Numerous small businesses today are organized as a limited liability company (LLC). An LLC offers flexibility when organizing the management and economic structure of an entity. Due in large part to this flexibility, the LLC has become the most popular choice of entity to form when seeking limited liability protection for new small businesses. Below we’ve put together some information to help you decide whether to elect to be an LLC taxed as an S corporation.

Key Distinctions between S Corporations and LLCs

When deciding how your small business should be taxed it is important to understand the distinctions between S corporations and LLCs. An S corporation refers to the tax treatment of an entity. An S corporation is not a type…

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As your small business grows, you may enter new markets, including expanding your company internationally. If you do expand into international markets, you may look to hire independent contractors in a foreign country. When hiring an independent contractor in another country, it is important to understand some of the key considerations before you move forward with the relationship. Today’s post highlights a few key considerations when hiring an independent contractor abroad.

Know the Rules

Before you enter into any new market, you should become familiar with the regulations that will impact your business. When it comes to hiring an independent contractor, you should become familiar with the various employment and tax regulations that will be triggered by your new hire. Different countries…

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“Double taxation” refers to the two “levels” of tax that are assessed by the IRS on profits earned by C Corporations–a “C Corporation” simply refers to a corporation that is taxed according to subchapter “C” of the US Tax Code–or other entities that elect to be taxed as C Corporations. The first level of taxation is at the corporate level; these taxes are assessed on the corporation’s profits before the company distributes any dividends to shareholders. The second level of taxation applies at the individual level when the corporation distributes dividends to individual shareholders.

How to Avoid Double Taxation

Entities that elect to be taxed as C Corporations (or are taxed a C Corporations by default) are subject to double taxation. Businesses…

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Need to know the basics about reseller permits in Washington? The Washington Department of Revenue actually has some really helpful information on its site, but we’ll also highlight today some of the key things to know:

Do you need a reseller permit?
You do if (1) you resell goods, and (2) you don’t want to pay sales tax on the goods you’re going to resell.

What does a reseller permit do?
A reseller permit allows retailers, wholesalers, and manufacturers using component parts to purchase goods that will later be resold to customers without paying sales tax on the initial purchase of the goods.

How much does a reseller permit cost?
A reseller permit is free. You just complete a form either online or by downloading and…

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