Should You Form an S-Corporation to Save on Income Taxes?

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If you are operating a business, Tummel and Casso should be consulted to help determine the right structure for your entity.  While some operate as sole proprietors and the business thus has no separate legal identity, many entrepreneurs and self-employed individuals can benefit greatly from forming an S-corporation. 

An S-corporation allows for small business owners to achieve certain protections from liability and can limit personal responsibility for business debts. Since the business is a separate legal entity, the business is distinct from the individual who owns it.  An S-corporation can also help a small business owner to achieve tax savings.

Is Forming an S-Corporation the Right Step to Take?

S-corporations, unlike C-corporations, allow for pass-through taxation. This means that income and losses from the S-corporation can be claimed on the individual business owner’s tax returns.  An S-corporation thus allows for business owners to avoid the potential double taxation that can go along with forming a C-corp (since the business pays taxes on a C-corp’s profits, and the owners also pay taxes when dividends are issued).

Although income and losses pass through to individual business owners, an s-corporation can still allow for significant tax savings by reducing the amount an individual owner is required to pay in payroll taxes.   Payroll taxes include payments to Medicare and payments to Social Security.  The self-employed pay out 15 percent in payroll taxes since no portion of their taxes are covered by a separate employer as they are for those who earn traditional W-2 wages.

When you form an s-corporation, however, you can pay yourself a salary that is equal to just a portion of the money the S-corporation makes. You can use the remainder of the money to pay out to yourself in periodic distributions.   This allows you to avoid paying payroll taxes on a portion of the money earned that is distributed in distributions.

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Louisiana Car Accident Risks a Matter of Perception

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Drivers need to make safe choices behind the wheel to prevent auto accidents. This means they need to recognize the types of behaviors that put them and other motorists at risk, and they need to do everything possible to avoid actions that have a strong chance of leading to a collision. 

Unfortunately, a recent study shows that the public as a whole is becoming less worried about certain dangerous driving actions. This is bad news for motorists because if drivers don’t see a behavior as very dangerous, they may be more inclined to engage in unsafe action behind the wheel. A lawyer is in the best position to help you determine how to proceed after an injury accident.

AAA Study Shows Drivers Aren’t as Worried About Dangerous Driving

According to the Telegram, a recent AAA study involved conducting interviews with 11,000 people of driving age between 2009 and 2012.  The study was completed by the AAA Foundation for Traffic Safety and respondents lived throughout the United States.  Some of the drivers responding to the survey may have been interviewed more than one time over the course of the four year period that AAA was doing its research.

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Just before 8:00 am this morning, September 30, 2013, a CTA Blue Line train rear-ended a stopped CTA Blue Line train at the Harlem stop in Forest Park, Illinois. Dozens of CTA passengers are reporting injuries, and local authorities are shutting down surrounding roads to allow ambulances immediate access to the scene. The two trains were on the same track, which is not supposed to happen at the station.

(photo by Chuck Berman, courtesy of the Chicago Tribune)

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This crash is eerily similar to two stopped/rear-end train crashes involving a CTA trains in June (Blue Line) and August (Brown Line) of 2001, which prompted the National Transportation Safety Board [“NTSB”] to issue a Railroad Special Investigation Report.  The NTSB found that the CTA train operators failed to follow the CTA’s operating rules.  Because of the investigation, the NTSB recommended the CTA develop and implement systematic safety procedures for performing and documenting frequent management checks to ensure all operating personnel are complying with Chicago Transit Authority operating rules, including speed restrictions and signal rules.  The NTSB’s full report can be found at http://www.ntsb.gov/doclib/safetystudies/SIR0201.pdf. Since the CTA has been down this track before, it prompts the question: What happened this time?

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Battle Creek, MI residents regularly rely on one man to solve their legal problemsWe are a hard-working law office with honest Battle Creek, MI personal injury lawyer, attorney Bloom has a well-earned reputation for delivering results. Whether it’s auto accidents on I-94 or motorcycle accidents on I-194, Gary Bloom works with injury victims and gets them the compensation they deserve by law.

Your case is about more than just money. It deserves justice, about holding people accountable for their actions. That’s why it’s critical you have someone on your side you trust who thoroughly understands the legal system. Looking for a Lansing MI personal injury attorney?

Our firm is prepared to handle any kind of personal injury accident. We know how to investigate accidents, who to talk to for evidence and how to use that information to build a solid case. Our firm may enlist the services of experts, including medical professionals or accident reconstruction specialists. Whatever it takes to make sure you get excellent representation for your accident case.

You might need a lawyer. Your case might seem straightforward. The person who caused your injury might have even admitted wrongdoing. Many so-called simple cases become complicated. People change their story. And most insurance companies are focused only on one thing: paying people as little as possible. That’s why you need a lawyer.

Auto accident injuries cover a wide range. Some injuries might seem minor at first. Over time, even seemingly minor injuries can develop into more serious, chronic and debilitating conditions.:

• Back and neck injuries
• Spinal cord injury
• Traumatic brain injury
• Broken bones
• Fractures

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