Do you need the services of a small business CPA to help your business expand and become more profitable? Established in 1965, Pisenti & Brinker can help you gain a deeper understanding of how the choices you make now will affect you in the future. For example, many businesses begin as a sole proprietorship. They then realize they have outgrown their original structure. There are many factors in deciding what type of entity makes sense. The potential tax burden is one of the most important factors for small businesses.
As a small business CPA specializing in S-corps and Limited Liability Companies (LLCs), we can help you determine your best options.
How does an S-corp differ from an LLC? What are the pros and cons? An S-corp is not a business structure; it indicates how a business will be taxed. An LLC legally separates businesses from its owners. LLCs can be easier to manage with fewer reporting requirements. Income in an LLC flows through a personal return and avoids double taxation. An LLC taxed as an S-corp allows the owner’s salary to be a business expense. The owner then reports their salary and business profit on their personal return.
There are many similarities between LLCs and S-corps. These include limited tax liability protection, separate entities, and pass-through taxation. But there are many differences. For example, an S-corp often has more formalities, such as adopting bylaws and issuing stock. Of course, these are just a few of the many factors. To make great decisions, you need professionals who can look at every small detail while holding a view of the bigger picture.
We will take the time to become fully acquainted with your needs. We partner with you to develop a deeper understanding of your current situation, goals, and objectives. Communication is the key. We take the time to hear you out. That’s how we remain committed to building long-term, solid relationships. Many of our clients have been with us for decades!