Partnerships, LLCs treated as partnerships, and S corporations are widely chosen by entrepreneurs as favored business structures due to their distinct tax and nontax advantages.  However, there is a disadvantage to these structures that business owners may want to consider; the number of tax-favored or tax-free fringe benefits available to owner-entrepreneurs of passthroughs is limited compared to those that are available to shareholder-employees of C corporations.   This article discusses those benefits that can be made available on a tax-preferred basis to partners, members of LLCs treated as partnerships, and substantial (more than 2%) shareholders of S corporations.  Click on Full Article to read more.

By Rebecca M. Tom, CPA
Parent, McLaughlin & Nangle, CPA's Inc.