J.K. Lasser's Small Business Taxes 2023

CHAPTER 1Business Organization

• Sole Proprietorships
• Partnerships and Limited Liability Companies
• S Corporations and Their Shareholder‐Employees
• C Corporations and Their Shareholder‐Employees
• Benefit Corporations
• Employees
• Factors in Choosing Your Form of Business Organization
• Forms of Business Organization Compared
• Changing Your Form of Business

Alert

At the time this book was published, Congress was considering tax changes that could affect 2022 tax returns and planning for 2023. Check the online Supplement in February 2023 at www.jklasser.com or www.BigIdeasForSmallBusiness.com to see what changes have been enacted and when they become effective.

If you have a great idea for a product or a business and are eager to get started, do not let your enthusiasm be the reason you get off on the wrong foot. Take awhile to consider how you will organize your business. The form of organization your business takes controls how income and deductions are reported to the government on a tax return. Sometimes you have a choice of the type of business organization; other times, circumstances limit your choice. If you have not yet set up your business and do have a choice, this discussion will influence your decision on business organization. If you have already set up your business, you may want to consider changing to another form of organization.

According to the Tax Foundation, 95% of all businesses in the United States are organized as sole proprietorships, partnerships, ...