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Business Taxes…Simplified!

At Atlas Accounting, we provide our business clients with the most up-to-date tax services. We strive to keep current on new tax laws and legislation, which allows our team to identify key tax planning opportunities that minimize both your current and future tax liabilities. Additionally, Atlas Accounting can help you set up and incorporate your new business to ensure that it is structured in the most tax effective manner and is compliant with the plethora of regulations that exist today. 

“How do I start my own business?” “Should I incorporate my business or operate it as a sole proprietorship?” “Is an S corp better than a C corp?”  These are some of the questions that we get asked on a constant basis. We’ve created a basic outline of the advantages and disadvantages of each business structure below: 

Types of Business Structures

C Corporation

ADVANTAGES
  • PROTECTION FROM PERSONAL LIABILITY
  • EASY TO RAISE CAPITAL
  • SEEN AS AN ESTABLISHED ENTITY
DISADVANTAGES
  • CAN BE COSTLY TO FORM
  • MAY HAVE EXPOSURE TO DOUBLE TAXATION
  • EXTENSIVE PAPERWORK REQUIREMENTS

S Corporation

ADVANTAGES
  • PROTECTION FROM PERSONAL LIABILITY
  • PROFITS PASS THROUGH TO OWNERS PERSONAL TAX RETURNS
  • GENERALLY EASIER TO MANAGE FOR SMALL BUSINESSES
DISADVANTAGES
  • ONLY SOME COMPANIES ELIGIBLE
  • MORE LIMITS ON ISSUING SHARES

Limited Liability Company (LLC)

ADVANTAGES
  • PROTECTION FROM PERSONAL LIABILITY
  • PROTECTION FROM PERSONAL LIABILITY
  • PROFITS AND RESPONSIBILITIES CAN BE EASILY DIVIDED AMONG MEMBERS
DISADVANTAGES
  • NOT APPROPRIATE IF YOU WANT TO RAISE INVESTOR MONEY
  • ENTIRE INCOME OF LLC MEMBERS ARE SUBJECT TO SELF-EMPLOYMENT TAX CONTRIBUTIONS

Partnership (LLP's, etc)

ADVANTAGES
  • CAN BE SETUP FOR MULTI-OWNER OR SINGLE OWNER BUSINESS WHICH REQUIRES LITTLE OR NO PAPERWORK
  • BUSINESS PROFITS PASS THROUGH TO OWNERS’ PERSONAL TAX RETURNS
DISADVANTAGES
  • NO SEPARATION BETWEEN BUSINESS AND PERSONAL LIABILITY
  • POOR VEHICLE FOR RAISING MONEY FROM INVESTORS
As you can see from the table, careful consideration and good judgment must be used before selecting the appropriate business structure to fit your small business’s needs. Atlas Accounting can guide you through the process of selecting and forming business structure in a quick and painless manner. With the appropriate documentation in order, we can typically submit the necessary filings in the same day!
 
Please see below for a collection of helpful documentation for tax planning and organizing. A member of our team may request that you complete a portion of these tax organizers before consulting with one of our representatives:
Let us audit your last year taxes today!

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Contact

(888) 563-0947

Services@atlasaccounting.com

1337 Howe Ave #265, Sacramento, CA 95825

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