It’s January, which means tax season is upon us. Filing business taxes can be a major chore, but we at SmarTax, LLC are here to help businesses find the accountants near me that they need to handle their business taxes. Did you know that different kinds of businesses are also taxed differently? Let us take a moment to share with you the facts you should know about how each type of businesses is filed differently. Soon, you’ll know exactly how each process works so that you can make the best decisions when seeking help with your own business taxes. We are located in Pembroke Pines.
How Different Businesses are Taxed Differently
- Sole Proprietorship
- For when the business and owner are legally the same, the business itself is not considered a taxable entity. As a result, the business assets, liabilities, and income are all treated as belonging to the owner.
- General Partnership
- This is similar to a sole proprietorship in that the business of a general partnership is legally treated as the same as the owners. The difference is that the partnership is taxed to each party at their own rates. All the income must be distributed to the partners, and they’ll handle them in their individual tax returns.
- Limited Liability Company (LLC)
- An LLC is considered a separate legal entity, unlike a sole proprietorship or general partnership. That said, in regards to taxes, LLCs are handled like a partnership where each owner will handle the income through their individual returns. This is true for federal taxes; however, this might not be true for state taxes depending on where the business is located.
- C Corporation
- C corporations are subject to taxation at a corporate level. If the owners distribute their income through dividends, then they will be subject to double taxation as well. This means that the corporation will be taxed on its own income and again based on dividends received. Owners receiving salaries can also be taxed.
- S Corporation
- These corporations are special in that they must have filed a special election to be treated like a partnership. This means they, like LLCs, are treated like partners for federal taxes, and their income will be pass-through taxation handled by each shareholder’s individual returns.
Why Trust A Tax Service with Filing Business Taxes?
While it’s true that anyone can do their taxes by themselves, even business taxes, it’s a grueling process. Why not hand over that responsibility to a team of professionals so that you can focus on what’s more important–your business? The best part is that a team of specialists at a tax service have a much better grasp on the ins and outs of tax season more than the average person. There are often little details that can get overlooked, but with tax service experts at your disposal, they’ll make sure you save as much money as possible. This is the real big reason to consider hiring professionals to handle your taxes for you.
Contact Us for Accountants Near Me
Are you ready to get tax season over and done with? If so, don’t fret because we at SmarTax, LLC are here to help you with filing business taxes. If you live in Pembroke Pines, don’t worry about searching for “accountants near me,” because we have you covered. Contact us today for more information on how we can make this tax season as easy as possible for you.