Consultant’s Corner: Income Tax by Entity Type

Q: What are the income tax considerations for different business entity types? To develop a better understanding of the differences in tax treatment and owner distributions/compensation for sole proprietorships, partnerships, C corps, S corps and similarly taxed LLCs, you can review the following basic guidelines: Sole proprietorship and LLC taxed as a sole proprietorship. A […]

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Consultant’s Corner: Serving on a Corporate Board

Q: How does a person go about getting considered to serve on a corporate board, or as an advisor to other corporate boards? The approach, qualifications, and other considerations for getting a board of directors, or advisory committee, seat vary somewhat based on the type of corporation—nonprofit, privately-owned, or publicly owned. Having contacts and relationships […]

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Consultant’s Corner: LP vs. LLP

Q. Is an LP the same as an LLP? If not, what are the advantages and disadvantages of each entity? LP stands for Limited Partnership, while LLP stands for Limited Liability Partnership. The two structures are very different from purpose, governance, and legal liability perspectives: Limited Partnership (LP) LPs are commonly used for long-term real […]

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Consultant’s Corner: Finding Angel Investors

Question: I am beginning a new business and would like to secure funding through angel investors. Where should I start? Of course, the angel investor category can include family, friends, and business associates. Also, the type of business venture and amount of capital needed can influence where to look for angel investors. For example, your […]

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Consultant’s Corner: Tax Treatment of Tipped Employees

Question: Are tips received and reported by a waitress taxable for unemployment calculations? Tips reported by a restaurant waitress to an employer are taxable for unemployment tax calculation purposes, subject to certain thresholds and guidelines. Also, there are additional tax treatment considerations for different types of food service businesses and tip and gratuity procedures that […]

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Consultant’s Corner: Hiring Your First Employee

Question: I’m growing and am thinking about hiring my first employee. What should I do? When growing a business, entrepreneurs typically reach a point in the process where they must consider the prospect of adding staff. There are several important things to consider when hiring employees, which include: labor laws, compensation structure, fringe benefit programs, […]

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