ACap ReCap: Financial and Tax Tips
ACap Advisors & Accountants is a boutique fee-only Wealth Management and full-service Accounting firm based in Los Angeles. We handle everything from taxes to investments to risk management and estate planning, providing comprehensive, unbiased financial advice in one location. In our ACap ReCap episodes, we discuss the latest financial news, answer the frequently received financial questions, and share financial tips with you. If you have questions or suggestions email us hello@acapam.com Find more details at https://www.acapam.com/ #financialadvisor #fiduciaryfinancialadvisor #finance #financial #money #wealthmanagement #assetmanagement #investment #tax #taxplanning
ACap ReCap: Financial and Tax Tips
S Corp, C Corp, or LLC? The One Decision That Can Make or Break Your Business
Confused about LLC vs S corp vs C corp? In this episode, Ara (wealth manager & CPA) breaks down how entity choice impacts taxes, liability, investors, and growth.
Make a smart decision now to avoid painful (and expensive) fixes later.
Starting a business is thrilling—until you hit the wall of entity selection. In this clear, no-jargon walkthrough, Ara explains how to choose the right structure for your goals. You’ll learn how entity type affects self-employment tax, liability protection, investor appeal, stock options, QSBS, QBI, and more. We cover the real-world tradeoffs of Sole Proprietorships, Partnerships, C Corporations, S Corporations, and LLCs—plus when each one shines.
What you’ll learn
- The key questions to answer before picking an entity (owners, investors, revenue, industry, role, citizenship, stock incentives, IPO plans)
- Sole Proprietorship: simplicity vs. unlimited liability and self-employment tax
- Partnerships: flexible profit splits, K-1s, and common pitfalls (conflicts, continuity, guaranteed payments)
- C Corporations: investor-friendly, multiple share classes, QSBS potential—and double taxation
- S Corporations: pass-through taxation, payroll/tax efficiencies, QBI benefits—and strict ownership limits
- LLCs: the hybrid chameleon (disregarded, partnership, S- or C-corp election) and how to match the tax status to your goals
- Practical “fit” examples: side hustles, real estate, professional services, venture-backed growth, and family businesses
Need help choosing your entity or planning a tax-efficient setup? Contact Ara’s team: https://www.acapam.com/contact/
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