Especially following the work-from-home days of the pandemic, many workers are seeing perks of being self-employed. Owning your own business means making your own hours, setting your own standards and expectations, being your own boss, and having a limitless income. …
As the year comes to a close, it is time to start thinking about 2021 taxes. Every year, individuals as well as small businesses neglect to take full advantage of deductions and ways to save on taxes. However, following these…
Throughout your career, you’ve likely dreamed of what your retirement might look like. You imagine the vacations you will take, the place you will live, and the people you will spend your time with. Making that dream a reality, however,…
When running a small business, every dollar counts. Because of that, many small business owners simply use an accountant or try to navigate as much as possible out on their own. The problem with that idea? It often ends up…
If your business includes a retirement plan with 100 or more participants, you can expect to work with a CPA (certified public accountant) who will perform an audit. Essentially, the government wants to be sure the retirement plans provided are…
When the CARES Act became law in March of 2020, one of the most in demand offerings was the Paycheck Protection Program (PPP), which offered loans to businesses facing hardship as a result of the pandemic, and offered a path…
Last March, as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), employers were presented with the Paycheck Protection Program (PPP) Loan and the Employee Retention Credit (ERC) as relief options to help their businesses in unprecedented…
In the past, the child tax credit has been intended to provide support for each child of American taxpayers. Following the past year, however, one in which many families have faced financial struggle, the American Rescue Plan has expanded that child tax credit in an unprecedented way.
Back when you started your own small business,you most likely started out by hiring a few independent contractors. You were hesitant to hire anyone outright, and simply needed a little help along the way. However, suddenly you became large enough…
Small and mid-sized business tax preparation can be complicated, especially for those who have opted to run their business as an S Corp. Though converting to an S Corpenables businesses to save more money through taxation than a sole proprietorship, the IRS regulations around it are what makes it complex to navigate.
A benefit of an S Corp is the distributions you receive as an owner do not have payroll taxes withheld. However, the IRS requires the owner to become an employee for tax purposes, and, on top of that, take a “reasonable salary”. Over or underpaying yourself, or misrepresenting a salary as distributions, could result in costly penalties.