Entity Selection & Comparison
Explore the key differences and benefits between S Corporations, C Corporations, and Sole Proprietorships to choose the best structure for your business.
“No one owns you. One hundred percent of the stock in your personal corporation belongs to you.”
Comprehensive Entity Comparison and Determination Assistance Tailored to Your Business Needs
Converting to an S Corporation is widely touted as a tax-savings feature. In addition, the Tax Cuts and Jobs Act of 2017 came with reduced C Corporation tax rates and the possibility of saving income taxes through a C Corporation.
However, we often see clients who are not maximizing the tax-savings potential of an S Corporation. Put another way, we often see clients who are not saving any money in taxes by converting to an S Corporation.
You are invited to participate in a webinar analyzing the potential tax savings of an S Corporation, when to consider converting to an S Corporation, and how to maximize the tax-savings. The webinar will close by reviewing several basic tips for operating your business.
Get the webinar started by clicking the video above.
Throughout the webinar, reference is made to handouts. You can download the handouts here.
Service Overview
Choosing the right business entity impacts taxation, compliance requirements, and long-term profitability. Our entity selection services focus on comparing structures, evaluating conversion opportunities, and helping business owners apply tax-efficient strategies that align with their operations and financial goals.
Conversion Analysis
Unlock the full potential of your S Corporation with our tailored services. We assess the tax benefits of converting from either a Sole Proprietorship or C Corporation, optimize your salary and distribution strategies, and advise on effective expense allocation. Our goal is to help you maximize tax savings and ensure efficient use of your S Corporation structure.
- Evaluate Conversion Benefits: Assess the potential tax savings and benefits of converting from a Sole Proprietorship or C Corporation to an S Corporation.
- Optimized Salary and Distribution Planning: Develop strategies to balance salaries and distributions to minimize overall tax liability.
- Expense Allocation: Advise on proper expense allocation between the business and personal accounts to maximize tax benefits.
Compliance & Reporting
Stay compliant and tax-efficient with our expert services. We develop and review annual tax plans, prepare and file accurate S Corporation tax returns, and handle IRS Form submissions. We value your trust in us to manage your tax needs and keep your S Corporation on track.
- Annual Tax Planning: Create and review annual tax plans to optimize S Corporation benefits and ensure ongoing tax efficiency. Make recommendations for adjustments based on changes in tax laws or business circumstances.
- Tax Return Preparation: Prepare and file accurate S Corporation tax returns, ensuring compliance with IRS regulations.
- Form 1120S Filing: Handle the preparation and submission of IRS Form 1120S and related schedules for accurate reporting.
Service benefits
When you work with Somerset Tax Partners, LLC for entity selection and analysis, you gain:
Clear evaluation of entity conversion opportunities
Strategic salary and distribution planning
Improved tax efficiency through proper structure
Ongoing compliance and reporting support
Professional guidance aligned with current tax law
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