Clear legal guidance for taxation, probate, estate planning and business transactional matters in the Kansas City area

A C corporation is a separate legal and tax entity from its owners. How C Corporations Are Taxed Unlike pass through entities, a C corporation: Pays taxes at the corporate level May also result in taxation when profits are distributed to shareholders This is often referred to as double taxation. Key Tax Considerations C corporations may have: Different rules for deductions Separate treatment of dividends Special rules for losses and contributions These rules make C corporatio

A Limited Liability Company (LLC) is one of the most common business structures for small business owners. What an LLC Does An LLC separates your personal assets from your business liabilities. This means: Your personal assets are generally protected from business debts The business is its own legal entity You have flexibility in how the business is managed How an LLC Is Taxed Technically an LLC is taxed as a partnership by default. This means: Business income is reported on

A partnership is a business structure where two or more people operate a business together for profit. How Partnerships Work A partnership is not taxed like a corporation. Instead: The business itself does not pay income tax Income passes through to the partners Each partner reports their share on their personal tax return The Role of the K-1 Each partner receives a Schedule K-1 showing their share of: Income Deductions Gains or losses This is used when filing personal taxes.

Starting a business means making one of your first major legal decisions: choosing a business structure. The structure you choose affects taxes, liability, and how your business operates. Step 1: Understand Your Options Most business owners choose between: LLC S Corporation C Corporation Partnership Each has different legal and tax consequences. Step 2: Consider Liability Protection If you want to protect your personal assets from business debts or lawsuits, you will need a f