Brian Bailey Knows Business

Small Business Success Starts with Business Planning Business Is In My Blood

I’ve been extremely lucky. I was raised by parents who took the time to pass on their wisdom. My mother, an accountant, has incredible business talent. She used that talent to help my father keep his own books in shape. While working outside the home and working to help my father succeed in his own business, she also managed to find time to recognize and gracefully utilize natural “teaching moments” at home while raising my brother and me.

My father, like my mother, is an inspiration to me. He was a plumber and shared his business wisdom freely and put me to work at a very young age in his entrepreneurial business. By the time I was in high school, he allowed me to take on more responsibility and learn more of his business. He made sure I would have the experience and work ethic that most of my peers didn’t.

I had the opportunity to repay him when his health began to fail. Together, we were able to keep his business open longer than he would have been able to manage alone. But, as his health worsened, he had a choice to make: he could sign up for disability or he could change his career path to a business model he could manage with health issues. My father went back to school in his late 40s and got his degree in Social Work. He became a Family Therapist and retired from that career in his late 60s. Continue reading

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What Are The Benefits of an S-Corp?

What is an S Corporation?

Advantages of Creating an S Corporation

Advantages of Creating an S Corporation

An S corporation is treated by the federal tax system as a pass-through entity in the eyes of the IRS. To achieve this, your business must file Articles of Incorporation with the Secretary of State. Kentucky corporations are also required to file one copy of their Articles of Incorporation in the same county where the registered office is located.

Your company will then issue stock and the business will be governed as a corporation. The shareholders (those holding your stock) are the owners, but are protected from personal liability from the actions of the corporation. For instance, a shareholder’s personal property, bank accounts and other assets cannot be seized to pay off the corporation’s liabilities.

Income and losses are passed on to the shareholders. Each shareholder is responsible for the income or loss received by the corporation, on their own individual tax return. The S corporation eliminates double-taxation – once on the corporate level and once on the individual level, which happens with a regular corporation. Continue reading

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