Pros and Cons of Limited Liability Company (LLC) Partnership

Posted by on Nov 18, 2021 in Small Business Tax |

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...

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How Your Solo Law Firm Can Survive When Business is Unpredictable

Posted by on Oct 20, 2021 in Small Business Tax |

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...

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How to Revoke or Shut Down an S-Corp

Posted by on Oct 16, 2021 in S-Corp, Small Business Tax |

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...

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How To Deduct Shareholder Health Insurance for an S-Corp

Posted by on Oct 11, 2021 in S-Corp, Small Business Tax |

Your health is your wealth so it’s no is surprise that most employers want to offer health insurance to their employees. However, for many S-Corp business owners the cost of insurance is too expensive to offer such a benefit. Health Insurance Important to Employees For some workers health insurance is nice to have but for others, particularly those who have to deal with chronic medical conditions, it’s literally a matter of life or death. A...

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How Can I Get a Copy of My EIN Verification Letter

Posted by on Oct 9, 2021 in Small Business Tax |

An employer identification number (EIN) is important to a business and is required if the business wants to pay employees, open a business bank account or provide proof of their EIN to a vendor. While there is no cost to obtain an EIN it’s still important to have.  To obtain an EIN you must first complete Form SS-4. This form is available online. Once that form is filed the IRS will send a letter confirming the EIN also known as Form...

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Self Employment Taxes Simplified and Explained

Posted by on Oct 7, 2021 in Small Business Tax |

Taxes as an employee is pretty straight forward. You get taxes withheld from your paycheck and at the end of the year your employer provides you with a W-2. Things are a little different when you’re self employed. We’ll simplify and explain the differences so if, or when, you become self-employed you will know what to expect. You are self employed person if you do business as an independent contractor or sole proprietor or are a partner in a...

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