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Why an S corporation could be your best bet

(Content provided by Microsoft)
Why does any startup entrepreneur incorporate a business? Is it for prestige, or to seem like a bigger company right away?

Those aren't bad reasons. But most knowledgeable entrepreneurs place their best new-business ideas into a corporate structure to protect personal assets from unexpected business liabilities. In other words, they want to play it safe.

The problem with this prudent, liability-limiting strategy is that owners of especially profitable businesses end up paying double taxes-first on corporate business profits and again on any dividends paid to shareholders. Owners also lose the opportunity to write off business losses against other personal or joint income as they could in a sole proprietorship business structure.

Fortunately, there is a way to incorporate so that startup entrepreneurs can minimize taxes plus keep their personal bank account away from business creditors. The answer is ... an S corporation.

Ongoing Compliance - Protect Your Business Structure and Avoid Piercing the Corporate Veil

(Content provided by BizFilings)
Many new business owners are unaware of the requirements they must fulfill in order to keep their corporation or limited liability company (LLC) compliant with the state of formation. Incorporating a business or forming an LLC offers business owners the protection of limited liability, meaning the owners are typically not held responsible for the debts of the company. However, just having a corporation or LLC does not mean that the owners' personal assets are continually protected. Business owners must comply with specific requirements in order to remain protected under that corporate or LLC status.  More...

A Primer on S-Corporations

(Content provided by BizFilings)
A subchapter S corporation is a standard corporation that has elected a special tax status with the Internal Revenue Service (IRS). S corporations carry the same benefits as C corporations, such protecting the shareholders' (or owners') personal assets from the debts and liabilities of the business, unlimited life and tax deductibility of certain business expenses. The primary differences between S corporations and C corporations are the way they are taxed and also the ownership restrictions S corporations face.  More...

Why Incorporate?

(Content provided by Intuit)
As a sole proprietor, your liability for business debt is unlimited. Personal assets such as your home, personal bank accounts, and other valued assets may be at risk. What does this mean? It means that if your business experiences severe financial difficulties, creditors can take away your personal property such as your home, retirement savings, or any other asset you or your spouse own. In our increasingly litigious society, it is becoming ever more important to limit your exposure and protect yourself from liability.  More...

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