Sauder & Stoltzfus Blog

Why You Should Consider Converting Your Business to an LLC

By Nevin Beiler, Attorney

A large part of my law practice consists of forming and restructuring business entities for business owners. People often ask me what would be the best form of entity for their business. Although there are exceptions, in the vast majority of cases the answer to that question is a Limited Liability Company (“LLC”). If you have a business that is located in Pennsylvania and is structured as something other than an LLC, you may want to at least consider restructuring it. This is especially true if your business is a sole proprietorship or a general partnership.

In this article I will explain the main benefits of being structured as an LLC. But first, a quick story about some clients I assisted in restructuring their business from a general partnership to an LLC. As always, I have changed the names and some details in order to protect the confidentiality of my clients.

A father and his three sons came to my office one day to discuss restructuring their construction business. For the past 15 years they had been operating as a general partnership. At the time of the meeting, the father owned 90% of the business, his three sons owned 2% each, and two other workers owned 2% each.

In the past, the sons and two other workers had been listed as partners mainly to avoid payroll taxes. The father wanted to increase his son’s percentage of ownership and give them more management responsibilities. He was also considering putting the other two workers on payroll because he had heard that the strategy of having workers be low-percentage partners to avoid payroll taxes was causing some partnerships to incur fines and penalties in Pennsylvania Unemployment Tax audits (he was right about that).

The father had also heard somewhere that he should consider changing from being a general partnership to an LLC partnership, but he wasn’t totally sure why. I explained that one reason he should convert to an LLC partnership was to limit the personal liability of the partners for lawsuits against the business. He seemed to have a “lightbulb moment” when I said that, and said, “do you mean that if the business is sued all the money in my sons’ personal bank accounts would be at risk”? When I answered “yes” and also said that the personal assets of his other workers were also at risk, he become very concerned. His sons had worked hard for the business since their teen years, and had each developed sizable savings accounts. He was also uncomfortable with the thought that his workers, who functioned essentially like employees, were sharing in the risk of the business due to the fact that they were 2% general partners.

The realization that the way his business was structured was putting his sons’ savings and his employees at risk provided a substantial motivation for the father to change the general partnership to an LLC partnership. As part of that change, he put the other workers on payroll and increased his son’s percentages of ownership in the business. He also increased the liability insurance of the business. The good news for them was that converting a general partnership to an LLC partnership is fairly simply in Pennsylvania. The bad news was that the conversion and the limited liability it brought would only apply to the future. Any potential lawsuits for activities prior to the date of the conversion to an LLC would still put the partner’s personal assets at risk.

The Benefits of a Limited Liability Company

The above story illustrates one of the main benefits that an LLC has over sole proprietorships, general partnerships, and general partners in limited partnerships, which is that partners in an LLC (typically called “members”) do not have personal liability for lawsuits against the LLC. The members of an LLC also generally do not have personal liability for the debts or other liabilities of an LLC, unless they sign a personal guarantee for the liability. They are at risk of losing the value of their share of the business if an accident or lawsuit is not covered by the business’s insurance policy, but their personal assets would be protected.

On the other hand, the personal assets of all the partners in a general partnership (including a 1% partner) can be fully at risk for the liabilities of the partnership (including loans, audits assessments, lawsuits, etc.), regardless of which general partner of the partnership incurred the liability or caused the lawsuit. The same is true of sole proprietors, who are generally fully responsible for both their own actions, and the actions of their employees during the workday. Most businesses should and do carry liability insurance that will cover unexpected accidents and lawsuits. However, not everything can be covered by insurance, and sometimes insurance coverage limits are lower than a lawsuit amount, so having the extra protection of the LLC structure can be a big help in protecting the owners of the business when things go majorly wrong.

Another benefit of the LLC structure is its administrative and structural simplicity and flexibility. Unlike corporations (which were more common before LLCs became available), LLCs do not require many formalities like annual meetings, electing directors, director meetings, etc. An LLC can require certain formalities in its Operating Agreement, but very few formalities are required by law for LLCs.

Similar to a general partnership, an LLC can be structured as “member managed” (meaning it is managed by all its members) or “manager managed” (meaning the members elect one or more managers from among or outside the membership to manage the LLC). The provisions regarding voting, compensation, profit sharing, buy/sell agreements, etc., are all very flexible in an LLC and can be customized in the LLC’s Operating Agreement to suit the needs of the members.

LLC’s are also very flexible when it comes to how they are taxed. A single member LLC is normally taxed as a disregarded entity, meaning that the income and expenses of the LLC are reported on the appropriate schedule of the owner’s Form 1040 (e.g. on Schedule C). However, a single member LLC can elect to be taxed as an S Corp or C Corp if that would be advantageous to its owners (not common for those exempt from FICA taxes).

A partnership LLC (an LLC with more than one member), like a general partnership, is normally taxed as a pass-through entity, meaning that the partnership entity files an information tax return but all income taxes are paid by the individual members. However, the members can choose to have the partnership be taxed as an S Corp or C Corp if that would be advantageous to the members. The flexibility to choose between the full range of tax elections could become an advantage over corporations, which are limited to C Corp and S Corp tax options. With the Qualified Business Income Deduction (new for the 2018 tax year), more small corporations may want to consider whether changing their structure to an LLC would be advantageous. Doing so would allow them to be taxed as a disregarded entity (one owner) or partnership (multiple owners) and potentially maximize the QBI Deduction.

Another advantage, though perhaps smaller than the ones discussed above, is that registering a business as an LLC provides more protection for the registered business name than filing a fictitious name registration (as is required for sole proprietorships and general partnerships). Many business owners are surprised when I tell them this, but the reality is that filing a fictitious name registration does not result in exclusive use of that name in Pennsylvania (and probably many other states). If only a fictitious name registration is filed in Pennsylvania, another business owner could come along and register the same name as an LLC or Corporation (or other registered entity). But once a name is registered as an LLC (or other registered entity) in Pennsylvania, nobody can come along and register a business under that same name in Pennsylvania. (Businesses that want exclusive use of a name in multiple states may want to consider registering a Trademark for their name.)

Starting an LLC or Converting to an LLC

Starting an LLC in Pennsylvania is fairly simply. New LLCs in Pennsylvania do not require legal advertising (which is required for fictitious names and new corporations), so that helps to keep the cost down. Also, Pennsylvania has a conversion process by which a general partnership can convert to an LLC partnership without re-titling assets or getting a new EIN number. This greatly simplifies the administrative hassle of these conversions.

An existing sole proprietorship business will generally need a new EIN in order to change to a single member LLC. This means a little more administrative burden (usually involving a new bank account, new payroll accounts if there are employees, new PA Dept. of Revenue accounts, and transferring business assets to the new LLC), but it is very manageable for most businesses.

When starting a new business or changing your business structure, you should seek good legal advice and tax advice. Setting up a good structure for your business will minimize complications down the road, and can position you for the best legal protection and tax savings.

This article was originally printed in the Plain Communities Business Exchange.

Nevin Beiler is an attorney licensed to practice law in Pennsylvania (no other states). He practices primarily in the areas of wills & trusts, settling estates, and business formations & agreements. Nevin and his wife Nancy are part of the conservative Mennonite community, and Nevin previously served as the in-house accountant for Anabaptist Financial before leaving to become an attorney. Nevin’s office is located at 105 S Hoover Ave,  New Holland, PA 17557, and he can be contacted by email at info@beilerlegalservices.com or by phone at 717-287-1688. More information can be found at www.beilerlegalservices.com.

Disclaimer: This article is general in nature and is not intended to provide specific legal or tax advice. Please contact Nevin or another attorney licensed in your state to discuss your specific legal questions.

Preface: Parents should have received another round of monthly child tax credit payments recently. The first three payments were sent on July 15, August 15 and September 15, while the fourth payment was sent on October 15. 

American Rescue Plan: Advanced Child Tax Credit

The American Rescue Plan Act of 2021 modifies a number of tax provisions, including a third round of direct budget-bolstering tax payments, enhancements of many personal tax credits meant to benefit people with lower incomes and children, extensions of highly popular payroll tax credits for employers first instituted at the beginning of the pandemic, and changes related to retirement plan funding. This blog explains the changes to the child tax credit that may affect you.

 

The American Rescue Plan includes a significant overhaul of the child tax credit, but only for the 2021 tax year. Under prior tax laws, the amount of the child tax credit was equal to $2,000 per child, but only $1,000 of that amount was refundable (meaning that the taxpayer receives the credit even if there is an insufficient amount of taxes to be credited against). The American Rescue Plan increases the amount to $3,000 per child (or $3,600 for a child under the age of six) and makes the credit amount fully refundable. The American Rescue Plan also increases the maximum age of qualifying children to include 17-year old children.

 

The excess of the amount of the credit over the present-law $2,000 amount is phased out by $50 for every $1,000 of modified adjusted gross income in excess of the threshold amount ($150,000 for joint filers, $112,500 for head of household filers, and $75,000 for single filers). Once the excess amount is eliminated, the amount of the credit remains at $2,000 until the present law phaseout thresholds are reached ($400,000 for joint filers, $200,000 for all other filers).

 

The Treasury and IRS were directed by the American Rescue Plan to issue advance payments of half of the credit amount beginning on July 1, 2021. The advance payments are to be issued monthly, if feasible, or as frequently as possible if monthly payments are not feasible. The remaining half of the credit not paid in advance is received when filing 2021 returns, as the full amount is claimed on the return but reduced by the aggregate amount received in advance.

 

In the case of a taxpayer who received advance payments in error (for example, where a 2019 or 2020 return indicated a dependent child who is no longer a dependent in 2021), the American Rescue Plan provides a “hold-harmless” provision, protecting taxpayers from having to pay back overpayments of up to $2,000 per child. The full $2,000 amount is ratably reduced for taxpayers with income above a threshold amount ($40,000 for single filers, $50,000 for head of household filers, and $60,000 for joint filers). The $2,000 is completely eliminated for taxpayers with income double the applicable threshold amounts, and the entirety of the overpayment must be paid back.

 

Congress directed the IRS and Treasury to create a website for taxpayers to opt out of receiving advance payments, or to provide information on status changes that would impact the amount of the tax credit received.

 

If you have any questions on how the changes to the child tax credit under the American Rescue Plan affect your specific tax attributes, please call our office.

Preface: While nursing home costs can be disconcerting to many retirees and caregivers, there are some circumstances where out-of-pocket expenses may be reduced.

Nursing Home Costs and Ways to Pay

The cost of nursing home care in the U.S is prohibitive for many, and it can vary widely between regions and states, from around $5,000 per month up to a surreal $25,000 per month. How much a nursing home charges depends on its geographic location, staffing levels, the complexity of care offered and the facility’s size and quality. Additionally, there may be “à la carte” costs to contend with. For example, a facility that offers social services like financial management aid is likely to charge extra for that feature, among others.

Nursing home prices can make it tempting to look for less costly, less supportive residential care options such as assisted living. However, nursing homes should never be conflated with assisted living facilities. Knowing the difference between the two is an important part of making sure you or someone you are responsible for is getting a sufficient level of aid and supervision…….

……Regardless of how you come up with the cash for your loved one’s nursing home stay, it’s crucial to work with reputable financial institutions and to ensure that you understand all of the terms and fees involved. It’s also important to check with your skilled nursing facility about what types of care and services are included in the fees being charged, and which ones may cost extra.

…….At the other end of the nursing home spectrum is high-level inpatient medical care, referred to as skilled nursing or rehabilitation care. Under certain circumstances….For Medicare to cover this care, it must be provided in the skilled nursing facility wing of a hospital, in a stand-alone skilled nursing or rehabilitation facility, or in the skilled nursing or rehabilitation unit within a “multilevel” facility…….

Read entire article here…..Nursing Home Costs and Ways to Pay

Preface: Great businesses are built one productive person at a time – The ONE Thing

A Book Summary |  The ONE Thing

The ONE Thing — Gary Keller

Book Summary: Samuel Thomas Davies

The Book in Three Sentences

1. 1. 1. 1. The ONE Thing is the best approach to getting what you want.
         2. Success is a result of narrowing your concentration to one thing.
         3. Success is built sequentially, one thing at a time.

To achieve an extraordinary result you must choose what matters most and give it all the time it demands. This requires getting extremely out of balance in relation to all other work issues, with only infrequent counterbalancing to address them.

The Focusing Question collapses all possible questions into one: “What’s the ONE Thing I can do such that by doing it everything else will be easier or unnecessary?”

Anders Ericsson observed that “the single most important difference between {the} amateurs and the three groups of elite performers is that the future elite performers seek out teachers and coaches and engage in supervised training, whereas the amateurs rarely engage in similar types of practice.”

Achieving extraordinary results through time blocking requires three commitments. First, you must adopt the mindset of someone seeking mastery. Second, you must continually seek the very best ways of doing things. And last, you must be willing to be held accountable to doing everything you can to achieve your ONE Thing.

Accountable people achieve results others only dream of.

A Book Summary |  The ONE Thing

“If you can’t feed a hundred people, then feed just one.” — Mother Teresa

How Fiat Money Made Beef More Expensive

In 1909, there were 51.1 pounds of beef, 41.2 pounds of pork, and 10.4 pounds of chicken available per capita, for a total of 102.7 pounds of all meats per capita. In 2019 the figures were, respectively, 55.4, 48.8, and 67.0 per capita, for a total of 171.2 pounds of all meats per capita. While meat consumption had gone up, the composition of the diet had changed drastically. If we add the fact that veal and delicious lamb, minor components in 1909 at 5 and 4.4 pounds per capita, respectively, had virtually disappeared from the diet in 2019, the change becomes even more noticeable……….

………….Since investment has flown into the production of grains, pork, and poultry, productivity in these fields has increased more than in beef production, and the supply of these foodstuffs has risen while their prices have fallen relative to the supply and price of beef.

People’s food budgets are generally pretty fixed, meaning that even though incomes rise the extra income goes to the purchase of other consumer goods, not food, a generalization known as Engel’s law. Beef therefore increasingly becomes a luxury, something only regularly consumed by the well-to-do, which working-class and lower middle-class people only enjoy on special occasions. 

Read entire article here: 

 

“Remember that happiness is a way of travel, not a destination.”

2021 IRS Business Tax Expensing for Auto Mileage

For tax purposes businesses generally can deduct the entire cost of operating a vehicle when following tax rules guidance. Alternatively, they can use the business standard mileage rate, subject to some exceptions in the tax code. The mileage deduction is calculated by multiplying the standard mileage rate by the number of business miles traveled. Self-employed individuals also may use the standard rate, as can employees whose employers do not reimburse, or only partially reimburse, them for business miles driven.

Many taxpayers use the IRS business standard mileage rate to help simplify their recordkeeping. Using the IRS business standard mileage rate takes the place of deducting almost all of the costs of your auto. The IRS business standard mileage rate takes into account auto costs such as maintenance and repairs, gas and oil, depreciation, insurance, and license and registration fees.

Beginning on January 1, 2021, the IRS standard mileage rates for the use of an auto (also vans, pickups or panel trucks) is:

• • • • • 56 cents per mile for business miles driven, down from 57.5 cents for 2020

• • • • • 16 cents per mile driven for medical or moving purposes, down from 17 cents for 2020

• • • • • 14 cents per mile driven in service of charitable organizations, no change from 2020

Mileage related to unreimbursed business expenses and moving expenses are limited to certain taxpayers as a result of the Tax Cuts and Jobs Act for tax years 2018 through 2025:

Business expenses:

• • • • • • • Unreimbursed business expenses subject to a 2% floor as an itemized deduction have been eliminated.

• • • • • • • Eligible taxpayers for business mileage expenses:

• • • • • State and local government officials paid on a fee basis, and certain performing artist

The IRS standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The IRS rate for medical and moving purposes is based on the variable costs from analysis.

Taxpayers may have the option of calculating the IRS actual costs of using their autos rather than using the IRS standard mileage rates. If instead of using the IRS standard mileage rate you use the IRS actual expense method to calculate your vehicle deduction for qualifying business miles driven, you must maintain very careful records of qualifying expenses. When using this IRS method, it is vital to keep track of the IRS actual costs during the year to calculate your deductible vehicle expenses. One of the most important tools is a mileage logbook. Business with auto fleets must apply actual costs for mileage expenses.

If you have additional questions on 2021 IRS business tax expensing for auto mileage, please contact our office.

Preface: Opportunity is missed by most people because it is dressed in overalls and looks like work. — Thomas A. Edison (one of the most influential inventors of all time.)

Employer Tax Credits for Paid Family and Medical Time-Off

Tax legislation with The Consolidated Appropriations Act, 2021 extends the employer credit for paid family and medical time-off through December 31, 2025.

Under unique provisions of the Consolidated Appropriations Act, 2021, the credit for coronavirus related paid sick and family time-off, originally part of the Families First Coronavirus Response Act, was extended through March 31, 2021. The Families First Coronavirus Response Act (Act) provided paid sick leave and expands family and medical time-off for COVID-19 related reasons and creates the refundable paid sick time-off credit and the paid childcare leave credit for eligible employers.

Extended Employer Credit for Paid Family and Medical Leave

Employers who provide paid family and medical time-off to their employees may claim a tax credit which is equal to a percentage of wages they pay to qualifying employees while on family and medical time-off. The credit is effective for wages paid in tax years beginning after December 31, 2017 through December 31, 2025.

With the passage of this legislation employers must have a written policy in place that meets certain requirements, including providing:

• • • • At least two weeks of paid family and medical time-off (annually) to all qualifying employees who work full time (prorated for employees who work part time), and
      • The qualifying paid time-off is not less than 50 percent of the wages normally paid to the employee.

A qualifying employee is any employee under the Fair Labor Standards Act who has been employed by the employer for one year or more and who, for the preceding year, had compensation of not more than a certain amount.

Family and medical time-off for purposes of the employers who want to claim the credit include:

• • • • Birth of an employee’s child and to care for the child.
      • Placement of a child with the employee for adoption or foster care.
      • To care for the employee’s spouse, child, or parent who has a serious health condition.
      • A serious health condition that makes the employee unable to perform the functions of his or her position.
      • Any qualifying exigency due to an employee’s spouse, child, or parent being on covered active duty (or having been notified of an impending call or order to covered active duty) in the Armed Forces.
      • To care for a service member who is the employee’s spouse, child, parent, or next of kin.

The credit is a percentage of the amount of wages paid to a qualifying employee while on family and medical time-off for up to 12 weeks per tax year.  The minimum percentage is 12.5% and is increased by 0.25% for each percentage point by which the amount paid to a qualifying employee exceeds 50% of the employee’s wages, with a maximum of 25%.  In certain cases, an additional limit may apply.

An employer must reduce its deduction for wages or salaries paid or incurred by the amount determined as a credit.  Also, any earned wages taken into account in determining any other general business credit may not be used in determining this credit.

If you have any questions about qualifying for the tax benefits of this credit, please call our office.

Preface: The kiddie tax is a tax imposed on individuals under a certain age (under 19 years old, and full-time students age 19-23 years old), whose investment and unearned income is higher than an annually determined threshold.

Taxpayer Planning for the Kiddie Tax

Taxpayers claiming dependents who have unearned income during the year might want to consider some year-end tax planning strategies to reduce their overall tax burden. In addition, due to recent changes in the tax law, they may also have an opportunity to amend a prior year return.

The Tax Cuts and Jobs Act (TCJA) modified the “kiddie tax” to use the ordinary and capital gains rates applicable to trusts and estates to the net unearned income of a child after 2017.

However, the Further Consolidated Appropriations Act, 2020 enacted in 2019, reverts the kiddie tax to the prior use of the parents’ tax rate for tax years beginning after 2019. Therefore, for tax years beginning in 2020, the kiddie tax is calculated using the pre-TCJA rules where a child’s unearned income is taxed at the parent’s marginal tax rate. The Further Consolidated Appropriations Act also allows a taxpayer to retroactively apply the pre-TCJA rules to 2018, 2019, or both.

In general, a child is subject to the kiddie tax if:

• • • the child is required to file a tax return and he or she does not file a joint return for the year;
    • the child’s unearned or investment income is more than a threshold amount ($2,200 for 2019, 2020 and 2021);
    • either parent of the child is alive at the end of the year; and the child is:
      • • • • under age 18 at the end of the tax year;
            • age 18 at the end of the tax year and does not provide more than one-half of his or her own support with earned income; or
            • at least age 19 and under age 24 at the end of the tax year, a full-time student, and does not provide more than one-half of his or her own support with earned income.

Under the rules prior to TCJA, the child’s tax liability is equal to the greater of:

1. 1. 1. The tax on all of the child’s income without regard to the rules for the kiddie tax; or;
      2. The sum of the tax on the child’s total income reduced by net unearned income, plus the child’s share of the allocable parent tax.

In some cases, a parent may elect to report a child’s income on the parent’s return. If a parent makes this election, the child is not required to file a return. If a parent makes the election to report a child’s unearned income on the parent’s return, that income is treated as the parent’s investment income for purposes of figuring the investment interest expense deduction. However, the parent may not claim an itemized deduction for the child’s investment expenses.

Moreover, there are other tax deductions that the parent may not take that the child could have taken on the child’s return. These include the standard deduction for a disabled child, the deduction for a penalty on early withdrawal of the child’s savings, and the itemized deduction for the child’s charitable contributions.

It is important to review all the facts and circumstances of your situation in order to determine whether you should use the TCJA or the non-TCJA kiddie tax rules to amend your 2018 and 2019 tax returns to secure potential refunds. You might also consider if there is a benefit to reporting your child’s income on your tax return.

Preface: Each payroll provider should be able to articulate how their company has developed a niche in the payroll industry, and this can help you understand how well each company will be able to serve you.

How to Choose the Right Payroll Provider

Credit: Matthew P. Glick

Payroll processing is one of those crucial back-office operations that every business needs, but few people fully understand. HR laws are complex, and are continually evolving. Processing payroll can easily feel like a process that is just beyond your control, where you press buttons, and employees get paid. In this article, we will be breaking down what it is that you should look for in a payroll provider by classifying three phases (Evaluating what you need, Searching the market for available solutions, and RE-searching the list of available solutions by comparing each contender with the competition).

1. Evaluating

In this phase, you will mainly be concerned with evaluating your current needs. A good starting point would be understanding why you are looking into switching providers. By identifying the “pain points” with your current provider, you should be able to more easily identify a solution that will satisfy your needs much better. For instance, if customer service regularly fails to deliver on expectations, consider locating a provider that has a dedicated team or account manager to handle customer service, instead of a call center.

Some other points to consider would be the complexity of your payroll situation. What kind of benefits do you offer employees? Always be sure they are prepared to handle anything unique you bring to the table. The more complex your situation, the less willing you sould be to compromise on having a knowledgeable onboarding team that will be able to configure your solution just the way you need it. Some companies with a higher employee turnover may find it beneficial to invest in an integrated HCM module, which would allow them to process onboarding paperwork online, eliminating the need for paper forms.

Remember to look into what kind of integrations you will need. Making sure that your payroll provider integrates with your accounting software can save valuable time. Another integration that may save time depending on the size of your company would be timesheets automatically importing into your payroll system.

Don’t forget to evaluate you company’s future growth plans as well. Identifying a solution that has room to grow with your company will save you much time and hassle, and will allow you to focus on those growth plans rather than medicating the growing pains in HR.

Note: If your company has relatively few needs with minimal complexity, an option to consider would be Quickbooks Payroll (especially if you already use them for accounting). Their pricing structures are pretty transparent, and their online version even offers an automatic payroll option for salaried employees, or hourly employees who regularly work the same number of hours.

2. Searching

In this phase of the journey to finding the perfect payroll provider you will want to focus on searching the market for what is available. Use the list of needs that you came up with in the previous phase to quickly “weed out” any obvious misfits. Use that list to keep focused as you browse each company’s carefully curated public image. It’s easy to get taken in by all the bells and whistles that a solution offers, but keep in mind that a great solution that may not have all the bells and whistles is far better than one that looks shiny but repeatedly fails to deliver. Staying objective is the key here.

Tip: Avoid filling out forms that ask for contact information at this stage. You’re just trying to get a high-level overview of each company, and once you get on their marketing lists, it can be very difficult to get off. In order to get pricing data, you will most likely need to contact the company, but avoid doing so until you have identified a few clear front-runners.

3. RE-searching

By the time you get to the end of this phase, you should have a clear idea of which direction you are headed. This is the part where you will want to meticulously compare each company with the competition. Remember, this company will be handling sensitive payroll information, and will be the conduit through which your largest expense sources flow. No pressure, but don’t mess this one up!

Develop a list of questions to ask each company. A few examples would be: “What sets your company apart from the competition?” or “How has your company fared during the COVID-19 pandemic?” Each company should be able to articulate how their company has developed a niche in the payroll industry, and this can help you understand how well each company will be able to serve you. As of the date of this publication, the pandemic is nearly two years old, but the second question should serve you well in identifying a company that is able to adapt to change quickly, which is crucial for any payroll company.

You will also want to scour reviews. Websites like G2 and Capterra are great for this. They will even find the most helpful critical reviews for you, so you can get a balanced perspective on the best and worst parts about a company.

In the end, the company that is perfect for you may not be perfect for the next person, which can make this search a little more complex than we would like, but keeping your company’s goals in mind can go a long way in finding the right solution for you.

This article is general in nature, and it does not contain legal advice.  Contact your advisors to discuss your specific situation.