Making the switch from employee to business owner requires some getting used to. One of those adjustments is understanding the difference between the income reported on a K-1 and the amount of cash distributions received. Let’s look at some of the reasons why this happens. Taxable income is not always the same as cashflow When […]

No one likes to pay more in taxes than they have to. The desire to minimize taxes makes S-corporations a great choice for many small businesses. Like all pass-through entities, net income of an S-corp is passed through to the owners to be taxed on their personal tax returns. But unlike sole proprietorships and the […]