The two common goals shared by most entrepreneurs are the taxation of
business profits on the individual tax return and the protection of
personal assets from claims against the business (limiting liability).
In some situations, the best way to do this is through company
incorporation into what is called the S-corporation. There is also the
option of forming an LLC, or limited liability company.
In the Rancho Cucamonga, CA office of Whyte & Associates, we help our clients identify the ideal time for incorporating as well as the type of incorporation that may best suit their needs.
“S-corporation” identifies tax status in which income taxes
are paid similarly to partnership or sole proprietorship while you also
get the benefit of limited liability. The S-corporation model passes all
profits through to owners, who then report income on personal tax
returns. This type of incorporation does not require income tax to be
paid directly from the corporation. It does require the filing of an
informational tax return in the event that there is more than one owner.
This tax return will report the portion of income allotted to each
There are several reasons that S-Corp status may be considered.
The good news is that you can elect for S-Corp status at any time. The team at Whyte & Associates, Inc. provides you with the detailed information you need to determine if incorporating is right for you.
We are happy to discuss your business needs in a private consultation. Call (909) 575-0080.