Taxation of Sole Proprietorship vs. S-Corp

S-Corp receives a favorable tax treatment when compared to a Sole Proprietorship, by splitting its earnings between Salary and Unearned Distribution, and in which the latter is not subject to Self-Employment tax. The Self-Employment (SE) tax is the employee and employer portions of the FICA tax. The FICA tax has two components: Social Security tax …

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Business Corporate Structures

Taxation and management overhead dictate the choice of business structure. The latter includes, in increasing order of complexity, Sole Proprietorship, LLC, S-Corp and C-Corp. The simplest corporate structure is Sole Proprietorship for which the only paperwork required is capturing your business revenue and expenses in Schedule C. However, this structure offers no separation between personal …

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The FAFSA Process

The FAFSA process discounts the income and assets of students differently than the income and assets of parents in order to calculate the family contribution (EFC) amount. Understanding these components is important to maximizing the financial aid package. The Government-sponsored financial aid programs are summarized in our blog “Types of Financial Aid.” Need-based Federal aid …

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