How is Beehive Homes taxed for the years 2022, 2023, and 2024?

According to Beehive Homes' 2025 Franchise Disclosure Document, for the years 2022, 2023, and 2024, Beehive Homes has elected to be taxed as an S Corporation. This means that the company's income is not taxed at the corporate level. Instead, the income is passed through to the shareholder, who then reports the income on their individual tax return. Therefore, the income for those years will be taxed to the shareholder as an individual, not to the corporation itself.

Beehive Homes uses accelerated depreciation for income tax reporting, which can create timing differences between the financial statements and the company's tax return. These differences result in a deferred tax liability for the shareholder as an individual, but this liability is not recognized by the company itself. This is a common practice for S Corporations, as the tax liability ultimately falls on the individual shareholder.

For a prospective Beehive Homes franchisee, this information is relevant because it provides insight into how the franchisor, Beehive Homes, manages its own tax obligations. While the franchisee's tax situation will be different, understanding the franchisor's tax structure can offer a glimpse into the overall financial management of the company. It's important for potential franchisees to consult with their own tax advisor to understand the tax implications of owning and operating a Beehive Homes franchise.