Establish your Entity
Forming your entity is one of the first steps you will need to take when starting your practice. It is a very important step and we advise all of our clients to do some research before making any decisions. The type of entity you decide to form will largely depend on the current and future goals of your organization.
Below are the three most commonly used entity structures, please click on these links to learn more about each of them.
Below are the three most commonly used entity structures, please click on these links to learn more about each of them.
S Corporation Overview
Advantages of a S Corporation:
An S Corporation is a standard corporation that has elected a special tax status with the Internal Revenue Service (IRS). The formation requirements for an S Corporation are the same as those for a C Corporation. Formation documents must be filed with the appropriate state agency and the necessary state filing fees paid
One reason so many small business owners choose to elect S Corporation status with the IRS is that the S Corporation’s special tax status eliminates the possibility of double taxation common to C Corporations. With S Corporations, a corporate income tax return is filed but no tax is paid at the entity level. Instead, the profits or losses of the corporation are “passed-through” to the shareholders and are reported on their individual tax returns
-S Corporations avoid the possibility of double taxation on profits.
-Shareholders of an S Corporation are typically not personally responsible for the debts and liabilities of the business.
-Ownership of an S Corporation is easily transferable through the sale of stock.
-S Corporations have unlimited life extending beyond the illness or death of the owners.
-Additional capital can be raised by selling shares of the S Corporation's stock.
-Potential customers may perceive an S Corporation as a more professional entity than a sole proprietorship or partnership.
-S Corporations are generally audited less frequently than sole proprietorships.
-Certain S Corporation business expenses may be tax-deductible.
-S Corporations can result in self-employment tax savings.
-S Corporations may provide a number of income and tax savings.
-Shareholders of an S Corporation are typically not personally responsible for the debts and liabilities of the business.
-Ownership of an S Corporation is easily transferable through the sale of stock.
-S Corporations have unlimited life extending beyond the illness or death of the owners.
-Additional capital can be raised by selling shares of the S Corporation's stock.
-Potential customers may perceive an S Corporation as a more professional entity than a sole proprietorship or partnership.
-S Corporations are generally audited less frequently than sole proprietorships.
-Certain S Corporation business expenses may be tax-deductible.
-S Corporations can result in self-employment tax savings.
-S Corporations may provide a number of income and tax savings.
