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Although tax season may seem barely upon us, the deadline for filing will approach quickly and businesses must be prepared. Members of a limited liability company face a slightly different tax requirement than other corporations, as the IRS requires these types of businesses to pay self-employment taxes dependent upon a company's tax structure.
The IRS recognizes an LLC as a state-chartered business entity. LLCs are taxed either as a sole proprietorship, a partnership or a corporation. One loophole allowed by the IRS is the ability for an LLC to file as an S corporation. This lets shareholders pay self-employment taxes on only the salary that they take. However, if you are a sole proprietorship or file as a partnership, then you will be required to pay full self-employment taxes. You can expect to be taxed as a sole proprietorship if you are the only member of your LLC.
To prep for tax season, businesses ought to first consult with a certified public accountant prior to filing. A CPA can properly guide a business and help direct them on what deductions their company is eligible for. Although free programs such as TurboTax may seem like a viable option, but, particularly for small businesses, it can lead to trouble.
This article is brought to you by Vcorp Services – Vcorp offers executives, attorneys, accountants, and entrepreneurs an extensive suite of services including entity formations, state filings, document retrieval, tax-exempt filings, UCC filings and searches, 501c3 filings and more. www.vcorpservices.com
The IRS recognizes an LLC as a state-chartered business entity. LLCs are taxed either as a sole proprietorship, a partnership or a corporation. One loophole allowed by the IRS is the ability for an LLC to file as an S corporation. This lets shareholders pay self-employment taxes on only the salary that they take. However, if you are a sole proprietorship or file as a partnership, then you will be required to pay full self-employment taxes. You can expect to be taxed as a sole proprietorship if you are the only member of your LLC.
To prep for tax season, businesses ought to first consult with a certified public accountant prior to filing. A CPA can properly guide a business and help direct them on what deductions their company is eligible for. Although free programs such as TurboTax may seem like a viable option, but, particularly for small businesses, it can lead to trouble.
This article is brought to you by Vcorp Services – Vcorp offers executives, attorneys, accountants, and entrepreneurs an extensive suite of services including entity formations, state filings, document retrieval, tax-exempt filings, UCC filings and searches, 501c3 filings and more. www.vcorpservices.com
About Vcorp Services LLC
Vcorp Services assists in the creation of new businesses and helps maintain existing businesses in
all 50 states. Quick, accurate and at the lowest rates, Vcorp's knowledgeable and experienced staff
has helped form thousands of new businesses including: LLCs, S-Corporations, C-Corporations,
Partnerships, Non-Profits and Professional Corporations. Vcorp works with entrepreneurs, legal and
tax professionals, as well as real estate experts to set up and maintain businesses across the
country. Vcorp also specializes in helping small businesses to get started, grow and remain in
compliance with federal and state regulations.