In this episode, Dr. Friday highlights the tax differences between various business entities, such as LLCs, partnerships, and corporations. While popular choices like LLCs and S-Corps can offer benefits, they also come with specific tax responsibilities, especially for corporations requiring payroll rather than distributions. She advises that selecting the right structure depends on your business type and goals, underscoring the importance of tailored tax planning. For expert guidance on entity selection and tax strategy, reach out to Dr. Friday.
Transcript: G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Choosing the right entity when starting a new business. I’m not an attorney, so I’m not going to give you legal advice. What I’m going to tell you is there are different tax advantages to being different, and some of it may depend on what type of business you’re running. For example, I know everyone loves LLCs, everyone loves partnerships, mostly corporations, but some of those have a higher cost. Corporations require payroll, for example; you can’t just take a distribution to avoid the self-employment tax, which people will tell you is always why you should go with the Sub S. Tax law says don’t do it, or you’ll pay more in taxes. You need help? Call me at 367-0819.
You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.