For many small business owners, the line between personal tax obligations and business tax obligations is not always clear. Depending on the type of business structure you choose, your business taxes will be filed with your personal return or may need to be filed separately. And that’s just the tip of the iceberg. There are many more tax-related financial decisions that need to be made when setting up a new business.
If you’ve always dreamed of starting your own business but are worried about tax matters, you should know that help is available. At the Law Offices of Connie Yi, P.C., you can work with an experienced tax law attorney who is also a certified public accountant.
Our firm regularly works with individuals who are starting a business, buying or selling a business, or looking to pass on a business to a family member. No matter what your financial and tax questions may be, our firm can help.
Consider the business structure scenarios above as just one of many examples of the decisions business owners face. The type of business structure you choose will determine if you report business taxes on your personal return or in a separate return.
Use your personal return if your business is:
- A sole proprietorship
- A partnership
- A limited liability corporation (LLC)
You must file a separate return if your business is a:
- C corporation
- S corporation
Which filing scenario is better? It depends on your situation. Filing a separate business tax return can be more complex and create extra work. However, corporate structures typically make it easier to shield your personal finances from the negative effects of any business debt.
When you work with the Law Offices of Connie Yi, P.C., you can expect knowledgeable tax and financial advice for yourself and your business. To learn more, feel free to visit our website.