Business Tax Services
Sanjay Taxpro Incorporation Services or Business Formation Services can help you pick the correct business structure for your business from a tax planning point of you.
Sole Proprietorship vs. C Corporation vs. S Corporation vs. LLC
| Sole Proprietor ... | C Corp | S Corp | Limited Liability... | |
|---|---|---|---|---|
| Formation Requirements, Costs | None | Must file with state; state specific filing fee required. | Must file with state; state specific filing fee required. | Must file with state; state specific filing fee required. |
| Personal Liability | Unlimited liability. | Shareholders are not typically held liable. | Shareholders are not typically held liable. | Members are not typically held liable. |
| Administrative Requirements | Relatively few requirements. | Election of board of directors/officers, annual meetings, and annual report filing requirements. | Election of board of directors/officers, annual meetings, and annual report filing requirements. | Relatively few requirements. |
| Management | Full control. | Shareholders elect directors who manage business activities. | Shareholders elect directors who manage business activities. | Members can set up structure as they choose. |
| Term | Terminated when proprietor ceases doing business or upon death. | Perpetual; can extend past death or withdrawal of shareholders. | Perpetual; can extend past death or withdrawal of shareholders. | Perpetual, unless state requires fixed amount of time. |
| Taxation | Entity not taxable. Sole proprietor pays taxes. | Taxed at corporate rate and possible double taxation (Dividends are taxed at the individual level if distributed to shareholders). | No tax at the entity level. Income passed through to the shareholders. | No tax at the entity level. Income passed through to members. |
| Double Taxation | No | Yes, taxed at corporate level and then again if distributed to shareholders in the form of dividends. | No | No |
| Self Employment Tax | Subject to self employment tax. | Salary subject to self employment tax. | Salary subject to self employment tax, but shareholder distributions are not subject to employment tax. | Salary subject to self employment tax. |
| Pass Through Tax Treatment | Yes | No | Yes | Yes |
| Tax Forms | 1040 | IRS Form 1120 | IRS Form 1120S Shareholders get K-1 for personal tax returns. | 1 member: sole proprietor IRS Form 1040 - Schedule C Partnership: IRS Form 1065. Members get K-1 |
| Transferability of Interest | No | Shares of stock are easily transferred. | Yes, but must observe IRS regulations on who can own stock. | Possibly, depending on restrictions outlined in the operating agreement. |
| Capital Raising | Individual provides capital. | Shares of stock are sold to raise capital (Securities laws apply). | Single class of stock only. Limited to 100 shareholders. | May sell interests, but subject to operating agreement (Securities laws may also apply). |
| Ease of Operation | Easiest | Must have annual meetings, Board of Directors meetings, corporate minutes, and stockholder meetings. | Must have annual meetings, Board of Directors meetings, corporate minutes, and stockholder meetings. | Easy, some states may require more than others. |
Our Comprehensive Tax & Financial Services
ITIN Processing
We have signed an agreement with IRS to process W7 (ITIN) applications as Certifying Acceptance Agent (CAA). A CAA is an individual, business or organization...
Tax Advice
If you are facing the possibility of an IRS or state collection action, getting a tax advice from Sanjay TaxPro could be one of the best possible decisions...
Personal Tax Filing
The most reliable and easy way to file your Income Tax Return online. SanjayTaxpro can save you a lot of time and effort by filing your taxes properly.
LLC Formation & Incorporation Services
Sanjay Taxpro Incorporation Services or Business Formation Services can help you pick the correct business structure for your business from a tax planning...
BookKeeping & Payroll Services
Our Bookkeeping & Payroll services are designed to lessen the burden of day-to-day, monthly bookkeeping and payroll tasks. Detailed management of your daily finances...
Financial & Investment Planning Services
You work hard to bring home a paycheck, provide food and shelter, and accumulate wealth, so you don't want to leave these important issues to chance...
ITIN Processing
We have signed an agreement with IRS to process W7 (ITIN) applications as Certifying Acceptance Agent (CAA). A CAA is an individual, business or organization...
Tax Advice
If you are facing the possibility of an IRS or state collection action, getting a tax advice from Sanjay TaxPro could be one of the best possible decisions...
Personal Tax Filing
The most reliable and easy way to file your Income Tax Return online. SanjayTaxpro can save you a lot of time and effort by filing your taxes properly.
LLC Formation & Incorporation Services
Sanjay Taxpro Incorporation Services or Business Formation Services can help you pick the correct business structure for your business from a tax planning...
BookKeeping & Payroll Services
Our Bookkeeping & Payroll services are designed to lessen the burden of day-to-day, monthly bookkeeping and payroll tasks. Detailed management of your daily finances...
Financial & Investment Planning Services
You work hard to bring home a paycheck, provide food and shelter, and accumulate wealth, so you don't want to leave these important issues to chance...
ITIN Processing
We have signed an agreement with IRS to process W7 (ITIN) applications as Certifying Acceptance Agent (CAA). A CAA is an individual, business or organization...
Tax Advice
If you are facing the possibility of an IRS or state collection action, getting a tax advice from Sanjay TaxPro could be one of the best possible decisions...
Personal Tax Filing
The most reliable and easy way to file your Income Tax Return online. SanjayTaxpro can save you a lot of time and effort by filing your taxes properly.
LLC Formation & Incorporation Services
Sanjay Taxpro Incorporation Services or Business Formation Services can help you pick the correct business structure for your business from a tax planning...
BookKeeping & Payroll Services
Our Bookkeeping & Payroll services are designed to lessen the burden of day-to-day, monthly bookkeeping and payroll tasks. Detailed management of your daily finances...
Financial & Investment Planning Services
You work hard to bring home a paycheck, provide food and shelter, and accumulate wealth, so you don't want to leave these important issues to chance...
Locations
Milpitas
691 S Milpitas Blvd Ste 217, Room 13,
Milpitas CA 95035
(call 408-462-5829)