Most business entities are formed for legal reasons not tax reasons. We do not give legal advice, but with regard to taxes, we want to help you choose the type of business entity for your situation, because it will help you save the largest amount of money possible.
Get a free consult.
If you have an existing business or are starting a new business you may want to consider forming a corporation or an LLC.
Most people who go into business for themselves just add an extra page to their individual tax return called a Schedule C to report earnings and deductions from self-employment.
If you form any other type of business entity you will need to file a separate tax return for your business and then report your business earnings on your individual tax return as well. Sometimes this can result in the business getting taxed and then getting taxed again at the individual level.
We can help with tax planning to determine how you can save the most money when deciding what type of business entity is best for you.
Get a free consult.
Most business entities are formed for legal reasons – not tax reasons. We do not give legal advice. Check with a qualified attorney to determine if forming an LLC or corporation will offer you greater personal protection.
In California an individual can form a Limited Liability Company and be taxed on a regular individual tax return. (Most people think LLC stands for Limited Liability Corporation. The “C” stands for company.)
Once the LLC is formed it can be taxed as a corporation if the owner thinks that entity offers better advantage.
Get a free consult.
The most complicated tax entity is the corporation.
Unlike a sole proprietor, corporations must keep very detailed bookkeeping. Sole proprietors can commingle money between their personal finances and the business. If you are doing business as a corporation you must pay yourself wages (W-2).
Corporations cannot use the corporate checkbook for personal expenses. Many small business people have difficulty adhering to this regulation. A small business just starting out may be better off not forming a corporation.
If you decide to from a corporation you will have to make a choice between a “C” corporation or an “S” corporation.
The “S-corp” is taxed as a pass-through, meaning no tax is paid by the corporation. All of the income and deductions are passed-through to the shareholders.
A “C-corp” is taxed at the corporate level and then taxed again at the individual level.
Business owners have to be very careful when considering which type of corporation is best for them.
Get a free consult.
If a business has more than one owner they need to operate as a partnership.
Partnerships must file a separate tax return just for the partnership. Then each owner’s share of the income and deductions are reported on the individual tax returns.
Partnership tax returns tell the IRS about your business. All of the taxes are paid on your individual tax return. For this reason, partnership tax return are called a pass-through.
Partnerships can also file for liability protection by forming an LLC with the Secretary of State.
Get a free consult.
We can help you determine which type of business entity is right for you and saves you the most money.
Contact us for a free, no obligation estimate: (619) 260-1955.
Get a free consult.
You get you a larger refund when we find the legitimate business deductions that are often overlooked… Unless you like giving your extra money to the government.
Understand your tax return with a tax preparation specialist that will explain the process in a thorough, easy-to-understand way.
If you are not happy with our work and you decide not to file the return we prepared for you, we will not charge you.
I spoke with several other CPA/Tax Preparation services before finally selecting Randy and ABC Tax Service. The day of my appointment Randy was on time, pleasant and thorough. He explained every step of each of the returns he filed for me and was very helpful in answering all my questions.
Randy is genuine and honest and a master in his trade. I am 100% pleased with his services and am confident in his knowledge and would highly recommend him for all your accounting needs!
I ended up with alot of different forms this year in which I though it was going to be a complicated, long and drawn out process. To my surprise Randy was well organized, which I love, and was able to do everything in a one hour session which had not happened in my previous tax years.
We have complex tax returns every year, and every year, since moving to San Diego, we have trusted this tax preparation service with our complicated returns. Very personable/professional staff and phenomenal knowledge of tax law.
I’ve used Randy for the past several years. From the start, he identified tax refund opportunities for the previous year and the year before that with a retroactive review. Randy is quite responsive and very proactive with scheduling our time together. He’s been flexible with my previous extensions as well as my changing life situation over the years.
I have done my taxes with ABC Tax Service for the second time now. Randy is extremely professional, easy to talk to and seems to understand taxes inside and out. Last year when I worked from home, he went through a bunch of scenarios with me to find out what tax breaks I might qualify for.
Randy Ames, owner of ABC Tax Service, San Diego
If you have an existing business or are starting a new business you may want to consider forming a corporation or an LLC.
Most people who go into business for themselves just add an extra page to their individual tax return called a Schedule C to report earnings and deductions from self-employment.
If you form any other type of business entity you will need to file a separate tax return for your business and then report your business earnings on your individual tax return as well. Sometimes this can result in the business getting taxed and then getting taxed again at the individual level.
An LLC is a Limited Liability Company. In California an individual can form a Limited Liability Company and be taxed on a regular individual tax return.
Once the LLC is formed it can be taxed as a corporation if the owner thinks that entity offers better advantage.
The most complicated tax entity is the corporation.
Unlike a sole proprietor, corporations must keep very detailed bookkeeping. Sole proprietors can commingle money between their personal finances and the business. If you are doing business as a corporation you must pay yourself wages (W-2).
Corporations cannot use the corporate checkbook for personal expenses. Many small business people have difficulty adhering to this regulation. A small business just starting out may be better off not forming a corporation.
If you decide to from a corporation you will have to make a choice between a “C” corporation or an “S” corporation.
The “S-corp” is taxed as a pass-through, meaning no tax is paid by the corporation. All of the income and deductions are passed-through to the shareholders.
A “C-corp” is taxed at the corporate level and then taxed again at the individual level.
If a business has more than one owner they need to operate as a partnership.
Partnerships must file a separate tax return just for the partnership. Then each owner’s share of the income and deductions are reported on the individual tax returns.
Partnership tax returns tell the IRS about your business. All of the taxes are paid on your individual tax return. For this reason, partnership tax return are called a pass-through.
Partnerships can also file for liability protection by forming an LLC with the Secretary of State.