Questions specific to small businesses, generally under 100 employees and revenues less than $1,000,000.

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1answer
44 views

Deducting SEP-IRA contributions as a sole proprietor with no employees

Is it possible to deduct SEP-IRA contributions from a Schedule C Form 1040? I was a sole proprietor with no employees. It seems like if I had employees, I would deduct it on line 19, for Pension and ...
0
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1answer
25 views

Deducting related educational trading expenses from LLC?

From what I understand, you need to trade full-time in order to deduct educational related trading expenses such as magazines, courses, or newsletter subscriptions. If I'm not a full-time trader but ...
4
votes
2answers
1k views

Why do banks require small businesses to open a business bank account instead of a cheaper personal one?

I understand the need to separate personal finances and the business finances, be it sole-proprietorship or incorporation. I also understand that in the former it's optional, but in the latter it is ...
2
votes
2answers
37 views

Applying for EIN when incorporated in another state?

I have an online startup that is generating revenue and now I have to file for taxes. I'd like to keep my PayPal separate from personal and keep it purely business so I want to sign up with an EIN. ...
1
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0answers
32 views

Business valuation for a service-based company - revenue based calculations, or something else [closed]

I'm trying to get a rough idea of what a valuation would entail for a small business that I've been a part of for the last 8 years. Our structure is two-fold: 1) We have a publication that receives ...
1
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1answer
58 views

Capital Gains in an S Corp

In this question about s-corp distributions, the answer was given that an s-corp taxes all profit as personal income. That is, there are neither distributions nor dividends which can be taxed at a ...
1
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1answer
37 views

Requirements for filing business taxes?

In her free time, my wife writes a food blog that gets a respectable amount of traffic. From time to time, businesses will approach her to sponsor a post about their products. At the end of the year, ...
2
votes
1answer
72 views

How long does a bank's “Know Your Customer” (KYC) process typically take?

When opening a U.S. bank account, the bank will investigate about the account owner, and this investigation is called 'Know Your Customer.' The goal is to prevent money laundering. My question is: ...
0
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1answer
44 views

Where can I find information about the relationship between the owner of a company and its business administrator?

Through the past years, working as a employee, I have managed to save some money and now I want to buy a company. I chose a restaurant, because I already have experience in this area. However, I do ...
1
vote
1answer
154 views

Simple income and expense report in gnucash

I do not understand nor do I enjoy accounting. I have a small LLC, and I have a QFX file from my bank that encompasses all transactions from 2013. I would like to import this, manually categorize ...
8
votes
3answers
218 views

What kind of taxes might I incur if I sell off intellectual property from my small software business?

For a little over five years (I started in fall of 2008) I've been developing an app for the iPhone/iPad, and it's been for sale in the App Store for all of that time. I'm in a position now where I ...
3
votes
1answer
66 views

Should I keep separate the capital used by my two businesses?

I have two kinds of business. I sell stationery and pants. Each business has it own capital. But I have trouble with the stationery business capital – some bad credits happened in the business. ...
8
votes
3answers
4k views

What to ask for on a business partnership?

I am being asked to provide technical expertise on a technology entrepreneurship. They are offering me equity of the business, in exchange of my work/commitment. I know they will require a capital ...
4
votes
1answer
115 views

Can a husband and wife who are both members of the same LLC file a joint tax return?

My question is basically summed up in the title. My wife and I are active members of a new LLC which also has other members. The LLC is taxed as a partnership, so profit/loss is simply passed through ...
3
votes
2answers
214 views

What's “wrong” with taking money from your own business?

Let's say there is a small business owner of a business that employs 30 people. From time to time, that business owner takes and/or borrows money from the business for personal expenses, like home ...
3
votes
1answer
228 views

What does the business term 'blue sky laws' mean? [closed]

I often hear 'blue sky laws' in reference to startup or early level businesses. What does it mean?
-3
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2answers
169 views

Does it make sense to incur a business expense just because it can be deducted?

I am trying to prove to myself that incurring expenses just for the purpose of writing them off never saves money. It is always better to not incur the expense at all if you can avoid it. This is my ...
-1
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1answer
91 views

Why does paying out all corporate income as salary reduces the risk of being labeled a personal service business?

This blog article on PSB outlines the rules clearly. But in one of the comments it says: However, if you are paying mostly salary to yourself, your risk is minimal even if assessed What is the ...
1
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1answer
193 views

Can I receive payments (EUROS) from my International clients in my savings bank account in India for my business services

I am starting a small international outbound sales campaign and will be selling my web development services. 100% payment will be received in Euros through wire transfers in a bank account or through ...
3
votes
1answer
114 views

Process for dissolving a recently-opened Colorado LLC?

I need help dissolving an LLC a couple of friends and I created. It seems as though we jumped into this much too quickly and unfortunately, things did not go as we had planned. I am in the U.S. and ...
1
vote
1answer
254 views

For a sole trader, what is the benefit of using a business bank account?

First of all: Are you allowed to have two personal current accounts with a debit card attached to each one? If yes, can a sole trader in the UK use the second personal account for business ...
9
votes
2answers
475 views

Employer wants a key man insurance policy on me, should I agree?

Friend is working for a small company as main person in charge of operations. The president is asking them to take out a key man life insurance policy on them. The benefit would pay out to the ...
2
votes
3answers
233 views

How to account for personal baby sitter?

My mother-in-law lives with my wife and me and baby sits our 5 month old baby. I pay her every week and I was wondering what makes the most financial sense for tax report/breaks/etc? I believe I ...
0
votes
1answer
415 views

How do I pay taxes on earnings from the sale of my Android app?

I'm under 18, so right now I don't pay any taxes. I had a paid app and I also just started advertising, so eventually I may be making income. I don't want to be evading taxes, so I want to know how to ...
2
votes
1answer
112 views

How do I account for money paid to colleagues out of my professional income?

I am resident of India and I work as a freelancer, developing software for Indian companies. Sometimes, I do the work along with a few other professionals like me. I receive the payments into my bank ...
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1answer
110 views

How do I calculate tax liability on the turnover of a small vendor?

I run a bakery with a turnover of RS 3.00 Lakhs in fiscal year 2012-2013. What is my tax liability on this turnover?
4
votes
1answer
353 views

Do I need to collect GST/PST for providing software services to companies outside of Canada?

I have a corporation registered in BC, Canada. I provide custom software development services to companies outside of Canada. Do I need to collect GST/PST ?
3
votes
2answers
300 views

Can I write off time I spent working on my business?

So, I'm a freelance web programmer by trade, which means that my time really is money. I, occasionally, work on side projects of my own and forgo the possibility of earning direct income for that ...
4
votes
1answer
621 views

How to report my revenue from Apple iAds and App Store sales, without an invoice?

For accounting purposes, we need an invoice for accounts receivables, but when you get a payment from Apple for iAd revenue and app sales, how do you issue an invoice ? Are there any specific ...
3
votes
2answers
1k views

How to start a business when you owe the IRS and Everyone else?

My history: In 2006 I was doing pretty well, my online ventures were doing around $30k profit a month however I am a programmer and did not run the business side of it well at all. (taxes, forming a ...
1
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1answer
317 views

Can I form a company to rent a car or apartment to my wife's employer for her to use?

My wife's job places her on long-term contracts (> 6 months) in different parts of the US. The employer currently pays for a permanent car through a popular car rental agency and a permanent room ...
1
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2answers
94 views

How can I estimate business taxes / filing fees for a business that has $0 income?

I'm looking for a good resource to understand the penalties I need to pay in order to get my business 'up to date' with the IRS. I called the NY state and I was able to determine the amount needed ...
3
votes
1answer
98 views

How do I pay my estimated income tax?

I've recently made the move from salaried employee to small business owner. Now instead of my employer sending in my taxes incrementally with each paycheck I need to pay my expected taxes quarterly. ...
3
votes
2answers
104 views

Does business income generated while physically present in NY count as New York Source income?

Question Is some or all of any business income generated from my Wyoming business qualify as New York source income while I'm physically present in NY? Background I run an IT consulting firm (LLC ...
3
votes
1answer
66 views

What approaches are there for pricing a small business?

How do you know how much a small business is worth? If someone were to sell their bed and breakfast (for argument sake), how would they know how much it's worth? ... or more importantly, how would a ...
2
votes
1answer
100 views

For qualifying for a mortgage, is it better to have a small business showing a loss or a pay stub with short history in the company?

My fiancee and I are trying to qualify for a mortgage. She is full-time W2 employee and I am a small business owner. My 2012 profit in the business was significantly less then 2011 (more than 20% ...
1
vote
3answers
8k views

Do Square credit card readers allow for personal use?

Prompted by this question, I began looking for evidence that the Square credit card reader could be used for personal transactions (transactions outside of a business context). Users of Square must ...
4
votes
4answers
293 views

Is there a no-fee way for Americans to send electronic payments to American small businesses?

currently I have a registered business with a client that pays me every two weeks. Normally I send an invoice, and he sends a check via snail mail. We would like to move this to something online. ...
1
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0answers
156 views

Accounting for escrow payments in Quickbooks?

I am using Quickbooks 2011 Pro. I want to bill my tenants ahead each month for a utility (water) that itself bills once a quarter in arrears. When the water bill arrives, I want to make the next ...
0
votes
1answer
272 views

How to set up my business as a self-employed contractor

I am a full time employee in New York City who does contract work on the side. Next year, I would like to set up a business for myself for this, with the expectation that I might become a full-time ...
1
vote
1answer
72 views

What is a trade exchange and are they reputable or not?

I am trying to understand the concept of a marketplace for B2B cashless transactions. What are some examples (if any) where participation in such a marketplace can prove equitably beneficial to small ...
2
votes
1answer
68 views

How do you account for a cash payment by a customer in which some is used for payment to a vendor?

I am using Quickbooks Pro 2011. I received a $750 cash payment from a customer, then used $150 of it to pay a vendor's invoice, creating a bank deposit of $600. I can't figure out how to credit the ...
0
votes
2answers
65 views

Are there loans for buying businesses?

You want a house or something, you get a mortgage. But what if you're buying up a hotel, or a restaurant? I see these things for sale online at reasonable prices but not so reasonable that I could ...
1
vote
4answers
138 views

Is it always bad to purchase a business you don't understand?

...YET. A business you don't understand yet. Say you're a random fellow. You work in, I don't know, a retail store. In so doing, you somehow build up enough money to purchase a restaurant that ...
0
votes
2answers
485 views

Income tax on my online drop-shipping business (India)

I am an Indian citizen and I run a semi-drop shipping business. The details are: I deposited 10 lakh through cheque/cash into my Indian savings bank account (PAN not submitted during account ...
6
votes
3answers
397 views

What are the ins/outs of writing equipment purchases off as business expenses in a home based business?

I'm currently self-employed doing computer programming work. As part of self-employment I'm learning about filing taxes quarterly (not fun) and also writing things off as business expenses ...
5
votes
1answer
451 views

Funds in closed bank account have gone to the government

My son was advised by his accountant to close his limited company and start a partnership instead. He did this but he was not told that he needed to clear the company bank account - he left this open ...
1
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1answer
2k views

How much can you write off on a car lease through a LLC?

If you lease a car over buying it, how much can you write off of the car lease for the LLC? Given that you can lease it through the business, is that a more wise decision than buying financially? ...
6
votes
1answer
97 views

Accounting for payment into wrong currency account

I deal with clients in several countries and have two bank accounts in two currencies. Recently, I sent out an invoice with the wrong bank account number, so a client invoiced in SGD made a payment ...
1
vote
1answer
1k views

Indian Citizen want to work as a freelancer for Europe. How to pay tax in India?

I got an offer to work as a freelancer for a European company. In Europe, its like you need to set up a small legal entity on your name but is this the same in India? How can i do freelancing in India ...