In Part 1 of this two-part series, we discussed the pros and cons of forming a sole proprietorship and a single-member LLC (taxed as a proprietorship). In Part 2, we discuss what the three possible corporate forms of business have to offer. You’ll get the whole story (the good, the bad, and the ugly) when you read my new article titled Tax Tips: Choosing the Right Entity … [Read more...]
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3 strategies for avoiding 1099 headaches
Do you use the services of independent contractors? If the answer is “yes,” there are changes in the tax law you need to know about. Now. You see, the IRS has moved up the deadlines for filing W-2s and certain 1099s. And compliance with other new tax rules is more difficult than ever. But don’t worry. We can help by providing you with three winning strategies that can … [Read more...]
How your start-up can save big money
Lawmakers finally got it! They realized that it takes time to grow a new business and that it may not generate tax revenue for a while. So they put some extremely helpful rules into the Protecting Americans from Tax Hikes (PATH) Act of 2015. If you are thinking about starting a new small business, you may be able to save a lot of money. But you have to know how to play … [Read more...]
Selling your business? Prepare for “due diligence”
If you’re going to sell your business, your prospective buyer will want to check things out carefully before they sign on the dotted line. This investigative process is called “due diligence” and you can’t blame the buyer for wanting to examine the merchandise carefully. The last thing they want is exposure to your business’s liabilities (known or unknown). Want to know … [Read more...]
Tax Court Puts Personal Service Corporations on Notice for Bonuses
If you’re running a personal service corporation, be aware that a recent tax court ruling can mean bad news for you. You see, the IRS knows that if you’re operating a personal service corporation, you’re probably trying to increase your W-2 income in order to zero out corporate income — income that’s subject to the flat 35% tax rate. That’s why the tax court recently ruled … [Read more...]