An audit is an examination of the financial information reported on a tax return to determine whether that information is correct according to current tax law. You have the burden of proof to substantiate the deductions claimed on their tax return. A tax audit is usually initiated with a letter. You then have a specified number of days to provide the appropriate documentation and/or appeal. You can expect the audit to be conducted by mail or in...

If you’re thinking about starting your own law firm…congratulations! Hanging your own shingle is pretty exciting.  A well-known Chinese proverb revealed that a journey of a thousand miles begins with a single step. Starting your own law firm is no different. You have to start somewhere but you have to start out on the right foot if you want to be successful. A recent Bloomberg survey showed that 3 out of 4 attorneys are dissatisfied with...

When starting a business the entity structure can be a source of confusion. However it’s not a decision to take lightly because the business structure can have an impact on not only your liability risk but also your taxes. If you have more than one owner you have choices. What is a Partnership? On a basic level a partnership is a business with at least two owners. A partnership is a pass-through entity which simply means that the profits and...

There are many advantages to being the owner of a small or solo law firm. In fact, for most, the advantages far outweigh the disadvantages. However, if you asked someone who is a solo what’s one thing they don’t like about calling the shots is that income is unpredictable. Unlike an employee at a law firm where a check is waiting for you every couple of weeks when you’re self employed it’s usually the exact opposite. You could be feasting one...

The S-Corp has been a popular entity choice for small business owners. However, there are instances where S-Corp shareholders may want to end their tax status. The S-Corp structure has several benefits including potential tax savings. It also comes with several rules which, if not followed, could lead to penalties, automatic revocation of the S-Corp status or both.  S-Corp Requirements Must be a U.S. corporation Must have no more than 100...