Benefits of S-Corp vs LLC


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Benefits of S-Corp vs LLC

The major benefit of an s-corp vs an LLC is the FICA tax advantage. If a s-corp reports $1.0m in annual profit, 50% might flow to direct owners via a salary while the remaining will be paid via profit distribution.

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What is business strategy?

At its most basic level a company can differentiate its offering or compete on cost. Strategies that blend the two create earnings headwinds. Resources are channeled inefficiently. The productivity of the strategy is maximized when a company is solely a … Continue reading

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Low rate environment

With the federal funds rate at its lowest level in 60 years, the Federal Reserve is creating an opportunity for those business owners looking for debt to build and grow. If you borrow $1m today at a 10-year 4.5% annuity … Continue reading

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Funding a startup

For small business owners, sourcing unsecured financing is extremely hard. Commercial banks are very hesitant to assume all the risk. The SBA steps in and does play a role here. Here are a few steps to take if searching for … Continue reading

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Looking for growth

There are an infinite number of ways to maximize sales. Besides the obvious drivers, there are thousands of externalities that influence a company’s ability to grow. Most of these are not “controllable”. They’re a fact of doing business. Reference the … Continue reading

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Calculating the discount rate

Calculating the discount rate for a potential investment in a small business is not easy. While today’s interest rates may be low, the real rate outside investors will require will not be.