Good Income vs. Bad Income
Business owners may be surprised to learn that there is such a thing as “bad income.” There is also such a thing as good expenses.
When and How to Fill Out a Form W-9
Today I want to write about Form W-9 and when it’s used. My discussion will focus on the most-common usage of Form W-9, which is to collect information from contractors so a Form 1099 can be prepared. I will not be getting into other uses of the W-9. Who Should Fill Out a W-9 I […]
Three Ways A Small Business Can (Legitimately) Avoid Regulations
A common question from business owners is, how can a small business avoid the crush of taxes and regulations while still staying within the confines of the law?
What is the Income Threshold for Going from Sole Proprietor to S-Corp?
I say it depends on your cash flow and whether or not you can afford to pay yourself a reasonable salary for the work you’re doing.
The 4 Choices a Small Business Owner Has When Their Business is No Longer a Side Business
Many of the business clients I work with are either side businesses, or side businesses that are turning into “real” businesses. I’ve written before about the struggle of taking a side business and turning it into something more. Today, I’m going to write about the choices a business owner has with their side business when […]
Can an Accountant “Save” a Struggling Business?
Rarely do the “experts” define what “proactive” means, but one of the vibes I get is that our clients are these damsels in distress, wandering in the wilderness.
When Are Purchases Made With a Credit Card Deductible?
If a cash-basis business uses a credit card for business expenses, are those purchases deductible right away, or later on when the credit card debt is paid?
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.
Self-Employment Tax Calculation: The Basics
Here’s a basic overview of the self-employment tax calculation for self-employed people. These are the steps for the calculation: Determine your net self-employment income. For most self-employed people, this will be the net profit from their Schedule C. Multiply by 92.35% (.9235). Multiply that result by 15.3%. This gives you the amount of self-employment tax […]