Tax/Accounting

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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Schedule_C_Audit

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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What_is_Involved_in_Forming_a_Non_Profit

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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Hiring_Your_First_Employee

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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Do_I_Need_A_Separate_Business_Bank_Account

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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Business_Entity_Selection

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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The_Independent_Contractor_Checklist

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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How_do_I_Get_a_Federal_Tax_ID_for_my_Business

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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