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

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2answers
96 views

How do owners in a partnership earn income?

I am 1 of 2 partners (no employees) in a recently registered consulting business. Essentially we are 2 former sole proprietors joining forces. We are currently working on forming our partnership ...
1
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1answer
47 views

As a small business owner should I have a separate account for payroll? [closed]

Note: I'm currently using cash basis accounting. Just recently I've started using QuickBooks Online to keep track of my profit and loss as well as pay my employees. The problem I'm facing is that ...
1
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1answer
47 views

New business owner - How do taxes work for the business vs individual?

I have a business that is in it's 2nd year and has now made $400ish. I have the money just sitting in the business bank account. I do have a business partner. A couple of questions? If we leave ...
0
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2answers
45 views

What should one look for when opening a business bank account?

I've created an LLC under my name for my contract work (taxed as a sole proprietorship). Because of this, I'm planning to open a Solo 401k, and due to that I'm planning to pay myself income based on ...
1
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1answer
33 views

Tax Allocation - Business Asset Transfer

I'm selling my sole proprietorship. It is a technology company with few / no tangible assets or customer base, mostly just software. This is being done as an "Asset Transfer" to new owners in another ...
0
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1answer
116 views

Start a Holding Company? [closed]

I'm 23 I've recently graduated college with two bachelor's degrees and have studied finance extensively in my spare time. I work as a software engineer, and even though I don't hate the work I know ...
1
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0answers
34 views

Can a business operate in one state ie. NY and have an office in another?

My prospective business is going to operate in NYC but due to unforeseen consequences my "office" or base of operation will be in another state. What sort of consequences or altercations can I ...
0
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1answer
48 views

Would the purchase of a car for a business through the use of a business loan be considered a business expense?

So I want to purchase a vehicle through a business loan. The loan would increase my liabilities this I understand. My question is, if I were to use the extra capital to buy a vehicle, would that be ...
1
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0answers
93 views

Salary vs Dividend: is this example wrong?

I saw a link to a great article in old (2012) question. http://vereecke.ca/index.php/articles/will-that-be-salary-or-dividends/ I've tried understanding the article well, but I think that the author ...
1
vote
1answer
22 views

Equity - date of offer, or date of joining?

I made major contributions to a startup and am being offered equity - 11% of total stock. I have been at the company for 2.5 years, and am being offered equity with a 4 year vest, starting 1.5 years ...
0
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0answers
47 views

Pros and cons accepting partial ownership of company as opposed to inheriting

My father owns property (buy to rent) and manages this through a small business in the UK. He probably has assets worth in the region of 750,000 GBP but is also still paying down the mortgages on each ...
2
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1answer
60 views

Company registration for Small business

I am doing trading of goods and also provide services to various organisation. The companies would like to have all future payments made to an organization to which I am proprietor and not directly to ...
2
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1answer
46 views

How to move (or not move) an LLC from Illinois to New Mexico?

I'll be moving from Illinois to New Mexico soon and am wondering the best way to deal with my LLC. It is a design services LLC, electing S-Corp taxation. Currently revenues are all over the place - ...
0
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0answers
23 views

Are gross receipts tax (New Mexico) charged on services performed out of state / for out of state projects?

I'll be moving soon to New Mexico, but keeping architectural/design projects in Illinois and possibly elsewhere. Would I need to pay the gross receipt tax on those project which are out of the state? ...
0
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2answers
85 views

What are the “perfect” conditions for selling a small private business?

As the title says. What the general opinion seems to be is that now is the best time ever to sell a small business because of low: interest rates, tax rates, and inflation, plus many large M&A ...
1
vote
1answer
29 views

What is the contribution limit for a SEP-IRA?

I have a small business that will file taxes as an S-Corp for the year of 2015. The company has 1 employee (me). I pay myself a decent salary. In order to bring the company's taxable revenue down, I ...
2
votes
0answers
40 views

Valuation of service-based small business

I have a small transcription business that I want to sell, but I'm not sure how much to ask for it. Searching around for evaluating businesses gives me lots of formulas for calculating the value of ...
0
votes
1answer
57 views

What kind of taxes should I expect from a business loan interest?

For example, if I lend a small business $100,000, and they'll pay me back $10,000 in one year. How would I expect taxes to be done? Would the $10,000 be considered ordinary income, or capital gains, ...
0
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1answer
64 views

Raising Funds: What happens when you issue new shares by adding authorized capital?

Suppose, I have a company Authorized capital - 100,000 Indian Rupees. Divided into 100 shares - 1000 Indian Rupees each. 2 Directors Totally. Director A holds 75 Shares and Director B holds 25 ...
10
votes
2answers
3k views

Can my US company buy my foreign company for $1 USD?

I'm a non-US resident and I'm the owner of a Delaware C-corp Inc. I also own a company (equivalent to LLC) in the EU. Although I could "sell" or transfer ownership of my EU company to my US company ...
1
vote
1answer
49 views

Income and taxes with subcontracting?

If I'm a 1099/independent contractor and I need to contract a sub portion of that work to another independent contractor, does that "income" get taxed twice? As in when I bill the work back to the ...
2
votes
1answer
72 views

At what point do recurring small business losses become a problem with Canada Revenue Agency?

How many times can a small business owner claim an overall yearly loss, when filing income taxes, before the Canadian Revenue Agency (CRA) will consider it a problem? A friend who runs her own small ...
3
votes
1answer
115 views

How should I be taxed on my returns on investment in capital?

If I paid a business owner $10000 for the purchase of capital and in return and am being paid $150 per week for the next two years in return, how do I file these returns? Using a 1099-MISC? Edit: ...
1
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0answers
64 views

What can I claim when there is a loss in the business?

I purchased 49% shares of a LLC business(Paid $150,000) and the business is claiming a loss of $ 130,000 for the 2014 year. I worked full time at the business but did not take a paycheck at all. Can ...
2
votes
1answer
158 views

Square reported my credit card transactions as personal income?

I run a TNT Fireworks tent one week every summer and use Square to process my credit card transactions. I've had no issues with that setup until this year when I received a notice from the IRS ...
0
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0answers
15 views

How to book past year's transaction, performed in the current year?

I have a small business. I contributed $1000 towards SEP IRA for year 2014. However, the transaction was done in January of 2015 using the retained earnings of 2014. Obviously, this money is tax ...
2
votes
2answers
131 views

How is salary of an owner get determined in a small business?

How does a salary of an shareholder (who is also President/Owner in the company) get determined for a small business Example situation: Owner of Company: owns 90% stake Investor in Company: owns ...
0
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1answer
116 views

1 EIN doing business under multiple business names

I have 2 small business LLC's registered in Wisconsin, each with their own EIN. Call them Company A LLC and Company B LLC. I'm converting Company A LLC into an S Corp. Company B LLC will have it's ...
7
votes
4answers
644 views

Why use accounting software like Quickbooks instead of Excel spreadsheets?

Some friends and I are starting a small landscaping cooperative, and are thinking about how we will manage accounting. Places we've worked in the past have used Excel spreadsheets to manage all of ...
2
votes
0answers
166 views

Accounting for small business inventory: different beginning inventory

I own a small cottage business selling sports equipment. It's not my primary job, and last year I only sold $500 of equipment. Here's the issue I'm facing: for the first time this year, I'm trying ...
1
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0answers
44 views

Do I have to file two tax returns if I am employed and self-employed?

I am employed full-time by an employer that does tax deductions but I also work freelance on the side which I do have a business number for and collect HST. I know I have to fill out the HST forms ...
1
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2answers
340 views

Is there any way to transfer student loan debt to my independent contracting business?

I just started my first contracting business, and wanted to be able to find a (legal) way to keep the money within the LLC but still pay down my student loan debts. Basically I'd really like to use ...
2
votes
1answer
185 views

Starting a side business slowly

Inspired by this question and this question. I have been looking at some ways to try to earn extra money on the side to assist in my finances, and have come to the conclusion that the best way would ...
3
votes
3answers
270 views

How to treat miles driven to the mechanic, gas station, etc when calculating business use of car?

I have a home-based business. If during the 2014 tax year I drove a car: C miles for car-maintenance errands, B miles for business errands, and P miles for personal errands, if the total miles ...
2
votes
2answers
164 views

How to pick a state to form an LLC in?

I'm looking to form a company with a friend of mine. I'm living in Colorado and he's living in Oklahoma. We want to start up a website that offers a service and we want it formed under an LLC. For ...
0
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1answer
74 views

Reporting software subscriptions

I have some software subscriptions for my indie developer business (Sole Proprietorship -- file as an individual). Xamarin and MSDN. I generally pay for a year at a time. The amounts involved are ...
6
votes
1answer
270 views

Student loan debt and business owner: What's the best loan-payoff strategy?

I graduated from my doctoral pharmacy program 1.5 years ago with ~215k of student loan debt. So far, the balance has been paid down to 170k. The weighted-average of the interest rates is 7%. ...
1
vote
1answer
157 views

How can I import customers and invoices from a previous year's Gnucash file?

I've been using Gnucash for the past year for small business accounting as a self-employed contractor. I've read that it's a good practice to create a new file for each year. Now that 2014 has ...
1
vote
1answer
91 views

I am selling my business, are there ways to (invest or spend) profit to save on tax cost?

I have multiple interests, through my broker, for the sale of my business. Are there laws that allow me to save on taxes by doing specific things with the sale money? Thank you!
3
votes
1answer
176 views

How to get cash for shares of a small but successful business?

I am owner of a portion (5%) of a small business. I acquired my shares as 'sweat equity' being the creative lead on the project. Essentially, I want to get cash for my shares. At this point in my life ...
1
vote
1answer
174 views

Can I have a side income without registering it as a business

I am full time employed. If I want to generate some income from a side hobby-business by buying and selling gift cards, at what point in time do I need to register as a business/corporation with the ...
2
votes
1answer
72 views

Legal requirements to sell design content, artwork and also freelance in India?

I want to start a website where I can sell my digital artwork, 3D models etc at the same time use the site to get freelance graphic design work.I know how to go about it technically but what are the ...
2
votes
1answer
84 views

End-of-year purchase deductions

I'm a sole proprietor / contract employee (developer) in Texas (United States) and am planning to make a new hardware purchase. I remember being told that purchases made in the last quarter of the ...
2
votes
2answers
240 views

Is my Roth-IRA still valid after if the business no longer exists?

I have a Roth-IRA from my company that is no longer in business. Is it still valid for me to contribute to it or do I need to change it?
7
votes
3answers
432 views

How high should I set my KickStarter funding goal in order to have $35,000 left over?

I'm creating a KickStarter to raise enough funds to take 3 months off from my full-time job and finish an iOS game that I've been working on for about 3 years now. Put simply, all I need is about ...
1
vote
3answers
114 views

Independent IT Consultant with annual fees less than 10lacs

I have started as an independent IT consultant recently. Since I will be way below the 10 lacs exemption bracket, do I need to have Service Tax Number? Also is it mandatory to get this number and ...
-1
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1answer
332 views

What are the pros & cons of buying a car as a business vehicle

I am planning to purchase a vehicle in the coming months. I have a business of my own formed as a S-corp in Virginia. I will be using the vehicle to commute every day to and from work and for other ...
15
votes
4answers
7k views

Will depositing $10k+ checks each month raise red flags with the IRS?

I am a freelancer that runs a small design business (LLC) and I have one client in particular that I regularly do more than $10k per month worth of business with. Sometimes I'll deposit a check for ...
2
votes
1answer
62 views

Can Health-Releated Services be a Business Expense?

I own a small S-Corp. I am considering subscribing to a monthly meditation service ($5/month) to help me with my focus, creativity, etc. 1 - Can I charge this on my business account? 2 - Is this tax ...
-1
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1answer
80 views

Pre-valuation of the company [closed]

I am planning to start a company, but it's just an idea with no revenues. Hence, if I approach angel investors 1) What should be the pre- and post-valuation of the company after investors are ready ...