Steve Zahnow, CPA, a Denver CPA, will work with new and developing businesses throughout Centennial, Greenwood Village, Cherry Hills, Littleton and the surrounding communites to help simplify business formation and incorporation procedures.
We'll take the time to learn more about your business plans so we can recommend the right entity type. We'll explain the advantages and disadvantages of each type of business entity so you can be confident that your choice not only suits your business needs now, but that it will also minimize future tax liability.
A Limited Liability Company or LLC is a legal entity that allows you to protect your personal assets from the company’s liabilities. If your business is structured this way the "members" or owners will have no personal responsibility for the financial obligations of the business. With an LLC the business itself does not report taxes on its profits but uses "pass-through" taxation where the income and deductions are reported on the personal income tax returns of the members.
There are benefits to structuring as a C Corporation but one drawback is that the business is taxed on profits at two different points (double taxation). First when the profits are earned and again when the money is distributed to shareholders as dividends. One positive feature is that the owners are not held personally liable for the financial obligations of the business.
S Corporations are similar to C Corporations in a number of significant ways except that they are only taxed on the profits once. The company itself does not pay taxes but the income from the company is passed through to shareholders and they are required to report any income from the business on their own personal tax returns.
Call us at 303-773-3100 and ask for Steve Zahnow today. You can also sign up for a FREE consultation online.