One of the most significant considerations when choosing a business structure for your company is: “Will it give me the most favorable tax outcome?” And the entity type you select impacts how the IRS ...

Sometimes a limited liability company, or LLC, has a year with no business activity. For example, a newly formed LLC might not have started doing business yet, or an older LLC might have become ...

Limited liability companies (LLCs) are what’s called “pass-through entities.” This means that the business does not pay corporate income taxes. Instead, the individual owners or members of the LLC ...

Getting the choice of entity right at the start is crucial, since switching later can have tax and other consequences. Getting the choice of entity right at the start is crucial, since switching later ...

Many businesses that start as a sole proprietorship reach a point where it makes sense to graduate to a more complex business structure. Registering your business as its own legal entity can also ...

Jessica Gibson is a content update editor and writer for Investopedia. She has over 10 years of experience in digital publishing and three years of experience covering financial topics like insurance, ...

Choosing between an LLC and a corporation can feel overwhelming. Both structures have their pros and cons, and the decision can impact everything from taxes to liability protection. If you’re starting ...

Choosing a business structure may not be the most glamorous part of starting a business. In fact, it can actually feel a little daunting. But the business structure you choose can affect how you pay ...

Filing taxes for your LLC as an S Corp allows an owner-operator to designate him- or herself as an employee of the LLC yet to still report the income of the business on their personal tax return. S ...

Limited Liability Companies give business owners a unique blend of liability protection and some real tax flexibility. The main tax perk of an LLC is pass-through taxation, which lets profits flow ...