To those unfamiliar with accounting practices, some of the tax related terminology is indistinguishable. This month, we are explaining what these terms mean, and more specifically, what they mean for you.
Levy: An IRS levy allows the legal seizure of your property in order to rectify any tax debt. This includes garnishing wages, removing money from your bank account, seizing your vehicles, home and other personal property, such as a boat.
LLC: This stands for limited liability company, meaning the company has the limited liability features of a corporation and the tax efficiencies and flexibility of a partnership. It is a sort of hybrid company.
DBA: This is an easy one, it stands for “doing business as”.
S corporations: They are corporations that pass corporate income and losses to their shareholders for federal tax purposes. They must not have more than 100 shareholders and have only one class of stock.