How Often Should a Budget Be Updated?
How often should a budget be updated? It depends.
Choosing a Business Entity: LLC
An LLC is a “limited liability company.” Note the “C” stands for “company” and not “corporation.” LLCs are legal entities formed under state law.
Choosing a Business Entity: Determining S-corporation Reasonable Salary
What is a reasonable salary for a corporate owner? This is hard to answer because tax law and the IRS provide no formal definition of the term “reasonable.”
Choosing a Business Entity: S-Corporation
S-corporations share many of the same characteristics of partnerships. The biggest difference is, owners who work in the business day-to-day are paid a salary.
Choosing a Business Entity: C-Corporation
This is an excerpt from a presentation I give to college students and to prospective entrepreneurs about types of business entities. A college professor (who’s also an attorney) told me that my presentation on this subject is the best, clearest and most-concise overview of the topic that she’s ever seen. I’m flattered by the compliment, […]
Glossary: Gross Income/Gross Profit
Gross income is all money coming in the door, before any expenses. Gross profit is what’s left after cost of goods sold are subtracted.
Corporate Tax Status Determined By Federal Law, Not State Law
If a corporation has its corporate status terminated by a state, does that terminate its corporate status for federal taxes? The IRS says the answer is no, though it depends on the facts and circumstances.
Why Make Estimated Tax Payments?
Why make estimated tax payments? Because it helps the self-employed person avoid falling hopelessly behind on their tax liabilities.
Glossary: Amortization
What does amortization mean?
Choosing a Business Entity: S-Corporation vs. C-Corporation
For people unfamiliar with tax law the terms S-corporation and C-corporation can be confusing. Here’s the best way to look at what these terms mean.