For nearly 4 months I’ve been posting excerpts from a presentation I give to entrepreneurs trying to get businesses off the ground. Because the posts are scattered across many weeks, this post serves as a reference point to pull them all together. Part 1: Proper Recordkeeping Part 2: Scanned Copies of Receipts Part 3: Bookkeeping […]
Why make estimated tax payments?
LLC stands for Limited Liability Company. The tax treatment of LLC varies.
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 […]
Basic terms to be familiar with when choosing a business entity.
When examining whether an HRA is appropriate for a sole proprietor, it’s important to look at cash flow, not just the pure tax savings.
Some examples of how breakeven analysis works for service providers and not-for-profits.
Are HRAs always appropriate for sole proprietors? An HRA will almost always save on taxes, but maybe not as much as advertised.
This is part 2 of an explanation of estimated tax payments. In Part 1, I detailed the math behind the tax formula. In Part 2, I’ll explain why a taxpayer might want to make estimated tax payments. Here’s the reason: if you’re fully self-employed, you don’t draw a paycheck in the traditional sense. Since you […]
This blog post addresses the basics of doing business in other states, from a tax perspective.