Archive for the ‘small business tax’ Category

Lets chat about business tax preparation…

The key to keeping more money in your pocket is to funnel your funds through a business. The proper business  tax preparation includes tax planning the previous or current year to come up with specific programs that can be used to turn your personal expenses into business tax deductions and to ensure you are able to deduct all of your business expenses.

Business tax preparation can vary depending on what business entity you use. Corporation, LLC, S-corporation, and partnerships all have different rules for writing off your business expenses. This is why tax planning is important..to make sure you have the business entity that works for you.

Once you have a plan in place and follow it, you are able to take maximum advantage of the tax law and your business tax preparation is a breeze!

All the best,

Larisa

It takes money to make money…

What things qualify as small business tax write-offs?

Any money spent to build, promote and operate your business. This would include  advertising, supplies, rent, internet, telephone, transportation, travel, wages, professional services, products, equipment, etc.

All the best,

Larisa

It takes money to make money…

What things qualify as business deductions for taxes?

Any money spent to build, promote and operate your business. This would include  advertising, supplies, rent, internet, telephone, transportation, travel, wages, professional services, products, equipment, etc.

All the best,

Larisa

It takes money to make money…

What things qualify as business write-offs for taxes?

Any money spent to build, promote and operate your business. This would include  advertising, supplies, rent, internet, telephone, transportation, travel, wages, professional services, products, equipment, etc.

All the best,

Larisa

It takes money to make money…

What things qualify as business deductions for taxes?

Any money spent to build, promote and operate your business. This would include  advertising, supplies, rent, internet, telephone, transportation, travel, wages, professional services, products, equipment, etc.

All the best,

Larisa

Here’s the info you’ve been looking for…

A corporation is the oldest type of business structure. The biggest tax advantage is that corporations only pay 15% taxes on the first $50,000 profit. That alone should be reason enough for you to consider forming one.

Corporations are considered separate legal entities–meaning it has rights and priviledges like a person. It can enter into contracts, is liable for it’s own debt and files it’s own taxes.

The owners of a corporation are called the shareholders. They meet at least once a year to elect the board of directors who manage the company’s business. The offiicers of the corporation carry out the board of directors decisions.

Corporations are able able to provide their employees and owners who work in the business with the most tax-free fringe benefits of any of the entities. Since the corporation is a separate taxpaying entity, it is able to deduct the entire cost of the benefits it provides.

A corporation is formed by filing the Articles of Incorporation with the Secretary of State. 

Corporations are required to hold annual board meetings and shareholder meetings, where they make decisions about company policies and issues. These meetings must be documented and kept as part of the corporation’s records. Failure to conduct regular board meetings and shareholder meetings can result in the “piercing of the corporate veil.” This means a judge can disallow all of your corporate deductions and make you pay tax on all the company’s income personally. It’s like they are revoking your corporation status and your ability to take advantage of all the corporate tax breaks.

Cheers!

Larisa

Let’s talk about tax deductions for home business…

A lot of you are constantly asking me what you can write off for home business tax deductions.  Here I’ll tell you the major categories but I encourage you to ask your questions and put your comments below.

Home business tax deductions are the expenses you incur  to operate and maintain your office in your home. If you had rented an office space, you would pay rent, gas, electric, insurance, repairs, etc. Well, it’s the same in your home. Your deduction is based on the percentage of your home that you use as office space. If you use 10% of your home as office space, then you will write off 10% of your mortgage  interest, gas, electric, insurance, sanitation, real estate taxes, etc.You would also get a deduction for 10% of the depreciation of the home.

All the best,

Larisa

It takes money to make money…

What qualifies as a small business tax deduction? 

Any money spent to build, promote and operate your business. This would include  advertising, supplies, rent, internet, telephone, transportation, travel, wages, professional services, products, equipment, etc.

I have an exhaustive list of small business tax deductions, developed over 19 years of tax preparation in chapter 3 of my ebook, “Pay Yourself Instead of Uncle Sam.” 

All the best,

Larisa

What qualifies as a business tax deduction…

The old phrase, “It takes money to make money” applies here. A business tax deduction is money spent to build, promote and operate your business. This would include money spent for advertising, supplies, rent, internet, telephone, transportation, travel, wages, professional services, products, equipment, etc.

All the best,

Larisa

Here’s the definition of an LLC…

A Limited Liability Company, LLC, is a relatively new type of business structure. First introduced in the U.S. in 1990, it is very popular because of the ”limited liability”. If you are sued, you are only liable up to the amount you have invested in the company.

 The LLC was created to include the best aspects of a corporation and a partnership. The basic features are that its owners, called “members”, have limited liability for the entity’s debts and obligations, like shareholders in a corporation, and its income and losses are normally passed through to the members  like a partnership.

 Another reason for the LLCs popularity is it doesn’t require the extensive recordkeeping like a corporation.

An LLC can be created by filing one document, the ”Articles of Organization”, with your Secretary of State.