#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 take a reasonable salary for the work you do but no more than that. With…
#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 stock qualities and your business later fails, you can deduct up to $50,000 of the…
#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. Seek professional assistance before deciding, and review your chosen business from time to time to…
“Sin tax” is a higher tax rate for products that typically have bad effects on the human body. Products that fall under Sin Tax include: GMO food, junk food, snacks, marijuana, vending machines food and soda drinks. The concept of the ‘Sin Tax’ is to make unhealthy food and drinks more expensive so people would…
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. A company that does not comply with the IRS rules and regulation may be subjected…
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 independent contractor you should know the difference between and independent contractor and an employee. If…
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 Fund Liability portion of the federal payroll tax (Medicare and Social Security Taxes), it can…
Tax-Exempt Investments Did you know there is a reason the “rich get richer”? Successful entrepreneurs make financial plans and learn to invest wisely. By mastering the skill of investing these entrepreneurs get the most gain between returns and tax savings, which can then be reinvested for exponential returns. Believe it or not, every successful business…
If you are like most people today, you dream of a secure financial future. Although it is a common dream, not everyone knows how to achieve this. At Rosillo & Associates, we understand how difficult it can be to take this first step. We understand that most people do not know where to begin. That…
Successful entrepreneurs understand the importance of financial planning and financial advisory. Electing an experienced financial planner is key to creating a successful and attainable financial plan. When creating a financial plan, it is important to set realistic goals and the proper actions to achieve those goals. In America, poor financial planning is one of the…
