Consultant’s Corner: Business Entity Selection

Question: “How should I go about choosing a business entity type?” Many small businesses are structured as unincorporated sole proprietorships and General Partnerships due to their formation and maintenance simplicity and costs; however, the primary disadvantage with a sole proprietorship or General Partnership is that it is not a separate legal entity, even when it […]

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Should You Put Your Accounting in the Cloud?

More and more businesses are moving their accounting systems into the cloud, and finding huge benefits at tax season. It is a particularly big benefit to reducing tax preparation time, with all the information accessible in one place, and also available to your accountant throughout the year for regular check-ins that reduce the chance of […]

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How New Tax Cuts Impact an LLC

Q: How do the new federal tax rules impact the taxation of my LLC business? The recently enacted Tax Cuts and Jobs Act of 2017 (TCJA) took effect January 1st, 2018 and will have a significant impact on the federal income tax treatment of business pass-through entities, which for the TCJA are defined as sole […]

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What is This Financial Statement?!

You probably started your business because you love what you do. But you’re probably a lot less passionate about the various and sundry financial statements that necessarily require so much of your time. The ADP blog team takes a look at many of the business financial statements you are responsible for completing, including the balance […]

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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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