Another distinction lies in flexibility. LLCs allow owners to reinvest profits or distribute income in a variety of ways, while S-Corps must distribute earnings based strictly on ownership percentage.

LLCs changing from partnership tax treatment to corporation or vice-versa may encounter issues including gain recognition.

With only a couple of months left in 2024, many business owners are preparing their year-end taxes. For some, this may include refining their financial structures, specifically working to minimize tax ...

Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author. If you’re looking to switch your business from an LLC to an S corporation, the first thing ...

As clients' businesses evolve, it sometimes makes sense for them to change how their companies are taxed. And I expect that occasionally you've encountered clients who made a change at one point but ...

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.

IRC section 1363(d) generally requires a C corporation that elects to become an S corporation to include a “Lifo recapture amount” in its gross income. The amount is the difference between the ...