S-corp vs LLC for professional services
Most professional services firms operate as LLCs or S-corps. The choice affects self-employment tax, distribution flexibility, and partner buy-in / buy-out economics. AION's tax team runs the math against your specific facts before recommending.
Partner economics that hold up
Capital accounts, K-1s, guaranteed payments, profit allocations, hot-asset Section 751 issues on partner buy-outs — the partnership-tax detail that catches firms when senior partners exit. AION's bookkeeping and tax modules together produce K-1s that don't require partner-by-partner reconstruction at year-end.
- Capital account maintenance per IRS partnership-tax rules
- Section 199A QBI deduction optimization for SSTBs
- Section 736 payments on partner retirement properly characterized
- Multi-tier partnership structures supported