NOTE: This is for informational purposes only. Tax situations vary. If you need further assistance contact your tax professional or give us a call. We have written several articles on the benefits of an S-corp. Perhaps the most appealing is that an S-corp could potentially save its shareholders thousands of dollars in taxes ever year. An S-corp is not a legal entity. You cannot go to your local town clerk or Secretary of State and set up your...

Not All CPAs Do Taxes This might come as a complete shock to many new business owners but not all CPAs do tax work. Someone can pass the CPA exam and acquire the necessary work experience to be licensed by doing consulting or auditing. Some CPAs have never filed a single tax return. Enrolled Agents on the other hand are accountants who just do tax work and are licensed by the IRS to represent clients on all issues. Therefore, if you hire a tax...

Most people think that doing taxes is just typing in numbers into a computer. I guess that’s like saying practicing law is just talking. Between the public perception of what is involved and the availability of technology it probably shouldn’t come as a surprise that more people are preparing their own tax returns than ever before.  The question of should I file my own taxes or hire someone eventually comes up though. If someone just...

Corporation Advantages and Disadvantages You might want to start a business and are wondering what are the advantages and disadvantages of a corporation. It’s very important to consider if a corporation is the right business structure for you. Questions like what is a corporation, why form a corporation, and do I need a corporation all come to mind and you might just be lost. As a national accounting firm, we’ve helped...

How to Report 1099-K on Income Tax Return It’s not uncommon for online sellers to receive a 1099-K, Payment Card and Third Party Network Transactions, for the prior year. It is one of several information returns that should be obtained before your tax return is prepared. The IRS requires that a marketplace facilitator, such as Amazon, eBay and Walmart send online sellers a 1099-K if they have enough reportable transactions. The current...

An EIN, also known as an employer identification number, is a 9-digit number used to file tax returns. If you incorporate your business, or form a partnership, you must obtain an EIN. In contrast, if you operate as a sole proprietor you can use your social security number (SSN) instead of an EIN. However, even if an EIN is not required applying for an EIN might be a smart idea if you want to prevent your social security number from being shown...