13. Business Entity Elections - Molen & Associates

Stay Ahead of Law Changes & Protect Yourself Against Being Audited: Corporate Transparency Act and Reasonable Compensation

13. Business Entity Elections

Welcome to Questioning Your Cents where you can get real-world, pragmatic tax & financial advice for business owners, entrepreneurs and independent contractors.

We are your hosts, Kevin Molen and Charles Steinmetz. Our job is to help educate you on how to manage your money and save on taxes. In this episode, we discuss the different types of business entities.

 

Important Points:

Different Types of Entities

Three Options as a Sole Proprietor:

  1. Do Nothing
  2. DBA
  3. LLC

Pass Through Entities:

  1. Partnership
  2. S Corporation

C Corporation

 

Why do you set up an LLC?

Pros and Cons of an LLC

Tax vs Legal structures

What is a pass through entity?

Why are partnership agreements important?

When is it beneficial to become an S-Corp?

 

Comfort Zone:

  1. I Inherited a home and am now selling it. How is this treated for tax purposes?
  2. Why is my tax refund being delayed?

 

Videos referenced:

Stimulus Checks Round 3 – https://molentax.com/stimulus-checks-round-3/

Child Tax Credit Changes – https://molentax.com/american-rescue-plan-changes-to-child-tax-credit/

Texas Federal Disaster – https://molentax.com/texas-declared-federal-disaster-what-does-this-mean-for-my-taxes/

Unemployment Taxation – https://molentax.com/american-rescue-plan-unemployment-taxation/

 

Contact us:

info@molentax.com

281-440-6279

 

Find us on social media:

https://www.facebook.com/molentax

https://www.instagram.com/molen.tax/

https://www.youtube.com/channel/UCTHFFst-BRli8M_aTyXhAuw

https://www.linkedin.com/company/molen-&-associates

https://twitter.com/molentax

https://www.molentax.com

http://questioningyourcents.com

 

Check out this episode!

The Molen & Associates Difference

Mike Forsyth

“Super helpful and timely. This is our first year with them and we look forward to trusting them with our taxes and business books for years to come.”

Caitlin Daulong

“Molen & Associates is amazing! They run an incredibly streamlined process, which makes filing taxes a breeze. So impressed with their attention to detail, organization, and swift execution every year. Cannot recommend them enough!”

Sy Sahrai

“I’ve been with Mr. Molen’s company for few years and I felt treated like family respect and dignity. They are caring, professional and honest, which hard to find these days. Love working with them.”

Compensation and K-1 Reporting for Partnership Owners

As a business owner of a partnership, understanding how your compensation and earnings are reported and taxed is crucial for managing your finances and staying compliant with IRS regulations. Unlike S-Corporations (S-Corps), partnerships cannot pay their owners a W-2...

W-2 Salary vs. Distributions vs. K-1 for S-Corp Owners

W-2 Salary vs. Distributions vs. K-1 for S-Corp Owners As an S-Corporation (S-Corp) owner, understanding the distinctions between W-2 wages, distributions, and K-1 profits is essential for managing your tax obligations and business finances. In this article, we will...

Non-Compete Law Changes in 2024: What Employers and Workers Need to Know

Non-compete agreements have long been a standard tool for employers seeking to protect sensitive business information and retain talent, but their future is now uncertain. In 2024, sweeping changes to non-compete agreements are expected, driven by the Federal Trade...

FLSA Changes in 2024: What Employers and Employees Need to Know

The Fair Labor Standards Act (FLSA) governs minimum wage, overtime pay, and working hours, ensuring that employees across the U.S. are treated fairly. In 2024, significant changes to the FLSA overtime rules will take effect, directly impacting both employers and...

What Tax Documents Should I Save, and How Long Should I Save Them?

What Tax Documents Should I Save, and How Long Should I Save Them? Maintaining proper tax records is crucial for both individuals and businesses. Not only does it ensure compliance with tax laws, but it also provides a safeguard in case of audits or disputes. This...

Underpayment Penalties and How to Avoid Them

Underpayment Penalties and How to Avoid Them Underpayment penalties can be a significant concern for taxpayers, both individuals and corporations. These penalties are imposed when taxpayers fail to pay enough tax throughout the year, either through withholding or...

Choosing the Right Filing Status for Your Taxes: A Comprehensive Guide

Choosing the Right Filing Status for Your Taxes: A Comprehensive Guide When it comes to filing your taxes, one of the most crucial decisions you'll make is selecting the appropriate filing status. Your filing status affects your filing requirements, standard...

Why Corporations and S-Corporations Cannot Deduct Shareholder Expenses Directly on the Corporate Return

Why Corporations and S-Corporations Cannot Deduct Shareholder Expenses Directly on the Corporate Return   When it comes to managing business expenses, corporations and S-corporations face specific rules and limitations, particularly concerning the expenses...

Understanding Storm-Related Tax Implications for Texas Tax Filers: Hurricane Beryl and the May Derecho

  As Texans, we know all too well the impact that severe weather can have on our lives and communities. This year, we've faced two significant challenges: Hurricane Beryl and the May derecho that swept through the Houston area. In the wake of these natural...

Roth vs Traditional IRA: A Comprehensive Guide

When planning for retirement, choosing the right Individual Retirement Account (IRA) can significantly impact your financial future. The two most popular types of IRAs are the Roth IRA and the Traditional IRA. Each has its unique benefits and drawbacks, and...

Request an Appointment Today

2 + 1 =

Call us at

Pin It on Pinterest

Share This