Why You Should, and Shouldn’t, Apply for a Tax Extension
Every small business owner knows that the months between January and April are a hectic and stressful time. With so many factors that go into your business taxes, it can be tempting to apply for a tax extension. Before you do, it’s worth your time to look at both the pros and the cons of filing […]
What Is a Flow-Through Entity?
What Is a Flow-Through Entity? A flow-through entity is a legal business where income flows through to owners or investors. By doing so, the income is taxed at the individual tax rate for any ordinary income which owners may receive. Because the income flows to owners or investors, the business is not taxed under […]
How the SECURE Act Impacts Small Business Owners
Employee Retirement Outlook No matter how much they love their job, every working American looks forward to the day that they can retire. Retirement is the reward at the end of the road, the promise of time and freedom to pursue dreams, engage in hobbies, or just find a good spot to relax in. Retiring and […]
What You Need to Know About the QBI Deduction
Tax season is once again upon us. Millions of Americans breathe a sigh of relief every year as they know their refunds will soon hit their bank accounts. However, for business owners, tax season can be stressful. Not only do they have to provide their employees with W-2s and their subcontractors with 1099s by January 31, […]
Do You Need to Send Out 1099s?
As a small business owner, you need to be aware of your financial responsibilities. If you hire independent contractors or vendors to help you in your business, you need to understand the IRS reporting requirements and send out 1099s to avoid tax problems. What Are 1099s? 1099s is an IRS form that records […]
Checklist for Maintaining Your Limited Liability: Avoiding Piercing the Corporate Veil
One of the reasons for incorporating or forming a limited liability company for your small business is to protect yourself and affiliated entities from personal liability. However, the shield of limited liability company (LLC) might not be enough to protect you from personal assets and investments being used to cover the liabilities and debts of […]
Why Small Businesses Need a CPA
Most small businesses don’t need the expense of hiring an in-house accountant. Outsourcing your accounting needs is the smart option for getting expert financial advice and assistance. Indeed, small business owners realize that hiring a full-service accounting firm is a wise decision for achieving financial goals. With access to a CPA, small businesses have the […]
The New Tax Brackets for 2019
April 2020 is right around the corner, and 2019 taxes will be due soon. The most important thing to remember when it comes to taxes (besides paying them) is that U.S. tax rates are marginal. For example, you’re only taxed 10% of the first $9700 you earn per year. Each dollar over that threshold is […]
How Tax Reform Will Affect Your Business Meals and Entertainment
Many business owners understand that a good meal or great entertainment can seal the deal on their professional relationships. At one time, it was easy for businesses to simply write these expenses off on their taxes. However, new tax reform laws have done away with the business meal and entertainment write-off. Learn what the once-in-a-generation […]
What Are Pass-Through Entities and How Are They Taxed?
One of the most prominent business structures in the US is the pass-through entity. In fact, according to research published by the Tax Foundation, in 2011, pass-through businesses employed “more than 50% of the private sector workforce” in the country. These businesses not only file more tax returns but also generate higher incomes that the […]