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

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5
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1answer
364 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
5k 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
207 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
147 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
107 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 ...
8
votes
5answers
14k 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
6k 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
104 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
233 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
159 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
319 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
565 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
8k 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
59 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
678 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
189 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
149 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
320 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
362 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
3answers
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
283 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
338 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
237 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
303 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
286 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 ...
9
votes
1answer
1k views

Can I use my Roth IRA to start a business?

I've recently been reading up on Roth IRA to Self-Directed IRA plans. And I've seen a few places that mention their use as a seed-fund to start your own business.. Where can I find the parts of the ...
5
votes
3answers
1k views

I am the sole owner of an LLC. Does it make a difference if I file as an S-Corp or a sole-member LLC?

As an LLC with one owner, I had the option of filing using Schedule C on my household taxes, effectively treating business income (in this case, losses) as I would a sole proprietorship. My plan had ...
7
votes
1answer
563 views

When it comes to doing business taxes, do bank statements and bills work in place of receipts?

Just at the beginning of this year, I started a business (not fully, but I've started doing jobs for it). Up until March, when I did my personal taxes, I had no idea what kinds of things I could write ...
1
vote
1answer
226 views

How to represent “money down on new contract” in general journal (general ledger)

How would the following scenario be represented as a general journal entry? Jan 1, 2011: Customer signs contract for $1000 and pays $500 as a down payment and agrees to pay the remaining $500 at a ...
1
vote
1answer
434 views

How to represent “out of pocket” purchases in general ledger journal entry?

If you use personal money to pay for expenses (advertising, equipmemt), how do you represent this in a journal entry? Normally, if the money was coming from the business, you would just decrease the ...
0
votes
1answer
2k views

Where on schedule C should a PO Box Rental fee go?

I'm filling out my US Income tax forms and I am trying to decide where on Schedule C to put the expense for a PO Box Rental. My first guess was "Communication," but I'm not sure. "Office Expense" or ...
2
votes
1answer
13k views

How to record business income tax paid, in QuickBooks?

This is not a personal finance question, but I don't see a StackExchange site dedicated for business finance/accounting. So I'm asking it here. I run a small business (LLC) and using QuickBooks for ...
4
votes
1answer
96 views

What are the some banks for businesses looking to handle *everything* online?

My business works with contractors and customers around the world and I have plans for long-term travel for myself. The small local bank I'm currently with doesn't seem like a good fit for my company. ...
6
votes
2answers
182 views

Should I take contributions out of my Roth IRA to live off of?

My current contract is ending, with no future job immediately lined up. I have a few thousand dollars in my checking/savings accounts, and a significant amount of cash in my Roth IRA. I have no debt. ...
3
votes
2answers
142 views

In which country can I set up a small company so that I pay a lower rate of corporate tax?

I read in some news articles that some large corporations manage to avoid large corporation tax in this way. Is it possible to set this up for a small company?
1
vote
1answer
129 views

Costs associated with starting an LLC in Massachusetts?

I am going to be starting a LLC business (wedding photography) and I was curious about the associated costs. The business will be registered in Massachusetts. I understand that an exact number may not ...
3
votes
1answer
1k views

Is it worth incorporating, when working in Canada as a contractor for an employer in the US?

Assume a Canadian contractor is working remotely from Canada for a US based contracting company. Is it advisable to incorporate, in Canada, in this situation? Also, once incorporated in Canada, is it ...
5
votes
4answers
947 views

What's the difference between TaxAct and TurboTax?

I've always used TurboTax, but found an edition of TaxAct that will do state, federal plus schedule c for about 33 percent of the price of the Turbotax edition? Does TaxAct not do some important ...
7
votes
2answers
197 views

What are the ongoing administrative requirements associated with running a small business that is incorporated?

Throughout my career, I've done some development and consulting projects in addition to my full time job. I've always just reported the income on my personal income tax forms. Now that I am getting ...
3
votes
3answers
267 views

At what point does a hobby turn into a business?

Is it based on how much I earn? if so, can I re-invest all of the income back into the hobby and still call it a hobby?
4
votes
1answer
4k views

I'm self-employed with my own LLC. How should I pay myself, given my situation?

I do a ton of freelance web design and decided to setup a simple LLC so I could have a credit card to make business purchases with. From my limited understanding, I can choose to be taxed as an S-corp ...
3
votes
1answer
270 views

Do I need a new EIN since I am hiring employees for my LLC?

I have an LLC that I set up but at the time it was created, the business did not have any employees (this is for consulting work I am doing). So I now have an EIN for this LLC but during the IRS ...
3
votes
1answer
102 views

What book or source of information can help me build a business from tax money?

My wife and I are both employed. We are in the middle class family tax bracket, but we don't own a house thus making our tax very high. I want to start a business to work it after hours and divert ...
9
votes
5answers
480 views

Should I start my own company so I can claim against tax?

I live in the UK and I'm an employed web and mobile phone developer and very occasionally do some work on the side. I've been recently advised by a family member that I should look at starting my own ...
9
votes
4answers
191 views

Do I need a business credit card?

Do I need to have a business credit card for my own company or can I use my personal credit card and just make sure I keep the records. I don't have a lot of expenses so keeping the records is not a ...