If you’ve legally established your business as a C Corporation or Limited Liability Company (LLC) that has elected to be viewed as a corporation for tax purposes, you have the option of filing IRS Form 2553 to get S Corporation tax treatment. Why would you want to do so, you ask? Because it could make a big impact on your business’s bottom line. The Potential Advantage for LLCs LLC owners who find themselves with a high self-employment tax burden might benefit from choosing the S Corp election. LLCs are normally taxed like sole proprietorships—with all business profits subject [...]
Every year when tax time rolls around, I field questions from business owners about whether or not they need to send 1099s to their vendors. As common as 1099 forms are, they remain one of the most misunderstood Internal Revenue Service (IRS) requirements. To make sure you understand the circumstances under which the IRS requires issuing 1099-MISC forms to vendors, I’m going to provide some basic “must-know” information here. What Is A Form 1099-MISC? You must issue an IRS Form 1099-MISC to each person you’ve paid $600 or more in services (including parts and materials), prizes and awards, [...]
Both forming an LLC and incorporating your business safeguard you by protecting your personal assets if legal action is taken against your business. They also give your business a boost of credibility by having either “LLC” or “Inc.” behind your company name. But there are differences that could make one or the other the better choice for you. I can’t emphasize enough the importance of knowing the pros and cons of the legal structures available to you before you decide which will serve your business most effectively. The Low-down On LLCs Many owner-managed businesses opt to form as [...]
When starting a business, you need to do quite a bit of heavy lifting. Of course, a big part of this is handling the complexities of the US tax system. In fact, one particular area that often trips up entrepreneurs is something called estimated tax payments. The main reason is that this is quite different from when you have a job. You see, a self-employed person needs to essentially do what an employer does – that is, make ongoing payments to the IRS. This often comes as a complete surprise to first-time entrepreneurs. After all, when April 15th [...]
With school back in session, students of all ages are learning new things—and discovering how much they don’t know in the process. Whether you’re an aspiring entrepreneur or long-time business owner, one thing is certain: like the kids who are back to school, you always have room to learn and grow. As I’ve learned and grown as a business owner, one of my favorite phrases has become, “You don’t know what you don’t know.” How true, right? It’s far too easy to fool ourselves into thinking we really know all there is to know. But the truth is [...]
If you’re like most small business owners, you groan when April rolls around. You know you have a hefty tax bill waiting for you, and it’s one you despise paying. What’s your plan for paying that tax bill? Did you know you had options? Let’s look at three smart ways you can get your taxes paid with minimum stress or fees.
When first-time entrepreneurs begin the process of starting a business, they sometimes throw caution to the wind when it comes to investing in that business, because they assume they can write off all of their business expenses. Those entrepreneurs are in for a serious shakeup, because that’s not explicitly true. There are some rules about what and when you can deduct as it relates to startup costs. Take notes, folks. This is important.
If you’re like a lot of other small business owners, you drag your feet until the last minute to file and pay your taxes. It’s getting down to the wire, folks, so even if you want to wait until April 15 to file your taxes, you still have a lot of work to do to prepare.
When it comes to filing your small business taxes, it can seem overly complex. After all, what qualifies as a deduction? Are you filing as the proper status? Don’t let tax season overwhelm you. Believe it or not, the IRS isn’t out to get you, but they do want you to play by the rules. These tips will help you alleviate the stress you feel this time of year and help you maximize your refund.
As the summer heats up, vacation season kicks into full swing. Employees with office jobs enjoy all those traditional perks like paid vacation days, while time-pressed, cost-conscious startups, small business owners, and contractors are left wondering how to get that much needed time off without jeopardizing their business and clients.
Here's CorpNet's latest press release about the March 15 deadline to elect S Corp status. For a corporation filing taxes, March 15 is a critical tax deadline. But for a small business owner who has incorporated a business as a C Corporation or a Limited Liability Company (LLC), March 15 is also an important deadline, as it’s the last day to elect S Corporation status for the 2013 tax year.
Ask any small business owner or self-employed person to name their least favorite tasks, and bookkeeping, money management, and paying taxes will all make the list. While these chores may not be popular, they’re absolutely critical.
Is forming a corporation right for you? Learn about the advantages it can offer.