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A sole proprietorship is an unincorporated business owned by one person. The business is not a separate business entity. All the business income and expenses are considered to be your income and your expenses. You can freely move into or move out from your business without any tax consequences. However, it always recommends that the business books be kept separate […]

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An S corporation is a pass-through entity and does not pay federal income tax. All profits, losses, and other pass through items are allocated according to each shareholder’s proportionate shares of stock.  Each stockholder will receive a “K-1″ tax form indicating the stockholder(s) pro-rata share of profits. The shareholder(s) report their share of profit on their […]

Read More… from Five Ways to Move Your Money out from Your S Corporation