At the beginning of the year I wrote an article about forming a business to limit your personal liability. I mentioned the importance of using the correct business structure and ensuring that you do not commingle personal and business funds. This article goes further into the tax benefits that are available through a Limited Liability Company (“LLC”).
One of the amazing benefits of using a LLC to run your business is the tax election option. Single-member LLCs are, by default, classified as disregarded entities and taxed as a sole proprietorship for income tax purposes. Multi-member LLCs are, by default, classified as partnerships and taxed as such. However, both single and multi-member LLCs have the option to elect to be taxed as a corporation by filing the appropriate forms with the IRS. Being taxed as an S-Corporation provides various options for more favorable tax treatment.
If you are forming a new business or feel that electing a different tax option may benefit you, don’t hesitate to give me a call!
It has been a pleasure working with the Peace Legal law firm over the last couple years. The owner of Peace Legal has decided to move in a different direction and close down his firm. I formed IntegraLaw with the intent to not only ensure that my clients have continued representation, but to carry Peace Legal’s mission of being a refreshingly different type of law firm.
We’ve all heard the famous line from Shakespeare’s Romeo and Juliet, “What’s in a name?” Although we can’t judge a person or entity by its name alone, we often choose names as a way of conveying a message or instilling a desired principle. IntegraLaw is founded on three pillars.
1. Integration. We integrate our services with technology allowing our clients further access to their cases. We integrate business owners into the economy by limiting liability and securing positive relationships with employees, contractors, and other business partners. We integrate new family relationships and custody arrangements for our clients when divorce cannot be avoided.
2. Integrity. We maintain the highest level of integrity as individual attorneys and as a firm. We are dedicated to responding quickly and honestly Want to add a caption to this image? Click the Settings icon. to our clients’ questions.
3. Integral Solutions. We zealously search for the integral solutions to each case and focus on doing what is in our client’s best interest.