Small Business Advice Blog

Filing your taxes on time is essential to avoid potential problems and penalties. Late tax filers may face various consequences, such as additional fees, interest charges, and even legal issues. By filing your tax returns promptly, you demonstrate your responsibility as a taxpayer and ensure compliance with the law. Timely...

Have you ever experienced the frustration of not being compensated for your valuable services or products? Or perhaps you’ve faced the challenge of juggling unpaid bills while holding onto a substantial amount of outstanding accounts receivable? If so, you understand the detrimental impact this can have on your business’s financial...

Many tax practitioners overlook the importance of understanding estimated tax payments when advising their clients on tax savings. However, with the current increase in the penalty rate for underpayments of taxes to 8%, taxpayers are now motivated to dive deeper into the world of estimated tax payments and discover their...

What is a C-Corporation? A C-Corporation, also known as a C-Corp, is a legal structure for a business that is separate from its owners. It is considered a separate legal entity, which means it has its own rights, liabilities, and obligations. One of the key features of a C-Corporation is...

If you are running a business, you are generating income and paying for things like, payroll, equipment, marketing, and more. With a constant inflow and outflow of money, it becomes imperative for small business owners like yourself  to make sure more money is coming into the business than what’s leaving...

The importance of reviewing your tax return before your tax preparer presses the “file” button cannot be understated. Catching potential mistakes before your return is filed can help you avoid those unwanted IRS or state tax notices and more.  This article provides four reviewing tips that even the most novice...

It is common, for businesses in the start-up phase to have a handful of high paying clients. The mistake in starting out in this is in the the owner remaining comfortable at this level.  This is frequently seen with consulting type of businesses with only a few employees, who may...

Whether we like it or not, paying taxes is an inevitable part of being a business owner. If you own a partnership, this means that the result of your business operations are taxed on your personal tax return.  While you won’t be able to avoid income taxes completely, you may...

One of the most important aspects of running any business, but especially a partnership, is making sure you remain tax compliant.  Tax compliance refers to meeting all the tax filing and other reporting requirements timely and completely.  If you are operating a partnership, this article will be a great quick...

Owing taxes can be financially painful which often leads to physical and relationship problems and more.  Tax delinquency can cause feelings of embarrassment and make others lose respect they had for you.  Whether you are an individual who may not be affected as emotionally as others when dealing with tax...

Capital gains is the income made from selling capital assets, including real estate, for more than their basis.  If you are a homeowner looking to sell your home during these peak real estate times, what does this mean for you and your taxes?  This is a question that many are...

Your ability to prove whether or not you have a business can greatly impact the deductions you’re able to take on your tax return for expenses you incur in carrying out your activities.  In this article we discuss a few of the factors the IRS considers when determining if you...

It is important to assess your real-estate flipping activities before you take action to ensure success. In this blog, we will share some tips and tricks to make certain that you are on the right path to a profitable investment flip. 1. You must understand your lending terms. If you...

Have you ever found yourself wondering what the differences are between a certified public accountant (CPA) and an accountant?  You may have even, mistakenly, thought them to be one and the same.  Individuals seeking to improve their financial and tax lives, small business owners seeking to grow, and/or managers seeking...

How do you know if you have the right CPA on your team? It is possible to outgrow your CPA or need a more qualified CPA. This article will give you some insight on how to assess your business needs and how to choose the right CPA for your small...

1. Interviewing Your Tenants MATTERS It is important to have a protocol set in place when choosing the right tenant for your property. Go the extra mile when interviewing your tenants because choosing the wrong tenant can fall back on you. You want to make sure they are taking care...

1. Keep Track of Your Expenses Having good record-keeping allows you to be confident that you have all of the expenses that you have incurred throughout the year. Using a cloud-based accounting software can help you track your income, expenses and improvements you make to your property. 2. Depreciation –...

In our last article, “What is Virtual Currency and Should I Invest in it?”, we explained cryptocurrency and the benefits and risks involved in investing in it. This article will explain the tax effects of exchanging cryptocurrency. The year 2020 was the first year the IRS began asking taxpayers to...

If you have ever wondered about all the talk about virtual currency, what it is and how you can profit from it, then you’ll appreciate this article. In this article, we will explain what virtual currency is and detail the benefits and risks involved in investing in it. What is...

Are you a consultant, railroad worker, truck driver or other business professional who often travels away from home? Then, this article is for you if you would like to make sure you are rightfully claiming all your travel expenses. You will also learn in what scenario, you may not be...

The amount of taxes you pay each year is greatly impacted by your filing status. Selecting the best filing status, while taking certain aspects of each into consideration is key to maximizing your tax situation. Most couples fail to meet with their tax advisor before they get married to gain...

One of the top questions you should ask yourself when starting a business is, “how do I take money from my business and what are the tax ramifications of doing this?” This one question is loaded with a great opportunity for tax planning when you approach your tax advisor with...

Do’s for your S-Corporation  Be sure to file the Form 2553 and that it gets accepted by the IRS  Pay yourself a reasonable compensation for services you are performing to your S-Corporation Track all shareholder loans and/or advances you make to your S-Corporation Keep good accounting records that track all...

Medical Deductions:    Limited by 7.5% of your AGI. Example, if your adjusted gross income is $100K, your medical deductions would have to be over $7,500. If your medical expenses totaled $8K for the tax year, your medical deduction would be only $500. State and Real Estate Property taxes are...

Background: Ownership in a corporation is evidenced by the amount of stock owned.  The stockholder’s cost of stock is based on the amount of cash given or the cost of property being contributed to the corporation at the time the corporation is created.  Shareholders are rewarded for their investment via...

Whether you are new to owning an S-Corporation or have been operating your business as such for a while now, chances are that you have heard about the requirement of paying owner-employees a “reasonable compensation.” Many small business owners may still not fully understand this concept and therefore, may be...

There are four different ways you may be required to file a federal income tax return. Knowing this will save you penalties and interest that could be owed on tax liabilities owed simply because you thought you didn’t have to file!

Knowing when your times up for claiming your young adult is necessary to ensure you’re not losing out on valuable credits and tax deductions that could be applicable to you if you’re still able to claim him or her. The opposite could be an issue as well, and it is...

The business structure, S-Corporation, is one of the most complex business types that small business owners love, but may not fully understand how to properly operate from a tax compliance standpoint. This article discusses the top mistakes we see business owners making with their S-Corporation. Our list is not in...

In this article, we give some ideas you can take into consideration when determining your salary as an S-Corporation owner. These suggestions are based on you already having a basis for determining what your reasonable compensation range would be based on the factors we discuss in our previous article, “Reasonable...

Am I able to write off my donation? This is a common question that generally is not asked until it’s too late.  Many dollars have been lost because the necessary financial records required to qualify for such tax saving actions were not maintained and/or proper documentation was not provided at the time...

  Selecting the right tax professional can be just as important as choosing the right person to marry.  Okay, maybe not as serious as marriage, but it is pretty important.  Think about it.  Since more than likely, you are not an expert in tax,  you have to find a professional you feel comfortable...

Once an individual makes the decision to start a business,  usually the next decision that has to be made is determing the type of business they will have.  There are many options available,   This is a common question among new start-ups, as well as those already operating their business, and...

 If you are of the many taxpayers who owe taxes year after year and never really understand why, this article will help to uncover some potential reasons why, as well as help you to avoid this problem going forward.

Every year small businesses become victims of employee theft. This is particularly true in small business environments where a single employee manages all the finances. Often, there are no “checks and balances” in place to verify the accuracy of certain transactions performed by such employees. It is important to protect...

Most small business owners understand that they need to keep their financial records in order.  But, they mistakenly start out using the services of a bookkeeper or an accountant in an effort to keep costs low. However, a Certified Public Accountant (CPA) may be more in line with what your business may need....

The emotional stress that comes with dealing with the loss of a loved one can be compounded if you have to deal with an associated financial loss as well. This can happen if you are a child who has lost a parent who provided for you or a homemaker who...

If you are of the small group of individuals who realize the importance of life insurance and have actually decided to purchase a life insurance policy, it is critical that you understand the options available to you, as well as how each type of insurance may fit your priorities, needs and...

Sifting through an overabundance of financial information available can make finding the solutions that best suit your overall financial plan challenging and difficult.  However, making solid decisions about how to accomplish your long term objectives should not be a nerve wrecking process that ultimately makes you insecure about your choices....

One of the main causes of federal income tax troubles is not paying enough income tax throughout the year.  The United States income tax system is a “pay tax as you go” type of system.  In other words, taxes must be paid as you earn income (wages, salaries, self-employment income,...

  One common challenge amongst individuals is making the most of every dollar they earn – money management.  Even the most educated persons find themselves struggling with improving their finances.  While there are many reasons for this, one primary cause would be our upbringing (what we were taught about the...

… 6 Pitfalls Start-Ups can Avoid to Grow Beyond Your 1st Paying CustomerRead More »

  Many individuals agree that saving for retirement is important, but unfortunately, not many people actually put money aside for their future by participating in a retirement plan at work or one that has been setup for their business..  If you are one who falls in this category, it is...

Getting ready to file your tax return? One way to make sure this process goes as smoothly as possible is to make sure you have all the documents necessary to prepare your return.  Getting your paperwork organized helps you avoid delays when filing your return, and also ensures your return...

Many unwanted tax problems can surface for individuals working as freelancers and/or contractors.  This list was created to bring awareness to the top misguided actions individuals often make in this type of situation.

What’s the truth about retirement planning? There are many myths about retirement, including the belief that social security will be enough to provide income during this time.  However,  social security was only designed to meet your basic needs during retirement. If you are currently earning over $100K in salary, it...

Many business owners operate their business without giving consideration to how they would handle the loss of a key executive/leader should they pass.  Not giving any thought to this factor, can leave your business in a financial catastrophic position should this happen.

Move your firm from start-up to growth…. Starting a business is one of the most exciting endeavors you could ever undertake, but starting is the easy part.  The challenge comes when you begin to seek ways of  growing your small  business.  Often the challenges and seeming road blocks you encounter...

Whether you are in the start-up phase of business or the expansion phase, there will come a time when you will consider getting a business loan to help with cash flows or to purchase equipment, if you have not already. This blog will provide you with information that will help...