If you’re confused by the difference between LLCs and S Corps, this article is for you! Here, we clarify the difference and provide guidance on which option is best for you. Before we get to the best qualification for your small business regarding tax filing, let’s define an LLC and an S Corp so that we know what each designation means. What is an LLC? An LLC is a limited liability company. It is a legal designation. The owner is protected from personal liability regarding business activities … [Read more...] about LLC vs. S Corp: Which is Best for Tax Purposes
tax planning strategies
Take Advantage of 7 Small Business Deductions
Small businesses can take advantage of dozens of tax deductions to reduce what they owe the IRS at tax time. In this article, we share seven top deductions that you may not know about but should. Property rent If you rent a location for conducting business, you can deduct your rent payments as a business expense. Remember, even if you run a business from a home office, that is not an eligible “property rent” expense for your business. Home office deductions should be made under that … [Read more...] about Take Advantage of 7 Small Business Deductions
What Businesses Should Expect From Higher Interest Rates
The historically low interest rates that Americans have enjoyed over the last several years could well become a thing of the past as actions taken by the Federal Reserve to curb inflation make their way through the broader economy. Here's a look at the potential impact on small businesses and some steps they may need to take to ensure their viability. Prepare for a Decline in Sales Paying more interest to lenders can leave customers with less disposable income, forcing them to cut back on … [Read more...] about What Businesses Should Expect From Higher Interest Rates
Hiring An Independent Contractor? Your Tax Obligations
Here’s what you need to know about taxes Two months ago in this column, we explained the differences between employees and independent contractors. The IRS has strict rules that you must follow when you make this distinction because there are very different tax rules for each type of worker. If you’re hiring an independent contractor for the first time, here’s the good news: Your income tax obligations are much simpler than they’d be if you were bringing on a new employee. You are not … [Read more...] about Hiring An Independent Contractor? Your Tax Obligations
Your Map Through the Tax Maze
Getting through the twists and turns of the tax maze can be a challenge. It gets even more complicated when your goal is to minimize the amount you pay. Fortunately, with a little planning, you can bring your bill down, so that you can put more of your money to work building wealth. Certified Tax Coaches (CTC) offers these tips for making tax time less painful. Assemble Your Team No matter how financially-savvy you are, there are significant benefits to building a team of expert guides to help … [Read more...] about Your Map Through the Tax Maze