SUMM IT UP

Financials 101: Which type of tax entity is best for your business?

Episode Summary

As a small business, your salon company has options when it comes to paying taxes. But are you chosing the right one?

Episode Notes

As a small business, your salon company has options when it comes to paying taxes. But are you chosing the right one? Whether you're in a parternship, an S corp or a C corp, the best entity for your business might not be the same as the salon across town, or even the same as it was a few years ago when you had four chairs instead of eight. For the second in our Financials 101 series, Boyum Associates accounting wiz Chris Wittich breaks down everything you need to know to make an informed decision. 

You’ll hear:

• The differences between Schedule C, partnerships, S Corps, and C Corps
• Why S Corps are often the go-to for salons—and when it’s time to make the switch
• How state laws and the new FICA tip credit can impact your decision
• The importance of paying yourself a “reasonable salary” as a salon owner (and what that really means)
• Why setting up an LLC is a smart move, even if you’re just starting out
• Common mistakes salon owners make with their taxes

Get more tips and reach out to Chris Wittich at salon.cpa

Learn more about the FICA tax tip credit and tax-free tips!