BETTER BUSINESS: Avoid Unnecessary Business Tax
Consider this scenario.
Jane, A local business owner starts her company “123 Company ” in 2010 from the ground up and establishes it as a LLC. Business is booming as she has been running successfully for 5 years. Initially the taxes upon establishing the business were reasonable. however, a year ago , Jane and her husband of 10 years divorce and the a large increase in business tax that is to much for Jane to handle herself. Jane now brings her issue to TEIL Firms to see what we can do to help Jane.’
Let’s consider some legal options:
1. Jane ever think about a partnership?
Giving partial ownership rights to another individual allows for a shared liability and can make the seemingly steep tax not so steep if Jane pays half
2. Have your LLC taxed as an S-corporation Jane
LLCs can choose how they are taxed , because they are subject to employment tax , some owners choose to be taxed as a S-Corporation to avoid employment tax.