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

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2
votes
1answer
118 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% ...
3
votes
4answers
24k 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
309 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
vote
0answers
257 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 ...
1
vote
1answer
483 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
74 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
102 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
74 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
146 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
889 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
622 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 ...
6
votes
1answer
1k 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
vote
1answer
5k 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
188 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
2k 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 ...
0
votes
1answer
151 views

Can I set up a retirement plan for an LLC with negligible income?

I am currently working as a W2 contractor, with no access to a 401(k) plan through the contracting agency. However, I do own an LLC, with, unfortunately, negligible revenue earnings. Here are my ...
1
vote
2answers
483 views

How can I get a mortgage as a small business owner?

My partner and I are considering buying a home. We're both half-owners in our own small software company. Our business has been around for three years, has always been profitable and profits have more ...
4
votes
1answer
229 views

Rules for SEP contributions in an LLC?

I am located in NY. I have a PC (my business) and an LLC which holds the office space for my PC. The owners of the LLC is my self and my son. I am the sole owner of the PC. What are the rules of ...
13
votes
5answers
10k views

A merchant requests that checks be made out to “Cash”. Should I be suspicious?

My barber accepts only cash or checks made out to "Cash". Is there a likely legitimate reason she might want the checks made out to "Cash"? Or am I helping her hide her revenue from the IRS?
4
votes
2answers
1k views

Taxes owed on funds raised through Kickstarter for a film I plan to shoot?

I'm looking to run a Kickstarter campaign and I was curious about a few things. Obviously you'll need to pay taxes on the amount raised, if you don't spend it all producing something (expenses). ...
5
votes
1answer
442 views

Determining the minimum dividend that should be paid from my S corporation

I am the sole shareholder and only employee of an S corporation. I understand that all profits of the corporation are passed through and taxed as income to me. I also understand that all dividends ...
1
vote
1answer
6k views

What does “LLP” stand for in the name of an organization?

What does LLP stand for? As in the example name "Flood Law Group, LLP".
4
votes
1answer
213 views

Paying Federal Income Tax without Witholding

I receive payments from iTunes Connect, and no income tax is being withheld from those payments (I am receiving the entire earnings), and I have been trying to find out how I pay Federal Income Taxes ...
1
vote
1answer
1k views

How to “pay” one self in a single member LLC w/ separate checking account?

I own a side company creating web apps. I formed an LLC, registered an EIN and opened a business checking account. Recently, I sold a copy of my software for let's say $10,000. Now, since everything ...
3
votes
1answer
156 views

Married filing separately

We recently got married and I'm thinking ahead, just because I want to be prepared. :-) We both work FT jobs, but I also have a side company creating web applications. It's a single member LLC that ...
0
votes
1answer
109 views

Form 8829 and Multiple Businesses

I work from home and had income from 3 sources 1) as an employee of an S corp (which I'm a small part owner of) main source of income 2) Consulting done under my name individually, separate from my ...
9
votes
5answers
17k views

Any practical difference between “personal checks” and “business checks”?

I need to order checks for my LLC. I wrote maybe 5 paper checks last year (by hand, not printed). So it doesn't make sense for me to spend $30-40+ on "business checks" if I can spend $5-10 on ...
10
votes
2answers
7k views

Indian citizen working from India as freelancer for U.S.-based company. How to report the income & pay tax in India?

I am an Indian citizen and I work from India as a freelancer for an U.S.-based IT company. I am getting monthly payments directly into my Indian bank account. My colleagues' monthly payment come to my ...
1
vote
1answer
110 views

US Simple donation taxation question

If i take in 50k of income and donate 40k to a 501(c)(3) non-profit, how much money will have to pay taxes on? I am a sole proprietorship. Thanks!
1
vote
1answer
249 views

Track uninvoiced (pre-invoiced?) expected income in Quicken

If I get a freelance assignment, at the point of the assignment I expect the income for the work to eventually be received. But there is no invoice yet so I don't think of it as a receivable. What is ...
4
votes
1answer
163 views

How does LLC ownership work in relation to U.S. tax law?

If an established LLC business offers ownership to a new member, will that member owe federal tax even though that member has still not realized any gain? Let's say for example the LLC is worth $10M ...
4
votes
2answers
3k views

What are the tax implications of lending to my own LLC?

Well, as I mentioned before, I'm buying rental property under the name of my LLC (California). I used cash for the purchases, but the initial investment I made in the company was not enough to cover ...
0
votes
1answer
363 views

Can a single-member LLC have a fiscal year not as the calendar year?

Well, the title pretty much is the question. I'm in California, and its a disregarded entity. It matters for the LLC tax, and a positive answer will save me $800 cash. With references please, ...
3
votes
3answers
1k views

Is it okay to issue myself a 1099 from my LLC, of which I'm the sole owner?

I own a small publishing company and occasionally publish my own books. I want to track royalty expenses on the products I've written, so my plan was to pay myself royalties, book it as a royalty ...
1
vote
2answers
633 views

How to structure a loan for my owner-financed business sale, so we are paid sooner than later?

My wife and I are in the process of selling our business to a buyer. We have agreed on an amount to sell the business for, and to owner-finance the balance. The buyer has already taken over ...
5
votes
4answers
9k views

Deductible expenses paid with credit card: In which tax year would they fall?

If I paid my business expenses with a credit card during the month of December, which year can I deduct them from my taxes? 2011 (when the purchase was made) or 2012 (when I paid off the credit card)? ...
1
vote
1answer
65 views

Resources online to help with filing income taxes that include a small business?

My wife an I usually file taxes ourselves using the 1040A (with the standard deduction), but she started her own business this year selling jewelry. Most people are recommending to use a CPA for help ...
3
votes
2answers
2k views

Is it ok to use a check without a pre-printed check number?

I opened a new account for my business and got a bunch of starter checks. They have the routing and account numbers preprinted with MICR font and magnetic (I presume...) ink, but they don't have a ...
4
votes
1answer
708 views

How to deduct operational loss from my personal income tax?

This questions starts with "How to" but I will accept any answer as "if I should or not". My question is related to a business that I have been running this year. I have not been very successful at ...
3
votes
2answers
193 views

Better ways to invest money held by my small, privately-held Canadian corporation?

I own a small, privately-held corporation and am looking for ways to invest my corporation's money more effectively. The problem is the government taxes passive investment income inside a corporation ...
2
votes
3answers
168 views

Proper “Legal Services” insurance - is there such thing?

There's the "Prepaid Legal", and my company offers a "MetLaw" program as a benefit, and I wonder how useful are they, and if there are more? I'm looking into a program that will cover my needs for ...
3
votes
1answer
363 views

How to handle Client Deposits in Xero (or any finance software, really)

This is likely a novice question and (hopefully) easy to answer. I'm a web & software designer/developer and using Xero to manage finances. With new contracts I require a deposit of 30% of the ...
6
votes
1answer
390 views

I have a 401k loan used for a house down payment and now I am changing jobs: What should I do?

I guess this could be a cautionary tale, but I am hoping it can be remedied. I had a job that I am leaving, but I had took a 401k loan to put down on a house. I don't have the money to pay it back ...
2
votes
4answers
2k views

Deposit a cheque in an alternative name into a personal bank account (Australia)

I'd like to be able to deposit cheques payable to a business name into my personal bank account. I do not have a company (Pty Ltd) and at this stage it's probably more trouble than it's worth to set ...
9
votes
3answers
307 views

Does that mean I'm fooling the US gov?

I'm a foreign student studying in the US. Soon, I'm a launching a website where an American ad agency will handle posting the ads on it from American advertisers and the revenues are supposed to go to ...
6
votes
2answers
346 views

I may earn a lot of cash soon through self-employment on a lucrative project. How to handle the tax?

I'm in Canada, and am young and don't know anything about finance. I've been working part-time as a software consultant for a friend who's starting a marketing company. He recently landed a job with ...
7
votes
1answer
278 views

How does one's personal credit history affect one's own company's credit rating?

Quick background: I have no intention whatsoever on actually getting any loan. However, to accept online credit card payments (eg. via Paypal Payments Pro), merchant account providers determine ...
5
votes
2answers
333 views

Outstanding cosigned loan and Bankrupt ex-partner

Background: I started a business (LLC) with a partner about 3 years ago. We took out a business Line of Credit. Because the business didn't have credit of its own, we both cosigned. 1.5 years ago ...
4
votes
1answer
297 views

Foreign company incorporated in US and W9

I own a translation company and my clients are reluctant to contract a provider based abroad, although I have a US Bank account, US tel, US PO Box (I lived in US for a while). I need to be able to ...
7
votes
1answer
1k views

Borrowed money from a friend for my business, & can't pay it back. Got a lawyer's letter. What can happen?

I borrowed some money from a friend of mine for use in my business and I am not able to pay back to him now due to the bad business. Actually, he put the money into my business first and later decided ...