Of course you have been down the road INC or LLC? Well we will not go into the details of which one is better but here is a tip you may have not known:
You can assign Tax Credits to each member or owner based on a change in the operating agreement
Why is this important? Let look at the following example: Super Cool LLC, has two owners. One at 40% another at 60%. They were able to secure a $100,000 tax credit. Naturally Owner 1 gets $40,000 and Owner 2 gets $60,000. Both of these amounts flow onto their K-1, however Owner 1 has been busy with his investment activities and generated a larger liability this year, and Owner 2 cannot use the whole credit, since he/she had a loss in his/her business. Naturally Owner 1 can take a greater advantage of the tax credit and upon mutual agreement they decide to change their percentage to 80/20 for current taxable year. Therefore Owner 1 gets $80,000 in tax credit and Owner 2 gets $20,000. This arrangement will also flow income to the 2 owners with their respective percentages, but we will just assume it is very low this year.
You can still do it in an INC, but it is a bit more complicated.
Let us know if we can look up a tax credit for you!
As always we must add the following: Every situation is different, please call us or contact your Certified Public Accountant on any financial/accounting advise.