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Best Business Entities For Beginning Streamers and Influencers

With social media and streaming platforms becoming a huge part of the world we live in, many people have created their own channels to not only entertain but also make money. Those that do choose to embark on the journey of becoming a professional streamer or influencer should be aware of how to personally limit themselves to lawsuits and how they will be taxed on the income they receive. In this blog, we will identity different business entities that streamers/influencers can utilize at the beginning of their journey and as their channel grows.

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S-Corp Shareholder Loans – Mistakes and How to Avoid Them

Owning and operating an S-Corp provides many business owners significant benefits. These benefits primarily relate to tax savings and limited liability protection. However, there are strict rules applicable to maintaining an S-Corp in order to preserve all the benefits. In this blog, I am going to discuss a common mistake made by S-Corp owners – failing to properly setup S-Corp loans to and from shareholders. This mistake can have a devastating impact on an S-Corp and its owners, ranging from increased taxes to loss of the corporate veil.

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Eligibility Requirements Of An S-Corp

Forming an S-Corp can have several advantages both tax related and non-tax related but, before you start planning to form an S-Corp you need to know whether your eligible or not. Below we will discuss the qualifications that must be met to form an S-Corp, some important dates and timelines, and how the revocation/termination of an S-Corp can occur.  If you are interested in learning more about the tax advantages of an S-Corp check out our blog about S-Corp Tax Savings.

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S-Corps and The Reasonable Compensation Dilemma

If you’re reading this blog, chances are you’re either considering forming an S-Corp or you have an S-Corp and are trying to determine the amount of salary you need to receive from the S-Corp. If you haven’t decided yet, check out our blog about S-Corp Tax Savings.  So, how do you figure out what your salary (referred to as reasonable compensation for tax purposes) should be? The answer…it’s complicated. There is no exact formula for figuring out what your reasonable compensation should be, instead you need to analyze all the facts of your specific situation to make the determination. And as you may have guessed, your analysis needs to be “reasonable.”

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What you Really Need to Know About S-Corp Tax Savings

 

If you are self-employed, an independent contractor, or operating a sole proprietorship you may be interested in learning more about a well-known tax saving strategy—forming a corporation or LLC and electing to be taxed under Subchapter S of the Internal Revenue Code (“IRC”). This is commonly referred to as forming an S-Corp. Although the tax savings of operating an S-Corp are very real (under the right circumstances), it does come with additional compliance costs (filing fees, other taxes, returns, etc.). As a tax attorney that has represented several hundred individuals and small businesses, I felt it would be helpful to provide an honest and detailed breakdown of the requirements and identify some of the common mistakes people make.

Disclaimer: This article was drafted for informational purposes only.  It is not a substitute for legal representation.  The concepts and laws discussed in this article are generalizations and may not apply the same way for each factual scenario.  Therefore, when assessing whether forming an S-Corp is the best option for you, it is important to seek legal advice outside of this article.

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