We mentioned in a previous article about the benefits of having your business taxed as an S-Corporation. If you read that article and want to save on self-employment taxes you first have to have a clear understanding of what the S-corporation is and how to go about forming one for your business. If you are a corporation the IRS will consider you, by default, a C corporation. That is an important factor because a C corporation is a separate...

  What kind of expenses can be deducted for tax purposes is an all too common question for individuals who are self-employed.  Although you might buy many items for your business, not all of these purchases may be deductible on your tax return. The Internal Revenue Service (IRS) and State Departments of Revenue allow taxpayers to deduct expenses that are ordinary and necessary in their business.     Vehicle Expenses If you...

If you’re like most sellers who are busy sourcing, packing and shipping products taxes are the last thing on your mind. However, when you consider the many taxes that we pay: federal income tax, state income tax, payroll tax, use tax, franchise tax, etc. it should come as no surprise that almost 50% of what you make could end up going to the government. With careful planning though you can keep more of your hard-earned money in your pocket. An...

For many Amazon or Ebay store owners the decision of whether to choose a corporation or LLC for their business is sometimes the furthest from their mind. However, the choice is an important one and can affect you in many ways. An LLC, or limited liability company, is an entity formed to protect your personal assets from lawsuits connected with your business. Setting one up will normally require that you submit an Articles of Organization...

As an Amazon seller you spend a lot of time pricing, sourcing or figuring out what to sell. It is easy to overlook sales tax. Many online sellers do not understand when they should collect sales tax and what obligations they have to distribute those funds to the individual states. Here is some basic information to get you started. WHEN SHOULD SALES TAX BE COLLECTED? Sales tax should be collected from a buyer located in a state where you have...

Small business owners are a rare breed. Unlike employees they are willing to take on the risks and responsibilities running their own business to, hopefully, reap great rewards in return. Those who are able to do so will face several challenges along the way. Some of these challenges will determine the very life of your business. Before you embark on your journey you will first need to answer a few questions: IS THERE A MARKET FOR YOUR PRODUCT...