Business Entity Selection- Audit Risk
Published: 5/29/2015 2:26:33 PM
Sole Proprietorship
Chance of Audit…
| Gross Receipts | Percentage Covered |
| Under $25,000 | 1.2% |
| $25,000 to $100,000 | 2.5% |
| $100,001 to $200,000 | 4.7% |
| $200,001 or more | 3.3% |
Partnerships
Chance of Audit…
There were over 3.4 million partnership returns filed in 2009. Of those 12,406 were audited. Over 40% came back…no change.
C Corporations
Chance of Audit…
| Total Assets | Percent Covered |
| No balance sheet | 0.4% |
| Under $250,000 | 0.8% |
| $250,000 under $1,000,000 | 1.4% |
| $1,000,000 under $5,000,000 | 1.7% |
| $5,000,000 under $10,000,000 | 3.0% |
S Corporations
Chance of Audit…
There were over 4.4 million S Corporation tax returns filed in 2009. Of those 16,327 were audited. Of those 33% of field audits and 50% of correspondence audits came back with "no change".
Now that you know your Audit Risk, do you know the Advantages and Disadvantages of each entity? Contact Us today to learn more about the different types of business entities and we'll help you determine which choice is right for your business!