March 12, 2012 – Corporations take many forms – C-Corp’s, S-Corp’s, or even the relatively new LLC (limited liability company). Whatever your business form, you need to pay taxes. And paying taxes isn’t just ‘not fun’ – it’s complicated. Here at Safe Harbor CPAs, we specialize in small business tax services for businesses in San Francisco and throughout the greater San Francisco Bay Area. Our goal is to help minimize the tax bill for your C Corp, S Corp, or LLC.
C-Corp, S-Corp, and LLC – Tax Basics
Without giving any professional advice, you do need to understand the basics of each form of business organization. First, the C-Corp. A C-Corp is what you might think of as a ‘traditional’ corporation – it exists very independently and pays taxes as an independent entity. You as a shareholder pay taxes on any wages you accrue (as an employee) as well as on any dividends paid for the stock you own. The downside is what’s called double taxation – both the C-Corp and the S-Corp pay taxes.
Second, the S-Corp. Again, without giving any tax advice, the S-Corp passes through income to its shareholder / owners with the benefit that there is no double taxation – the S-Corp technically does not pay taxes… it passes through income, and you pay the tax.
Third, the LLC. This is a new form of organization, and it’s better just to call us on the phone or send us an email if you have an LLC in San Francisco and want to understand the tax implications.
Tax Prepartion for C-Corp, S-Corp, and LLC Organizations in San Francisco
Beyond the tax and organizational complexities is a simple one: getting the taxes done properly for your corporation in San Francisco. Rather than get lost in the nuances of tax law, it’s cost efficient to find an effective Accounting Firm or team of CPAs who understand C-Corps, S-Corps, and LLC’s and outsource bookkeeping, accounting, and tax complexities to them. That’s what we do all the time for businesses in the San Francisco Bay Area that are looking for the best small business CPA.
It’s tax time for your C-, S-, or LLC Corporation – so give us a call!