If you're an entrepreneur, you're likely familiar with the complexities of building a business and establishing a corporate structure. The specific services offered by your business are among the main factors setting this structure in place. There are also legal stipulations that regulate tax system, revenues and other financial issues to consider. Many of these regulations vary according to state laws and the industry where the company operates.
In a partnership, the ownership of a company is shared by two or more individuals. This entails the joint management of the business, with skills, resources and properties being evenly shared in the process. Resulting profits and losses are split by all the owners as well. While partnerships must file a partnership information return with the IRS every year to report their profits and losses, they don't represent a legal entity separate from the owners. Because of this, partnerships are exempt from filing legal documents with the state and paying taxes. Instead, each partner must pay a share of the partnership income or loss on their personal tax return.
Unlike partnerships, corporations are legal entities that are separate from their owners. Corporations must pay income taxes from the profits they make, even when the shareholders are not liable for a corporation's debt and don't have to pay for its profits on their personal tax return.
United Tax and Accounting Group handles your business income taxes with accuracy and effectiveness depending on the type of association you have set. If you're part of a business partnership, we verify that all stipulations on the written agreement regulating it are fulfilled by all parties involved, including the proper distribution of partnership income. Likewise, we adapt our tax planning services to the paying methods required by the type of business you operate.
