Corporation vs. LLC (Limited Liability Company)
The most common question we get from a new business is "Should
I be a corporation or is a LLC better?"
Every situation is unique, but in most case we find the
LLC to fit most situations. There are several reasons for
this.
A LLC is relatively inexpensive to set up. The State of
Wisconsin currently charges $130 to become a LLC and then
an annual fee of $40 to stay registered.
The IRS allows the taxpayer to make an election to choose
how you would like the LLC taxed within certain guidelines.
You can still elect to be taxed as a corporation or a S-Corporation
even if you are organized as a LLC.
A LLC is relatively easy to maintain. Unlike a corporation,
you do not need a board of directors or shareholder meetings.
Again, every situation is unique and we can help you decide
which entity is best for you.
Vehicles - Actual Expenses vs. Miles
Another hot topic for most business owners is how they should
expense their auto. Should they use mileage (Currently 48.5
cents per mile) or should they deduct the actual expenses.
Every situation is different and choosing which method is
better depends on:
How much are you driving the vehicle for business
How much did the vehicle cost
Is it a car or truck
Regardless of which method is chosen, it is important to
track your business miles. You need to be able to provide
some manner of documentation as to how much the vehicle is
used for business.
We help our clients pick the method that is best for them.
Retirement Savings
It is safe to say that the most important thing about a retirement
plan is that you at least do something. It's very hard
to make up for lost time when it comes to funding a plan.
Picking which plan is right for your business will hinge on
a variety of factors:
How much do you want to save
How many employees do you have
Do your employees want to contribute to a plan
If we know the answers to these questions we can work with
your retirement specialist to set up the plan that best fits
your needs.
