This quiz was designed to test your knowledge of basic tax forms every small business owner should know. Are you ready to put your knowledge to the test?
Tax Form Challenge: How Well Do You Know Your Basic Small Business Tax Forms? Read More »
The Taxes That You Have to Pay Is Related to Your Entity Choice. Learn How Entities Are Taxed and How to Pitch Investing to Investors.
Video: How Your Entity Choice Affects Your Taxes Read More »
Draws and distributions are simply a mechanism that allows owners to take out excess cash from the business. In pass-through entities, there are no tax consequences for doing either an owner draw, distribution, or a cash infusion in the normal course of business. This concept often creates a level of confusion for founders not versed in a few basic principles of accounting.
The Truth About Why Draws and Distributions Are Non-Taxable Read More »
Paying Taxes at The Corporate Level Is Undesirable for Most Small Businesses, So the LLC Was Born. To Avoid Being Considered A Corporation by The IRS, You Can’t Look Like One. There Are Four Selectable Characteristics that Are Common to Corporations. As an LLC, You Can Only Pick Two Of The Four.
How to Know If Your LLC Is Compliant with IRS Rules? Read More »
Why politics and calls for more taxes paid by the rich will hollow out the small business community that creates 1.5 million jobs annually and account for 64% of new jobs created in the United States
Taxes – How New “Tax The Rich” Policies Will Destroy Small Business Read More »
Federal Income Taxes Are Daunting for Small Businesses. To Provide A Reference for The Small Business Owner I Have Listed the Most Common Tax Forms and Schedules That You Are Likely to Encounter as A Small Business Owner and What They Are Used for.
You Need to Know Your Small Business Tax Forms Read More »
The changing landscape of the US tax code continues to create tailwinds for the business owner. Today, when it comes to earned income, the amount you make may matter less as compared to how you make it giving rise to more small businesses. With the massive surge toward small business ownership will be an increased need for qualified small business knowledge.
Epic Tax Code Changes to Increase Interest in Entrepreneurship Read More »
How you pay yourself as an owner depends on the type of entity you are and how many owners there are. This post lays the groundwork and defines a few terms that should help demystify how entities pay the owners of the business.
How to Get Paid as an Owner of a Pass-Through Entity Read More »
While crowdfunding is becoming more and more common, tax support and guidance for the campaign creators continue to remain unclear on many points. At a minimum, the tax treatment of funds generated through crowdfunding depends on whether the campaign is reward-based, donation-based, or equity-based. Moreover, if it is reward-based, the value of any reward offered
Taxes and Crowdfunding Read More »
The Federal Debt as of Jan 2021 is nearing $28 trillion with another $1,9 trillion stimulus bill being considered. When I wrote this post initially in 2015 the federal debt was about to cross $18 trillion. What does a nearly $30 trillion debt have to do with me? It is not my debt. Someone else
A Strategy to Lower Income Taxes Read More »
Retirement accounts qualify for special tax treatment by the IRS. A common retirement account is a 401k, where pretax dollars from you, which are often matched by your employer, are deposited into an account and allowed to grow tax-deferred. These funds are designed to create income during retirement and are subject to premature distribution penalties
Using a 401k Loan to Fund Your Business Read More »
By transferring a traditional IRA into a self-directed IRA, the IRA owner can invest in private businesses and in real estate as well as traditional sources
Using a Self-Directed IRA to Fund Your Business Read More »
Many would-be entrepreneurs have money tied up in retirement plans like IRAs or 401ks that could be used to fund their businesses. Many simply believe they can’t access these funds until they reach the age of 59.5 without being subject to a premature distribution penalty. That being said, there are a few ways that you
Retirement Account Funds New Business Read More »
Wealth can be defined as a measure of one’s assets in the form of cash and equivalents as well as the market value of ones physical and intangible assets. These assets are accumulated during one’s lifetime with after-tax income. Therefore, the current use of graduated income tax rates, which applies to ones earned income, interest
Graduated Income Tax Accelerates Wealth Divide Read More »
Income tax is paid on a company’s Net Profit which is the amount that is left over after you subtract your COGS, business operating expenses and allocations.
Business Income Tax – What You Need To Know Read More »
Taxing the rich reduces the relative incentives and encourages more coasters. In school, smarter people should not get a harder test simply by the virtue that they work harder than the slackers that do not study. We should reward people for risking their personal capital to start a business that creates employment. Rewarding lucky risk
Is Taxing The Rich Sound Economic Policy? Read More »
With the federal deficit out of control, at some point, the government will need to raise tax revenues through tax increases or tariffs if for no other purpose but to pay off the interest of the debt. Levying more taxes on individuals, or more accurately voters directly is political suicide. Perhaps politicians will get more
Get Ahead of Tax Legislation Read More »
When Robert Kiyosaki of “Rich Dad Poor Dad” fame said, “It is not how much money you make but how much you get to keep,” he was talking about TAXES. As a business owner, you get to claim business expenses that employees do not. For example, if you use a cell phone to make yourself
Taxes Are The Way to Wealth Read More »
