You may think you don't own a particular business interest, but the IRS might disagree. Under constructive ownership rules, the tax code can attribute ownership to you based on family relationships or entity structures. Understanding these rules before they impact your tax strategy is essential for business owners with family ties, trusts, or complex ownership structures.

Banks want an extra layer of security for business loans, and a personal guarantee delivers it - but for partnership owners, there's a hidden tax advantage most overlook. This synthetic capital injection can turn a necessary business risk into meaningful tax leverage, provided you understand the mechanics and monitor the potential pitfalls.

Making the jump to S-corporation status probably wasn't an impulse decision; you looked at your books, saw profits piling up well beyond the salary you pay yourself, and decided it was time to stop paying self-employment tax on every extra dollar. However, the S election is more than just a single signature on Form 2553; it introduces a new set of rules.

Non-public pass-through companies can't flash the same liquid stock options that publicly traded C-corporations deploy, but a profits interest solves the problem by letting newcomers participate only in growth that occurs after the grant date - with no immediate tax bill for either party. Learn more in our article.

When a pass-through business takes out a loan at the entity level and immediately distributes the borrowed funds to its owners, this is considered a debt-financed distribution. This maneuver provides owners with immediate liquidity without triggering a current tax bill, as long as they have sufficient tax basis to cover the distribution.