How New Tax Cuts Impact an LLC

Q: How do the new federal tax rules impact the taxation of my LLC business? The recently enacted Tax Cuts and Jobs Act of 2017 (TCJA) took effect January 1st, 2018 and will have a significant impact on the federal income tax treatment of business pass-through entities, which for the TCJA are defined as sole […]

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What is This Financial Statement?!

You probably started your business because you love what you do. But you’re probably a lot less passionate about the various and sundry financial statements that necessarily require so much of your time. The ADP blog team takes a look at many of the business financial statements you are responsible for completing, including the balance […]

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Consultant’s Corner: Income Tax by Entity Type

Q: What are the income tax considerations for different business entity types? To develop a better understanding of the differences in tax treatment and owner distributions/compensation for sole proprietorships, partnerships, C corps, S corps and similarly taxed LLCs, you can review the following basic guidelines: Sole proprietorship and LLC taxed as a sole proprietorship. A […]

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What to Do When You Fall Behind on Tax Payments

Keeping up with your required tax payments is a major obligations—and challenge—as a business owner. But sometimes a business owner falls behind. If that’s you, know that you’re not the only one. That’s when it’s time to find a tax problem resolution to solve your problem. The ADP blog team has broken down some of […]

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Consultant’s Corner: Tax Treatment of Tipped Employees

Question: Are tips received and reported by a waitress taxable for unemployment calculations? Tips reported by a restaurant waitress to an employer are taxable for unemployment tax calculation purposes, subject to certain thresholds and guidelines. Also, there are additional tax treatment considerations for different types of food service businesses and tip and gratuity procedures that […]

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Consultant’s Corner: Hiring Your First Employee

Question: I’m growing and am thinking about hiring my first employee. What should I do? When growing a business, entrepreneurs typically reach a point in the process where they must consider the prospect of adding staff. There are several important things to consider when hiring employees, which include: labor laws, compensation structure, fringe benefit programs, […]

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Don’t Make These Common Tax Mistakes!

Taxes are one of the most complicated tasks for small business owners, and it isn’t hard to make mistakes—even big ones. Small business tax specialist Gail Rosen shares some of the most common mistakes small business owners make with their taxes, and how to avoid them, including correctly classifying employees and contractors, deducting startup costs, […]

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