by Blair Butters | Oct 28, 2020 | Uncategorized
When starting a small business, one of the most important decisions you will make up-front is how you’re going to structure and register it with the state and the federal government. How your business is structured will affect how you are categorized for income tax purposes, so having all the information and making an informed decision will save you any surprises when it comes to tax season, not to mention the cost of having to change the designation at a later date. So how do you know which structure is right for you? Your business structure is determined by the type of organization you select and the number of owners within the business. We will focus here on the income tax aspects of the entity choice for small start-up businesses reviewing three common structures – sole proprietorships, general partnerships, and Limited Liability Companies (LLCs). We will not consider the legal ramifications of the entity choice as you will want to consult with an attorney regarding the legal aspects of the different entities. We will also not consider other taxation issues such as sales, use or excise taxes, nor will we discuss the taxation rules of rental activities. Here’s a basic breakdown of the income tax characteristics of various small, non-corporate, business entities… Sole Proprietorship If you are the sole owner, registering as a sole proprietorship is one of the most simple and common ways to structure your business. In fact, you are automatically classified as being a sole proprietorship if you carry out business activities but are not registered as any other kind. This structure gives you complete control...
by Blair Butters | Oct 15, 2020 | Client Features
Today we are excited to introduce you to Steven (Steve) Clausen, owner and operator of Clausen Automotive and P&B Truck Accessories. The Road to Entrepreneurship Fueled by a desire to be self-employed and to use the skills he learned working at Chevrolet, Steve set out to purchase his own shop in 1975. The garage was originally located on Milwaukee Street in Madison, WI. Back then, Steve worked on cars and trucks that had carburetors, points, and plugs. All of these are now things of the past and Clausen Automotive has since transitioned to its current location on Stoughton Road, where the types of cars they work on have also evolved… More on that to come. Next to Clausen Automotive sat a retail shop: P&B Truck Accessories. The shop was owned by a company named Penda, who had originally purchased it from 2 gentlemen by the names of Paris and Burns (where the P&B came from). After a few years in business, Penda decided to stick with manufacturing, so the retail business, which sat in a building adjacent to Clausen Automotive, went up for sale. In January of 1990, Steve and his wife decided it would be the perfect opportunity to expand their business. They bought P&B Truck Accessories, which is now the largest truck accessories store in the city of Madison. Changing Gears: Innovation and Success One of the most poignant aspects of Clausen Automotive and P&B Truck Accessories is that they stay nimble and relevant in the current market by adapting to new challenges and industry upgrades. This is a process Steve has prioritized since his first days...
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