Entity selection and tax planning
How your business is set up decides how it's taxed. We compare the options against your actual numbers, at startup and again as the business grows.
The right setup changes as you grow
How your business is set up decides how it's taxed and how much protection you have. The right answer at startup isn't always the right answer five years later.
We look at LLCs, S-corps, partnerships and corporations against your real income and expenses, with CPA services when the question calls for it. When legal paperwork is involved, we work alongside your attorney.
What we compare
- Self-employment tax under each option
- What a reasonable salary looks like as an S-corp
- Filing costs and paperwork each year
- How the setup affects a future sale
What we help with
Choosing an entity
Sole proprietor, LLC, partnership, S-corp or C-corp, compared side by side with your own numbers.
S-corp elections
Whether your profit is high enough for an S-corp to save you money, and what changes once you elect.
New business setup
IRS and Montana registration and a plan for estimated taxes, sorted out before your first sale.
Ownership changes
Adding a partner, buying someone out or changing who owns what, and how each option is taxed.
A plan for the first year
Estimated payments and the records to keep so your first return goes smoothly.
Planning ahead of a sale
How the business is set up affects the tax bill when you sell. It's worth a look years ahead.
When it's worth a look
Most owners pick an entity once and never revisit it. A short meeting will tell you whether yours still fits.
- You're starting a business and haven't filed anything yet.
- Your profit has grown and you're wondering about an S-corp.
- You're adding a partner or changing who owns what.
- You think the current setup is costing you in taxes.
- You're starting to think about selling or handing the business on.
Entity questions
Do you file the paperwork with the state?
We handle the tax side, including IRS elections and Montana tax registration. When an operating agreement or other legal documents are needed, we work with your attorney.
Is an S-corp always better once I’m making money?
No. It depends on your profit, what you pay yourself and the extra payroll and filing work that comes with it. We'll run the numbers both ways.
Can I change my entity later?
Usually, yes. Some changes are simple and some have tax costs, so it's worth talking it through before you file anything.
How much does it cost?
It depends on how complicated your situation is. We'll talk it through and give you a price before any work starts.
Find out if your setup still fits
Give us a call or send us a message.