Tax/Accounting
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 Business Records Should You Keep?
Knowing what business records to keep is critically important to a small business entrepreneur. These records serve many functions. They help you quantify and monitor the progress of your business, and make decisions accordingly. They give you the information you need to prepare a financial statement. They allow you to identify your various receipts and…
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What Business Records Should You Keep?
Knowing what business records to keep is critically important to a small business entrepreneur. These records serve many functions. They help you quantify and monitor the progress of your business, and make decisions accordingly. They give you the information you need to prepare a financial statement. They allow you to identify your various receipts and…
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How To Form a Non-Profit Business
If you’re looking to form a non-profit corporation, there are several important steps for you to follow. Incorporating a non-profit corporation is often similar to a for-profit corporation, but there are some differences to be aware of. Here are some general guidelines for incorporating a non-profit. Pre-Incorporation Matters Prior to incorporation, you should have a…
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The Independent Contractor Checklist
Whether a worker is an Independent Contractor or must be put on payroll as an employee is a question of facts and circumstances. The primary issue is whether the employer has the right to “direct and control the exact duties and manner in which a worker carries out those duties.” There is no specific law…
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Is This Really a Business?
Small home-based businesses have been touted as the last great opportunity for tax shelter. Maybe they are, but there are rules requiring that your business actually be a business and not merely a hobby for which you bring in a little cash to help cover costs. Hobby Loss Rules A Hobby Loss is a loss…
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Understanding a Financial Statement: 3 Key Metrics
Your accounting will ultimately produce financial statements for your business. They are there to help you run the business, and effectively represent each decision you’ve made in the past to help you make decisions for the future. The financial statements accomplish this by translating everything into dollars and cents. But there are other benefits to…
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Unclaimed R&D Tax Credits
Could your business be eligible for a Research & Development tax credit, even a retroactive credit? As businesses look for ways to maximize every dollar in our current crisis, some companies have found that business activities qualified as research and development, potentially yielding substantial savings. Read our full article at https://bit.ly/2P4CUbG to learn more about…
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How do I Get a Federal Tax ID for my Business?
Generally, businesses need a Federal Tax ID number or an Employer Identification Number (EIN) to legally conduct business. Whether a sole proprietor or a corporation, an EIN is necessary. This number is used to identify a business entity for tax purposes and is fairly simple to obtain. The IRS supplies multiple ways to apply for…
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Consultant’s Corner: Tax Reporting Changes for Employers Engaging Independent Contractors
Q: Is it true that tax reporting is going to change for businesses that engage independent contractors? Under current tax law, businesses report cash and check payments for services rendered by non-corporate vendors, such as qualified independent contractors, on Form 1099-MISC, which is filed annually and, in the case of services, only when payments total…
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