What type of business is yours?

Tradition incorporation

Save more in taxes than I would doing anything else.

 

Started out as a sole proprietor.. changed to LLC. Expanded and changed to a schedule C... This enabled me to be an employee while keeping business separate from personal and getting company provided benefits.
Tax liability was lowered.
If I stayed as a one truck operation, I would've kept the sole proprietor status..
As the driver of the truck there really is no benefit to incorporate. That I know.
Good luck.

 

I'm a new o/o going sole prop for reasons mentioned above. Took a few businesses classes & got a degree and all that jazz. They told me sole prop is best unless your income/personal situation/business outlook changes and S Corp or LLC turns up a better profit. Run the numbers both ways and don't forget about prepaid expenses like that shiny new engine/transmission you store at your Uncle Bobs garage. Deduct everything you can!

 

I'm a single truck owner that has an LLC. I'm going to eject to be taxed as an S-Corp. This will make me an employee of the company I own & CAN save me taxes. I pay myself a decent but low wage & my company has to withhold taxes just like a regular job does. But I can pay myself a dividend from company profits (benefit of being an owner of the company) & that income is taxed at a less rate.

Here's a pretty good article to start your research. Google is your friend in this case. I've read a ton of articles, most say the same thing, but it helped me learn.

Saving Taxes with an S Corporation

 

Don't forget the additional accounting required. For C corporation double entry books are required, not sure if it is for S corporations.
Sound idea in theory. Practice becomes more office work.
You can also do more with depreciation and other write-offs.
Good luck.

 

I'm not sure what you mean by double entry. Also, whether my LLC is taxed as a sole proprietor or an s-corp I write off every expense to my business including my healthcare payments & retirement funding. From all the research I've done there isn't any extra write offs or depreciation that a c-corp gets that I don't.

 

What is the double entry system? | AccountingCoach

The accounting process is a little different. I hired an accountant to set it up in QuickBooks.

Several options for depreciation and capital gains and losses with corporations.

I hire tax attorney and accountant to track all the financials.
Good luck.

 

All you're talking about is a basic accounting practice that should be used anyways by all. Anyone that uses QuickBooks is already doing double entry. You just don't see it happening when you enter your expenses or revenue.

There isn't anything special about double accounting.

 

Looked like a zero balance budget basically.