Perhaps you’ve received a letter from the IRS recently and have been informed that they’re beginning the collection process of delinquent tax liability debts and that you are one of those debtors. On the other hand, perhaps you haven’t gotten a letter, but anticipate getting one soon, now that the IRS has resumed collections after the COVID-related pause of last year. Remember, they can go back for ten years to collect from past-due income tax filings. Knowing that you owe a large sum of delinquent back taxes without realizing precisely what can or will happen next could be keeping you up at night.
Starting a business? Whether you are just getting started or have outgrown your original tax structure, there are many business entities to choose from, with pros and cons for each one. Which type is best for your business depends on what products or services you offer, how much money you earn, whether or not you own the business alone, how many employees you have, what risk or liability you are willing to absorb, and other factors. Here are some common business entity choices and a few of the advantages and disadvantages of each.