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| Business Owners |
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Dear Business Owner, As you may know, many tax advantages are available by running your own business.
Generally, the incorporation of your business as either a corporation or limited liability company (LLC) is a good idea to keep your personal assets safe and separate from liabilities of your business operations.
What is not as well known is the tax advantages that can be obtained from electing a tax status known as a small business corporation (S-Corporation), which can be done regardless of whether you are incorporated as a corporation, or an LLC!
For example, an S-Corporation does not generally pay corporate income taxes as a regular corporation would; therefore, there is no corporate taxation of the income the corporation makes, which would be taxed again when you personally take income from the business. This is known as double taxation.
With an S-Corporation, you will only be taxed on your business income once, on your personal income tax return!
In addition, you may be able to pay yourself in a variety of ways besides just drawing a reasonable salary from your business. It is possible to pay rent to yourself for any property used by the business, and to pay yourself dividends out of profits, neither of which are subject to self-employment (FICA) taxes.
Some of the most common questions new business owners have are how to pay themselves properly, and what are legitimate business expenses that can be claimed in order to minimize their taxes.
We welcome you to schedule with us a FREE, no obligation initial consultation to answer any questions you may have regarding your business taxes, as well as any other tax questions you may have.
We look forward to hearing from you.
We are a full service tax preparation and advisory firm with convenient offices in Capitol Hill, Washington, DC, and Rockville, MD, serving the entire DC metro area.
Feel free to contact us. Office Location: 810 L Street S.E. (upper level) Washington, D.C. 20003
Via Phone: 202.543.5555 Via Fax: 202.547.2105
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