Choose a business structureOne of the first things that must be considered when starting a business is what type of entity that business will be. This decision will have an impact on your personal and business taxes and the liability that you and your company have for each other's debts and judgments. CORPORATE STRUCTUREOnly corporations and LLCs can chose to have the IRS treat them as S-Corps. An S-Corp allows the profit of the company to pass through to the owner, but any owner who actually does valuable work for the company must pay self employment tax on the portion of their pay that is a direct result of their labor. This must be a "reasonable salary".
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