Common Money Question: S Corp or LLC?

I had the pleasure of stopping by Edina Realty last week to talk with their agents about money messes and how to clean them up.

One question from this group, which comes up all the time, was this:

"Should my business be an S Corporation or an LLC?"

I'm not a tax expert, so I always suggest you talk to your tax accountant about the specifics of your situation.

But, I can give you some pro tips to prepare for that conversation:

✨Now is a great time to reach out to your tax accountant. We're past April 15 and far enough from the fall filing deadlines that they have breathing room!

✨ If you don't understand what they're saying, don't be afraid to speak up! 

Can they give you an example of a real-life scenario or explain it differently? It's ok to ask questions about your money.

✨While you're there, set up a plan to pay your estimates. Future you will be happy you planned ahead to avoid a big tax bill next spring.

Here's another pro move that makes tax time easier...

Keep track of your money all year long instead of putting it off and then scrambling in April.