What Happens When There's More Than One Owner

What Happens When There's More Than One Owner

If you and someone else are splitting profits, you may already be in a partnership — whether you filed anything or not. In this episode, Lauren covers how partnerships form, how Form 1065 works, capital account tracking, partner basis, guaranteed payments, and the liability realities of operating with another person. She also covers the four scenarios every partnership agreement must address before the business earns its first dollar: death, disability, divorce, and departure. Partnerships offer flexibility that other structures don't. They also require the most careful documentation of any structure covered this season.

C-Corporations — When Double Taxation Is Actually the Smart Move

C-corps have a reputation for double taxation, and for most small businesses, that reputation is earned. But the C-corp exists for a reason — and for certain business models, it's the right call. In this episode, Lauren covers how C-corp taxation actually works, the strategic value of retained earnings, why institutional capital almost always requires a C-corp structure, and Section 1202 Qualified Small Business Stock — a provision that can mean a tax-free exit for qualifying founders. Most small businesses don't need this structure. But knowing when it fits is part of making informed decisions.

Running an S-Corp — Payroll, Distributions, and What You Can't Skip

The math made sense. The election is filed. Now what? In this episode, Lauren covers the operational mechanics of running an S-corp — payroll setup and schedules, quarterly 941 filings, the correct order of salary versus distributions, shareholder basis tracking, and the corporate formalities that keep the structure valid. She also covers what happens when business owners elect too early: the compliance costs exceed the tax savings, and the election starts costing money instead of saving it.

Reasonable Compensation — The Number That Makes or Breaks Your S-Corp

If you're an S-corp owner, your salary is the most important number on your return. Too low, and the IRS can reclassify your distributions as wages, assess back payroll taxes, and add penalties that wipe out whatever the election was supposed to save you. In this episode, Lauren covers what "reasonable compensation" actually means, how the IRS evaluates it, the factors the IRS and courts use to determine whether a salary holds up, and how to document your number so it's defensible if it's ever questioned.

What Is an S-Corp? (It's Not What You Think)

The S-corp is the most requested topic Lauren gets — and the most misunderstood. In this episode, she clears up the biggest misconception first: you don't form an S-corp. You elect it. It's a federal tax classification, not a business entity. Lauren explains how the election works mechanically, what changes on the tax side, and then walks through the break-even math that tells you whether it actually saves money for your specific business — because the answer isn't always yes.