Category Archives: Business Taxation

The New 1099 Reporting Law Is Bad for Your Business Start-up

The Federal Government wants your business start-up to thrive. The United States SBA has put in place a variety of stimulus-type initiative to help you with that but in other ways, they aren’t making it easy for small business owners like you to thrive. One of those ways is the new 1099 reporting requirement that [...]

How Incorporating a Business Saves Taxes

Tax is assessed on the profit of a corporation differently than the business profit of an independent contractor. Self-employed individuals receive a Form 1099 reporting their income as independent contractors. At high income levels, the tax rate for corporate profits is less than the personal rate. A tax savings is even realized when all the [...]

Tax Planning Benefits from Incorporating

A corporation is a distinct legal entity that pays workers for their services. Corporate shareholders who operate the business are compensated just like any employees. This permits the corporation to provide employee benefit plans to the owner. An independent contractor taxed on income reported by Form 1099 is not entitled to establish employee benefit plans [...]

Saving Taxes by Incorporating

If your New Year’s resolution is minimizing business expenses, look no further than the cost of taxes. Visualizing the tax savings available for an incorporated business begins with an examination of the tax costs from not incorporating. In fact, the tax burden on an unincorporated independent contractor is significant.

Small Business Tax Return Errors- What to do!

If you haven’t done it yet, you will someday. Your small business is up and running and now it’s time to do your taxes. Small business tax returns aren’t as difficult as you might think but just like IRS paperwork for your personal income, it’s easy to make mistakes so what do you do if [...]

Learn About the Rules for Corporate Reimbursement Plans

By following specific rules of the Internal Revenue Service, corporations may provide tax-free reimbursements to employees—including officer shareholders. The reimbursements must cover actual expenses incurred by an employee while conducting business services for the employer.

LLC Tax Status Choices

When an LLC is created in any state, a selection is permitted for how the business is taxed by the federal government. This choice affects the accounting records and type of tax return required for the LLC.

What Happens to Your Home Office Tax Deduction After Incorporating?

When you create a corporation as the successor to your proprietorship business, there are many steps in the transition. One of the important changes is that you become an employee of the corporation. You’re responsible for managing the business as a separate entity.

What You Need to Know About Retirement Programs for Your Corporation

A variety of basic retirement plans are available to corporations. These plans create tax advantages as well as attract and reward valuable employees. A corporation receives a tax deduction for contributions to employee retirement accounts.

How Employee Stock Ownership Plans Work?

Having a corporation as your business structure provides some beneficial options for tax planning as well as having a successor after you retire. One method that addresses both circumstances is forming an Employee Stock Ownership Plan (ESOP).