Single Member LLC and Profit Distribution – Foster Financial
Have you ever thought of how you can take distributions out of a Limited Liability Company? Well, it’s not as difficult as it may sound. The tax election that the company makes with the Internal Revenue Service (IRS) defines how you take profits out of an LLC. The benefits distributed are not salaries. Instead, the salary […]
The Best Ways to Get Money out of an S-Corp – Foster Financial
S-Corporations are the most common forms of small businesses organization today. This is because they can avoid double taxation of standard corporations. Indeed, there are many ways in which S-Corp holders can use to reduce the taxable amount from their earnings. However, this does not apply to everyone. Keep reading for the best ways to […]
Could a Small Business Line of Credit Help You? – Foster Financial
As a small business owner, especially in certain industries like construction or real estate, you know unexpected financial setbacks can happen at any time. Even the most shrewd business owner has encountered a time when they weren’t sure how to make things work. Having a safety net for these times can give you peace of […]
Tips to Avoid Estimated Tax Penalties – Foster Financial
Being in business can be challenging, especially when it comes to filing taxes properly. If your business is an LLC or S corporation, ask your tax professional if the QBI deduction introduced by the 2017 Tax Cuts and Jobs Act applies to you. This allows a 20% deduction of income through two avenues: 1) Qualified Business Income, […]
The Importance of a Balance Sheet in Your Business – Foster Financial
The main goal of any business is to make profits; therefore, it is not uncommon for most business owners to pay more attention to the income statement and forget about the balance sheet. These business owners prefer the income statement because it shows them the earnings after tax. Interestingly, despite making profits, some business owners […]
Income and Balance Sheets: Understanding Your Business’s Financial Statements – Foster Financial
Every month you receive a financial statement in the mail from your accountant. As a small business owner, you may not be excited about crunching the numbers. You’re excited about your business and want it to succeed. The numbers on your monthly financial statement are trying to tell you about the health of your business. […]
Planning For Your Retirement as a Small Business Owner – Foster Financial
As a small business owner, you are the only person who is going to make sure that you are prepared for your retirement. If you want to retire eventually, you need to start planning today. In fact, the sooner that you start, the better off you will be when you decide to sell your business […]
What You Need to Know About Tax Extension – Foster Financial
A tax extension is what you apply for when you need more time to file your tax returns. You can do so by filling out the IRS Form 4868. If the IRS approves your request, it gives you six more months to sort out any complications. This is great for business owners, whose lives are anything […]
C Corporations Versus Pass-Through Entities – Foster Financial
When growing your business it is important to have a financial focus. Starting a business venture is in most cases a financial risk with unverified returns. Taking your idea and turning it into a profitable business is no easy task. Many different areas of expertise must successfully combine to make your business profitable. Financial literacy […]
Why Your Business Should Have a Bookkeeper – Foster Financial
If you’re not well educated in finances, this is one of the top reasons why your business should consider a bookkeeper. Why try to grasp the complexity of your company finances when you can hire a professional? Top 3 Reasons Why You Need a Bookkeeper 1. Address The IRS The Internal Revenue Service (IRS) requires […]