Brett's blog

As addressed in my last post, profits of an S Corporation is not considered self-employed, meaning that the profits are not treated as self-employment income. Owners of S Corporations are required to pay themselves a reasonable salary like every other employee.

Business owners have the choice between several incarnations when deciding on the type of business they plan to operate. The choices often come down to decisions between basic liability and protecting your personal resources. 

Above all, tax considerations are the most common reason why small business owners choose to incorporate. Let’s talk about S corporations.

Last week, I focused on the potential liability related to the choice of entity chosen to operate a small business. This week I’ll review how each business structure is taxed and how that choice will impact whether to remain a sole proprietorship, or if the long-term interests of the company are better served by the creation of some type of corporation.

The most common question I hear from small business owners and entrepreneurs seems to be: What type of business structure makes sense for my new enterprise? As a CPA and trusted advisor to many business owners, my answer is always the same--it depends.  

It sounds wonderful, at first.  You’ll be the boss. You make the rules. You get to work when you want to.  Your small business can be part of the economic recovery that will save the nation.  The sky is the limit.