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Farm Credit of the Virginias recently determined that there was a ballot mailing list error related to the 2021 Board of Directors and nominating committee election. As a result, the ballots for this election sent to the eligible voting stockholders on October 12, 2021, must be resent to the entirety of the mailing list, and all of the votes must be recast. New ballots will be mailed to all voting stockholders on or about November 19, 2021, and voting stockholders should be on the lookout for a new replacement ballot in the mail. Click here to view the entire notice to stockholders.

 

Business Structures

When beginning a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file. (irs.gov)

The most common forms of business are:

  • Sole Proprietorship
  • Partnership
  • Corporation
  • S Corporation
  • Limited Liability Company (LLC) is a business structure allowed by state statute.

Legal and tax considerations enter into selecting a business structure. (irs.gov, visit site)

Refer to your accountant and/or attorney for advice on the best business structure for your operation.

Business Structures*

The following business structure* information has been gathered from the IRS website, here

Sole Proprietorships

A sole proprietor is someone who owns an unincorporated business by himself or herself. However, if you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation. (irs.gov)

Click here to learn more and to view the forms that you may be required to file.

Partnerships

A partnership is the relationship between two or more people to do trade or business. Each person contributes money, property, labor or skill, and shares in the profits and losses of the business. (irs.gov)

Click here to learn more and to view forms that you may be required to file.

Corporations

In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's capital stock. A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income. A corporation can also take special deductions. For federal income tax purposes, a C corporation is recognized as a separate taxpaying entity. A corporation conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders. (irs.gov)

Click here to learn more and to view forms that you may be required to file.

S Corporations

S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income at the entity level. (irs.gov)

Click here to learn more and to view the forms that you may be required to file.

Limited Liability Company (LLC)

A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, you should check with your state if you are interested in starting a Limited Liability Company. Owners of an LLC are called members. Most states do not restrict ownership, so members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit “single-member” LLCs, those having only one owner. (irs.gov)

Click here to learn more and to view the forms that you may be required to file.

*Refer to your accountant and/or attorney for advice on the best business structure for your operation.

Additional Information

Small Business Taxes

IRS Virtual Workshop - Watch video

IRS Small Business Resources

Small business and self-employed tax center - Visit IRS site