Ultimately, the right entity choice depends on the business’s goals, profit model, ownership structure, and tolerance for complexity. In 2025, blended approaches are becoming common, such as forming ...

Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author. One of the benefits of being an S Corporation owner is having the ability to significantly ...

If you’re self-employed, one way to help avoid higher Social Security and Medicare taxes is to organize your business as an S-corporation. If you’re self-employed, you’ll usually have to pay higher ...

CPAs can help their clients determine what is a reasonable salary to pay shareholder employees (SEs) of S corporations, thus satisfying an IRS priority to collect proper amounts of employment taxes.

Business entity type and tax structure impact your organization’s finance and compliance requirements. Two popular choices are limited liability companies (LLCs) and S-corps. Although the arrangements ...

An S corp is an organization that has chosen to pass its tax burden to its shareholders, rather than report income, losses, deductions and credits directly to the Internal Revenue Service (IRS).

In the S corporation arena, tax advisors generally do not focus much attention on unreasonable compensation. As we delve into the issue in this Part VII of my multi-part series on Subchapter S, it ...

To avoid federal employment taxes, S corporations may be tempted to understate the wages and salaries of employee/shareholders. The IRS however, may recharacterize what S corporations classify as ...

If you’re self-employed, you’ll usually have to pay higher Social Security and Medicare taxes, collectively known as self-employment taxes, than if you were an employee of a company. One way to help ...