FAQ: Should my business be an S Corp or LLC? How should it file?

Main Objective: Help you understand basic business entity structures and identify key indicators to guide clients on the best setup for their needs.

Description: In this episode, we break down the essentials of business entity structures to help you guide clients with confidence. We explore how to choose between an S Corp or LLC, explaining how an LLC’s tax filing varies—Schedule C, 1120S, or 1065—based on its setup. We share why S corporations are great for profitable businesses and partnerships work well for passive income and lower audit risks, while steering small businesses away from C corporations. We dive into spotting key indicators like client risk tolerance, profitability, and IRS rules to determine the best structure. Plus, we offer practical tax planning tips, from solid record-keeping and audit prep to setting aside the right tax savings percentage. Tune in to learn how to spot the signs and advise clients on the perfect business setup!