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Question
Will you have a low to run a business under an LLC or S Corporation if you don't have any employees
AI accountant’s answer:
Deciding whether to run a business under an LLC or an S Corporation depends on your specific situation and priorities. Both structures have their advantages and disadvantages. LLC Advantages: 1. Simplicity: Setting up and managing an LLC is generally simpler than an S Corporation, with less compliance requirements and paperwork. 2. Flexibility in profit distribution: With an LLC, you have more flexibility in distributing profits among members. 3. Pass-through taxation: LLCs benefit from pass-through taxation, avoiding double taxation on profits. LLC Disadvantages: 1. Self-employment tax: LLC members are generally considered self-employed, and may be subject to self-employment tax on their share of the profits. S Corporation Advantages: 1. Pass-through taxation: Like LLCs, S Corporations also benefit from pass-through taxation. 2. Potential tax savings: S Corporation shareholders can split the profits into salary and dividends, which may potentially reduce self-employment tax. S Corporation Disadvantages: 1. More complex setup: Establishing and maintaining an S Corporation requires more paperwork, formalities, and compliance than an LLC. 2. Ownership restrictions: S Corporations have restrictions on the number of shareholders, and are limited to U.S. citizens or resident aliens, among other requirements. 3. Less flexibility in profit distribution: S Corporation shareholders receive profits based on their percentage of ownership, limiting the ability to distribute profits unevenly. Ultimately, the best structure for your business will depend on factors such as business complexity, growth plans, and tax planning strategies. It's important to carefully evaluate the advantages and disadvantages of each structure in relation to your specific situation.
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Ieva Ivanauskas, EA
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Keeper’s AI Accountant

This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

Find write-offs.
File taxes.

Keeper helps independent contractors and freelancers discover tax deductions and file taxes.

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Ask an AI Accountant

A free tool by

Question
This is some text inside of a div block.
AI accountant’s answer:

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Comment from reviewer
This is some text inside of a div block.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Not Correct.
Icon check
Looks good

Keeper’s AI Accountant

This AI accountant is powered by GPT-4, but has up-to-date knowledge of tax law. It’s been trained on federal and state tax updates for 2023. With credentialed tax professionals fact-checking its responses, it applies IRS rules to real-world situations.

Find write-offs.
File taxes.

Keeper helps independent contractors and freelancers discover tax deductions and file taxes.

Get started