Tax Planning
Review tax considerations as business income and operations change.
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Business Structure & Formation
Tax and accounting guidance for entrepreneurs and business owners evaluating a new business entity or tax classification.
Entity Tax & Accounting Considerations
Choosing a business structure can affect tax reporting, payroll, accounting responsibilities, ownership arrangements, and future administrative requirements. Accounting Karma helps business owners discuss tax and accounting considerations associated with common entity structures and elections. Legal formation issues may require coordination with an attorney.
Information on this page is general and educational. Accounting, tax, and business recommendations depend on the specific facts and circumstances of each client.
Business Structure Questions
Entity structure discussions may become important when forming a business, evaluating an S corporation election, adding owners, changing operations, or reviewing payroll and accounting requirements.
Clients We Serve
Entity tax and accounting discussions may be appropriate for entrepreneurs, new business owners, and existing companies reviewing their current structure.
How We Work
The process begins with understanding the proposed business activities and identifying tax and accounting considerations relevant to the owner's circumstances.
Ownership, business activities, expected income, and operational plans are discussed.
Common entity classifications, tax filing, payroll, and accounting considerations are discussed based on the available facts.
Legal issues, governing documents, or other matters requiring attorney involvement are identified where relevant.
After the entity or tax classification decision, appropriate tax registration, payroll, bookkeeping, and filing next steps can be discussed.
Questions & Answers
Common questions about LLCs, S corporations, federal tax classification, California entity considerations, payroll, and business accounting requirements.
No. An LLC is generally a legal entity formed under state law. S corporation status is a federal tax election available to qualifying entities.
A qualifying LLC may elect S corporation tax treatment if applicable requirements are met and a valid election is made.
Accounting Karma can discuss tax and accounting considerations and may assist with certain tax registrations or elections within the engagement scope. Legal formation and legal document issues may require an attorney.
Entity structure may warrant review when forming a business, adding owners, changing operations, experiencing significant income changes, or evaluating payroll and tax considerations.
No. The tax result depends on income, compensation, payroll costs, state taxes, administrative requirements, and the owner's specific facts.
Yes. California entities may have state filing, tax, fee, and administrative requirements separate from federal tax treatment.
Timing depends on the business activity, legal considerations, ownership, and tax circumstances. A review before significant activity begins may be helpful.
Most operating businesses benefit from organized financial records. The appropriate bookkeeping process depends on the business and transaction activity.
Explore More
Explore additional accounting and tax services that may complement your current needs.
Review tax considerations as business income and operations change.
Learn MoreEstablish recurring accounting records for the new or growing business.
Learn MoreCreate a recurring payroll process when the business has employee or owner payroll needs.
Learn MoreContact Accounting Karma to discuss your proposed or existing business structure and the tax and accounting considerations that may be relevant.
Discuss Entity Considerations