Category: Tax Planning

#7 Hire your children to work in your business Wages paid will be deductible by your company and taxable to the family member. Your child’s earnings will probably fall in a lower tax bracket than yours. Payroll taxes apply to…

#6 Cash Vs Accrual Consider using the cash method of accounting if you meet the qualifications. Under the cash method, you generally report income to the IRS in the year you receive payment from customers. Under the accrual method, your…

#5 Tax and Asset Protection If your business is incorporated, it is often a good idea for you to separate ownership of the business real estate and lease it to your corporation. There are a number of tax and non-tax…

#4 Keep your Corporate Blackbook up to date If you operate a business entity, keep accurate and thorough minutes for the corporation. Minutes should document transfer of funds or assets into or out of the corporation, officers’ salaries, shareholder dividends,…

#3 Incorporate and elect S status If your sole proprietorship or partnership is producing a net profit in excess of a reasonable compensation for your time, you could save money by operation as an S corporation. You are required to…

  #2 Consider “Section 1244 Stock” for a new business If you are starting a business and choose to operate as a corporation, investigate the advantage of “Section 1244 Stock.” There are requirements that must be met, but if your…

#1 Choose your legal structure form of doing business carefully The tax and non-tax consequences of the structure you select are significant. The basic structures of operation from which to choose include: sole proprietorship, partnership, corporation, or limited liability company.…

Not every new company starts off with perfect tax habits, but it is important that you learn from your mistakes and correct them as you go. It is always best to correct any IRS issues voluntarily rather than being forced.…

You May Face Penalties! If you have hired workers as Independent Contractors and they would not be considered as such according to the IRS or your state laws and unemployment regulations, you may face serious consequences. Before you hire an…

The Payroll deadline is fast approaching. Payroll Deadline is October 31st. Are you a business owner or a signer on a the business bank account? BEWARE: If so, did you know that you if you did not pay your Trust…