Common Small-Business Tax Snafus – Keeping Things Separate The most common piece of advice given to (and ignored by) new small- business owners is to keep everything that’s personal completely separate from the business right from the very start. In addition to making your book- keeping job a heck of a lot easier, it can … Read more
Common Small-Business Tax Snafus – Tracking Travel Expenses Travel expenses are among the most common small-business tax deductions. They’re also one of the biggest audit areas, for businesses big and small, in any structure. For that reason, it’s critical that you keep good records of your expenditures; even better, maintain a log to keep track … Read more
Common Small-Business Tax Snafus – Salaries, Dividends, or Loans? With sole proprietorships and partnerships, it makes no difference when or how much money you take out of the company, at least for tax purposes. After all, you personally pay tax on your full share of the company’s income every year. These business structures don’t allow … Read more
Common Small-Business Tax Snafus – Employees Versus Contractors One the biggest trouble issues facing new and small businesses is that of employees and independent contractors. It’s cheaper and easier to deal with contractors: you can hire them only as needed, they don’t get benefits, you don’t have to report or pay their payroll taxes, and … Read more
Common Small-Business Tax Snafus – Don’t Be Afraid of the IRS Most people, upon getting any kind of notice from the IRS, immediately feel fear and panic. The horror stories are out there: individuals and companies that were audited and left bankrupt after a grueling investigation that ended with a giant tax, interest, and penalty … Read more
Retirement Plans – Choosing the Right Plan for You The first thing to consider when you are trying to choose a retirement plan for your business is yourself—your financial situation, your goals, your age. After all, this is your company, and you deserve to reap financial benefits. Ask yourself why (despite the administrative and fee-oriented … Read more
Retirement Plans – Keogh Plans As long as your business isn’t incorporated, you can establish a Keogh plan for retirement savings. These plans let you put away more money than either SEPs or SIMPLEs, and they’re also much more flexible; for example, these give the option of either defined benefit or defined contribution, while the … Read more
Retirement Plans – Simplified Employee Pensions (SEPs) When it comes to simple plans, SEPs also fill the bill. These plans were especially designed for small-business owners, with the goal of making it as pain-free as possible for them to offer retirement benefits. In fact, the only IRS form you have to fill out is Form … Read more
Retirement Plans – SIMPLE Plans The name says it all (or at least the acronym does): The Savings Incentive Match Plan for Employees, a.k.a. SIMPLE, is usually easier to manage and easier on the bank account than are many other types of retirement plans. Their drawback is that contributions are limited, and you may not … Read more
Retirement Plans – Individual Retirement Accounts (IRAs) For decades, IRAs have been among the most popular ways to put away money for retirement while getting a current tax deduction. You also don’t have to pay any current income taxes on any money the account earns— until you start taking distributions, that is, and then you … Read more
