Tax Advantages of Pass-through Entities

Every business owner must fully understand the tax obligations of his or her business. In fact, taxation for business owners is quite important and often it becomes part of the planning, research, and development phase.

Business owners of pass through entities pay taxes on their personal income tax returns because pass through entities do not get taxed! That's right, pass through entities are not taxed by the government. While C corporations are subject to its own income tax resulting in double taxation: corporation's income is taxed and owners are taxed on income received from the corporation via dividends or profits distributions. Under pass through entities, the entity itself is not subject to any taxes and business owners can deduct up to 20% of qualified business income from the entire income before applying the appropriate tax bracket; resulting in greater savings!

Singh Tax Services can help you select the appropriate structure for your business. We can also help your business re-structure to maximize tax advantages. To schedule your free consultation, please contact Singh Tax Services at (661) 599-8884 or email us at singhtaxcenter@gmail.com.

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