Many budding entrepreneurs structure their businesses as sole proprietorships. This is the simplest way to get started, but the potential for liability problems creates a serious drawback. If you’re a sole proprietorship, then legally you are the business. If a client sues you for some reason, they’re suing you — not your business. This makes … Read more
You’ve likely often heard it said that you have to spend money to make money, and there is truth in these words. Even if you watch your pennies closely and try to shell out as little as possible, there are certain unavoidable expenses you will incur when starting a new business. Fortunately, the IRS allows … Read more
If you’re thinking about embracing entrepreneurship and striking out on your own, don’t let the prospect of business taxes make you reconsider. So long as you structure your business as a sole proprietorship or single-member LLC, dealing with the tax consequences is actually quite easy. The hardest part is keeping detailed records of your business … Read more
Whether your business itself is new or you’re taking a stab at doing your own business taxes for the first time, you’ve likely already encountered a form that asks for your principal business activity code (PBC) or North American Industry Classification System code (NAICS). Fortunately, once you know what you’re looking for, these codes are … Read more
Salary matters, as do employee benefits. A popular trend in current business magazines is to claim that when treated well, employees don’t worry as much about their wages. There is some truth to this claim, but tread carefully. Employees work so they can pay their bills and feed their families. As nice as an atta … Read more
You became a doctor so you could help people but, honestly, the money doesn’t hurt either — until tax time. As someone who makes a good living, you’re also someone who can acquire a hefty amount of tax liability throughout the year. Fortunately, there are many things you can do to reduce that liability, giving … Read more
As a small business owner, you probably won’t manage to reduce your tax liability as low as some of the infamously rich, but that doesn’t mean you shouldn’t try. There are several self-employed tax write offs you can use to save on your tax bill. The trick is to find them and then use them … Read more
If you’re self-employed, there can be a lot confusion around the optimal way to pay yourself from your business entity. If you pay yourself, some natural questions arise. Are you still considered to be an employee? Should you take a salary or is there a better way to pay yourself? How is all this money … Read more
People who own small businesses often juggle many different jobs, but the role of accountant is rarely a favorite. We won’t lie: business taxes can be daunting and get a bit complicated. Things do get a lot easier, however, once you understand a few basics. Here’s a plain English breakdown of the business tax basics … Read more
If you run a small business, you may work with a number of contractors, freelancers and vendors throughout the year. If you pay a particular contractor $600 for more for their services during any given year, you must complete an IRS Form 1099-MISC. In general, taxes are not taken out at the time that payment … Read more
