tax dos and don’ts for S Corps (19:25)
How to leverage mid-year check-ins for tax planning (21:38)
Book a call with KSA Tax Partners:
Collaborative Tax Consultant Service - KSA Tax Partners
Book a Call with Kickstart Accounting, Inc.:
https://kickstartaccountinginc.com/book
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