Consultant’s Corner: Forming a General Partnership

Question: I am ready to start a business with a partner. What steps should I take? You can review information for forming a General Partnership at state and legal websites; however, these are the general steps required for formation of this entity type: Choose a business name File a trade name Draft and sign 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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Consultant’s Corner: Loans from Family Members

Q. What is the lowest annual interest rate allowed by the IRS on a loan from a family member? The tax rules governing below-market and related-party loans are complex, with a number of exceptions. To understand all of the tax implications, you should consult your tax adviser or CPA before you enter into or renegotiate…

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Consultant’s Corner: Surviving an IRS Schedule C Audit

Question: I have just received my first notice from the IRS indicating that there will be a Schedule C Audit. What should I expect? The IRS should have provided you with an Information Document Request that will tell you specifically what they want to review in this first meeting. Review this document request with your…

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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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You Can Get a Tax Credit for Hiring a New Employee!

Did you know that it’s possible to hire a new employee and get a tax credit for it? The Work Opportunity Tax Credit (WOTC) program provides a tax credit for employers who hire workers who are members of specific groups, such as veterans, SNAP recipients, and Vocational Rehabilitation Referrals, among many others. When you participate…

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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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Consultant’s Corner: Do I Need a Separate Business Bank Account?

Question: Medicare and other insurance take direct deposits into my account. Is it better to use a different bank for business and personal so as to limit any errors or confusion? Should I open two accounts: one for direct deposit from the insurance companies and another to pay bills? Regardless of the business structure (sole…

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Consultant’s Corner: Business Entity Selection

Question: “How should I go about choosing a business entity type?” Many small businesses are structured as unincorporated sole proprietorships and General Partnerships due to their formation and maintenance simplicity and costs; however, the primary disadvantage with a sole proprietorship or General Partnership is that it is not a separate legal entity, even when it…

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