Question: I have been in business for four years operating as a sole proprietorship filing on Schedule C of Form 1040. I have been debating switching to an S corporation. Can you please compare ...

The choice between a Limited Liability Company (LLC), S-Corporation (S-Corp), or Sole Proprietorship can significantly impact your business's tax obligations, liability, and operational flexibility.

The structure has been delivering tax savings to advisory practices and other professional services firms for decades. But ...

Cons: A primary disadvantage of operating as an S corporation relates to estate tax rules. Upon the death of the owner of a sole proprietorship, the inventory, land and depreciable assets of the ...

The amounts paid or reimbursed are treated as guaranteed payments to the partner or wages to the S corporation shareholder. The sole proprietor, however, must pay the Medicare premiums directly.