Another distinction lies in flexibility. LLCs allow owners to reinvest profits or distribute income in a variety of ways, ...

Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author. One of the benefits of being an S Corporation owner is having the ability to significantly ...

CPAs can help their clients determine what is a reasonable salary to pay shareholder employees (SEs) of S corporations, thus satisfying an IRS priority to collect proper amounts of employment taxes.

If you’re self-employed, you’ll usually have to pay higher Social Security and Medicare taxes, collectively known as self-employment taxes, than if you were an employee of a company. One way to help ...

To avoid federal employment taxes, S corporations may be tempted to understate the wages and salaries of employee/shareholders. The IRS however, may recharacterize what S corporations classify as ...