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...

How to Pay Yourself from an S-Corp Having a business allows you to provide a product or service on your terms with unlimited income potential. The benefits don’t stop there.  A business owner has the ability to take advantage of many tax deductions that are simply not available to regular employees. An employee works and receives a paycheck from his or her employer.  The employer deducts, among other things, Social Security and...

In many industries it is not uncommon for employees to have to travel to visit clients or drive miles away from the office in order to be on a job site. The need motivates companies to purchase lease work trucks and allow employees to drive those company vehicles for both business and personal use. Other companies will ask employees to use their own vehicles instead. Business owners and employees should be aware of the effects of personal...

There comes a time in every online business owner’s life when he or she decides that it’s time to take a step back and sell all or part the business. A successful business requires effort and dedication and oftentimes sacrifice. You put so much time into it that a business is sometimes compared to a child. Like a child the business crawls, walks, runs and ultimately leaves the nest. When it’s time for you to sell your online business there are...