In this episode, Melissa and Eric talk about the importance of sending your vendors 1099 forms and while this year’s deadline has passed it’s never too early to start preparing for next year by sending vendors W-9 forms to get the necessary information.
On a bigger picture context, learn the difference between different types of company structures and the reasons why choosing a certain type of organizational structure could greatly influence your tax situation. Whether you are a sole proprietor, a C-corp, an S-corp or a partnership there are specific rules and guidelines involved that you need to understand. You need to be very aware of the limitations and benefits of the allocation you choose.
The discussion outlines a simple breakdown of the requirements and differences in the structure of choice and the significance of your consideration once the business is profitable. Every small business should understand what their structure is and how it fits into their longer term plans.
For more information and to find resources from the show, visit www.busybeeadvisors.com.