Thank you to CO–U.S. Chamber of Commerce for providing the content on What to Know About Taxes When You’re Running a Family Business.
Taxes apply differently to spouses, children, and other relatives depending on your business entity, ages of family members, and wages.
According to the U.S. Bureau of the Census, about 90% of American businesses are family-owned or controlled. Family businesses account for half of the nation’s employment, making taxes related to running a family business a pertinent issue for many small business owners. If you’re running a family business, here are some tax-related tips you need to know to optimize your deductions and maximize your return.
Taxes apply differently depending on your business entity
The IRS has different rules for family-run businesses depending on the type of entity your business operates as. Schedule C businesses, which include sole proprietorships, husband-wife partnerships, or LLCs treated as sole proprietorships for tax purposes, have different rules than S or C corporations.
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CO–by the U.S. Chamber of Commerce.
