Quick Take Here’s the tax concept that trips up almost every new LLC owner: a single-member LLC is a “disregarded entity” for federal tax purposes, which means the IRS pretends your LLC doesn’t exist when it comes time to file taxes. Your LLC gives you legal protection (it separates your personal assets from business debts … Read more

Quick Take Sales tax is money you collect from your customers and hold in trust for the state — it was never yours to begin with. That’s the single most important thing to understand about LLC sales tax, and it’s also where most business owners get into trouble. The most common mistake? Treating collected sales … Read more

Quick Take Here’s the mistake almost every new LLC owner makes: they assume that because they formed an LLC, sales tax works differently for them than it would for a sole proprietor or a corporation. It doesn’t. LLC sales tax obligations have almost nothing to do with your entity type. They’re determined by two things: … Read more

Quick Take If you’ve elected S-corp tax status, the IRS requires you to pay yourself a reasonable salary before taking any remaining profit as distributions. This isn’t optional, and it isn’t a number you get to pick out of thin air to minimize taxes — it’s a requirement tied to the actual value of the … Read more

This article is for educational purposes and does not constitute tax advice. Consult a qualified tax professional for guidance specific to your situation. Quick Take If you run your LLC out of a spare bedroom, a corner of your living room, or a converted garage, you’re probably entitled to a home office deduction — and … Read more

Quick Take Form 2553 is the IRS document that turns your LLC or corporation into an S-Corp for tax purposes — and the mistake most business owners make is filing it too early, too late, or without understanding what it actually changes. Here’s the thing nobody tells you upfront: the S-Corp election doesn’t create a … Read more