Why do so many businesses choose a Limited Liability Corporation (LLC) as their entity structure? An LLC can provide the advantages of a corporation while being taxed as a flow through entity, all while providing personal liability protection for its…
Are you thinking about setting up a retirement plan for yourself and your employees, but you’re worried about the financial commitment and administrative burdens involved in providing a traditional pension plan? Two options to consider are a “simplified employee pension”…
Even though pretty much every business has a website, the costs of developing and managing a website aren’t specifically addressed in the tax code. But since those costs are business expenses, we can use those rules to determine what’s deductible.…
Have you thought about claiming the research tax credit for your small business? If you earn any research tax credits during the year, you can elect to apply them against your payroll taxes rather than your income tax. This tax…
It’s hard to keep track of all the 1099 series of forms. From 1099-MISC, which reports “miscellaneous” payments (as you might guess from the name); to 1099-NEC, which reports non-employee compensation (again, the name gives a hint!); now to 1099-K,…
The next quarterly estimated tax payment deadline is June 15 for individuals and businesses so it’s a good time to review the rules for computing corporate federal estimated payments. You want your business to pay the minimum amount of estimated taxes…
The IRS has released contribution amounts for Health Savings Accounts (HSAs) for the 2023 calendar year. Based on the current rate of inflation, it’s not surprising that these went up substantially. Here’s a comparison to current 2022 contribution levels: 2023…
Anytime you dispose of business property, there’s a tax consequence based on the gain or loss from the transaction. The first step is to calculate the adjusted basis of the property to establish its value. Sometimes basis is equal to…
If your partnership is planning to admit a new partner, there are several financial and legal implications. Here are two issues to consider: If the current partners have an interest in unrealized receivables and substantially appreciated inventory, the allocation of…
Your small business may be considering a conversion from its C Corporation entity structure to become an S Corporation. There are many tax benefits to making an S Corp election, but there are also some tax pitfalls to be aware…