An LLC by default is either taxed as a sole proprietor (for a single member LLC) or a partnership (for multi-member LLCs). A corporation by default is taxed as a C corporation which has double taxation, once at the corporate level and again for the personal shareholders. S corp tax status lets a company treat its owners as employees. This is important especially when comparing to a traditional LLC which has to pay full self-employment taxes on its income. A C corporation will have to pay half of the self-employment tax while the employee owner pays the other half. With an S corp election this amount can be limited by paying an owner a “reasonable salary” and limiting self-employment taxes. An LLC taxed as an S corp can be achieved by reading form 2553 instructions and filing an S corp election.
Resale Certificates Explained: What New Business Owners in the US Need to Know
Resale certificates are essential tools for new businesses to purchase inventory tax-free. By preventing double taxation, they ensure retailers only collect sales tax from end
