Tax Planning

Rather than viewing taxes as an annual event, year-round preparation can reduce the stress of this time of year. This begins with organized record-keeping including good financial software which produces timely, accurate financial reports. Procrastination of meeting with the accountant might delay knowing the exact amount of the bill owed, but also limits the time you have to prepare to pay any taxes due. As with all tax matters excellent advice is important. The comments below are designed for general information only. Your tax adviser should be consulted about the application to your situation.

How taxes are paid for your company is based on the structure of your business—sole proprietorship, partnership, limited liability corporation (LLC), S corporation, or C corporation. Sole proprietorships, partnerships S Corporations, and LLC’s do not pay taxes on income. Owners include the income in their personal tax returns to pay taxes on the profits of the company. Partnerships, S Corporations, and LLC’s are also required to file an information-only return.

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