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September 7, 2023

You are an enrolled agent with a new tax client Xavier Garcia. Xavier plans to start a shipping supply business like the UPS Store. Xavier wants to know what entity structure would be b

You are an enrolled agent with a new tax client Xavier Garcia. Xavier plans to start a shipping supply business like the UPS Store. Xavier wants to know what entity structure would be best for his business. He will be the only owner, but in the future, he may want to add partners or stockholders depending on your recommendations.

In addition, Xavier wants to know if he should track inventory for his store and which inventory identification and valuation method would be right for his business. Finally, Xavier wants to know about the tax advantages for each business entity and your recommendation on recording inventory.

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