Questions tagged [small-business]
Questions specific to small businesses, generally under 100 employees and revenues less than $1,000,000.
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When you sell a business. Is it a long-term or short-term capital gains tax?
Let's say I start my own small business selling hot dog stands on Jan 01, 2023, and sell it three months later for $50,000. Would my $50,000 be subject to long-term or short-term capital gains tax?
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Taxes: What is the correct way to file freelance income?
I've been living and working remotely as a freelance software developer in America, but for European clients. Each month I write them an invoice for my contract hours and they pay me (in EUR, if that ...
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How can I issue payments from my business under my business' name?
I have a small business checking account with a bank, and a Wise business account. Both of them send payments (wire transfers, ACH...) with their names appearing on the recipients' statement. I'd ...
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What counts as different sources of income?
I'm a freelance writer (in US), but I also do some freelance video editing, programming, and virtual assistance along the side. I'm wondering if each of this counts as a "separate source of ...
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US: how to prove business expenses?
I'm a freelance writer who works from home. My internet fees should count as business expense and be deducted from gross, but the question becomes how much? Since I also use internet for entertainment ...
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How to switch to Schedule C of 1040 from 1120-S [duplicate]
On Side I have a LLC that I use to file Taxes on Schedule C of 1040. One CPA suggested me t switch to S Corp by filling for 2553. After couple of years i realize that I am paying more to run the ...
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How to structure a company/entity that accepts money from friends/family to invest and gain interest/dividends/gains?
I have a few interested friends and family that are looking to invest money. They come with various backgrounds/experiences in investing but given a connection they are willing to try a different ...
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Introduction to UK Limited Company Taxes
Goal:
To determine the types of taxes (and how they're calculated) that a UK-incorporated limited company is liable to pay.
Details:
This post is based around an example of a limited company based in ...
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How is remaining inventory items in home business calculated in COGS on schedule C
My wife recently stopped doing her home business which is an MLM clothing sales. Though she cut ties with the company and ended her business in December 2022, she's still left over with a large ...
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Why would I (with good credit and financial history) be denied while applying for a business checking account?
I've applied for several accounts, and all of them were denied, most instantly. I have an 800+ credit score, a clean checking history, and so on. I do not have any business financial history - but ...
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How do I create, structure, and file taxes for a small business?
My friend and I (we’re high schoolers) want to create a tutoring business for elementary/middle schoolers. I figured it would be structure as a partnership but I have been hearing about LLPs. Will it ...
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Can I count personal 1099 income as LLC revenue?
I have about 78k in 1099 income that was made out to me personally. I also recently formed an LLC with the election to be taxed as an S-corp - can I report this 1099 income as revenue to the LLC, ...
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As an investor of a business, how do you prevent the founder from holding back growth? [closed]
If you are an investor who owns 30% of a business and the founder owns 70%, how do you prevent a situation where the founder decides to always take profits and not reinvest them to grow the business? ...
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How can I check progress on an EIN application?
How can I resolve my case when the IRS doesn't provide a mechanism for me to obtain updates?
I registered an LLC and would like an EIN to open bank accounts.
I filed an SS-4 in May.
The SS-4 was ...
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Personal contracting versus LLC
I am taking on a side project where I will be making a little under $100 US an hour for a few (5-10) hours a month. I do have a LLC already established in the same industry (fitness/teaching) in ...
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Can I use a friend's bank account while living abroad?
I've been living abroad for 2 years and work as an expat independent contractor. A friend is willing to open a bank account, on his name, exclusively for my use - so my client will send payments to ...
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Starting a second business as a Sole Proprietorship, S-Corp, or LLC with a DBA?
I'm planning on launching a business to provide voiceover professional services. In professional voiceover, your name is your calling card, so my first inclination would be to simply do everything as ...
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What percentage of companies could have a consistent lower "return on capital" to its owners/shareholders and a higher risk than the S&P 500?
What percentage of companies/startups in the US or any other country could have a consistent lower "return on capital" to its owners/shareholders and at the same time a higher risk than the ...
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Should I categorize a cash injection into my 2-owner LLC as an owner loan or owner investment?
I have an LLC, S Corp where I and my business partner share a 50/50 ownership. We ran out of cash, so I deposited $1,000 into the account to get us over the hump. The plan is to pull it back out once ...
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Do I apply VAT charges on my invoice?
I am a consultant and did some work for a company in Norway.
Until now I have worked with companies that are registered on VAT (in other European countries) and I am informed by my accountant to add 0%...
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How to track business mileage in GnuCash?
I have a small business which involves some driving to clients using my personal vehicle. I track both my individual auto expenses and my mileage in GNUCash but so far have only been using the ...
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can SEP contribution be made more than one time for same year
Can a small employer make contribution to SEP similar to 401K with each pay check/1099 or at end of the year for previous year. So for example for 2021 contributions, can one give 10% in January 2022, ...
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Is it more tax efficient to use a website that does the logistics, manufacturing and selling for you? [closed]
Is it more tax efficient to use a website that does the logistics, manufacturing and selling for you like Merch By Amazon, or is it more tax efficient to create your own store with Shopify, do your ...
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Can I deduct driving expenses when I am driving for Uber?
A person is driving for Uber. He gets in his car and turns on the Uber app. After some time, he gets a rider. He then drives to pick up the rider. After that, he gets another rider. He repeats this ...
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Would like to keep paying our parents after retiring from our small business
Several years ago me and my brothers bought the company that our dad and mom started. We agreed to pay them a monthly amount until we had bought out the company. At that time they both continued ...
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Are donations to OSS projects necessary business expenses for tax purposes?
I run a small business and use open source software (OSS). I'd like to give money to the OSS developers to motivate them to keep doing it. I don't get anything in return.
Can I claim such a payment as ...
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What type of company/business can be registered with one person?
In some countries, a company must at least has 2 board members to be registered. What about the US? What type of companies can be registered with only 1 person in the US?
EDIT: My interest is a S-Corp ...
user82352
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3
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Is money from the sale of an asset considered income?
Is money from the sale of an asset, like a pickup truck, considered income? For example, let's say I am a carpenter and I buy a new pickup truck for $40,000. I deduct $18,000 in depreciation for the ...
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Term For Business Entity Founded With The Sole Purpose Of Holding Non-traditional investment?
I've done some searching but have been unable to find info on what I'm specifically looking for. My guess is there's a specific term for this type of business that I don't know.
Suppose I want to ...
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What are the advantages of LLC over S-Corp?
I saw a video that mentioned that if you don't want to withdraw all your company's net profit and want to invest it again on the company, it's better to have a LLC over the S-corp. Is that true?
May ...
user109157
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What options are available if the IRS denies appeals for waiving missing form fee?
This question is a follow-up to
What happens if IRS does not receive 1120-S for an S-Corp?
In June 2019, IRS sends Mr. X a letter with a fine of $7,200 for the missing 3 forms (each form cost maximum $...
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How do I budget with cash surplus spending in mind? [closed]
I'm setting up a budget for my small business. We have been accumulating cash, but have not been budgeting up to this point, so are trying to get everything in order.
I've created a conservative ...
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Why can't my LLC get a credit card when the owner has credit history and a good credit score?
I've started an LLC (US-based) and have an EIN that I'm bootstrapping myself and self-funding. All my addresses and details are registered in the US. I'm the sole employee, but have zero revenue as it ...
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Goodwill and Amoritization when buying a small business [closed]
When buying certain small businesses goodwill is the largest intangible asset.
For an example company,
Purchase Price: 1,000,000
Tangible assets: 200,000
Goodwill: 800,000
If the company's value stays ...
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Bought a domain before starting a small business (SMLLC), is it considered a startup cost?
I bought a domain ($3,000) right before I started a business SMLLC (single-member LLC). At the time, I thought that the domain can be treated as "start-up" cost so I do not need to ...
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Why on PPP application lenders distinguish between sole proprietor, partnership, independent contractor or self-employed?
Lenders on PPP applications call these "Entity types" without further defining this term. However, best to my knowledge:
Sole proprietor is someone who owns 100% of business and files ...
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PPP 2.0: Can businesses that were not operational in 2019 use 01/01/2020-02/29/2020 period for average payroll cost calculations?
Official SBA PPP 1.0 FAQ had this answer:
Question: What time period should borrowers use to determine their number of employees and payroll costs to calculate their maximum loan
amounts?
Answer: In ...
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2
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1
answer
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Self-funded & fully-funded health insurance plans for small businesses
Imagine that a hypothetical small business in the U.S., MoneySavers, is setting up a health insurance plan that it will offer to its employees. I'm looking for clarification on any misunderstanding ...
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1
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Using capital gains to start a business?
Lets say I make 100k profit in selling some stocks. Can I use that 100k to start a Business without paying Capitol gains? The Business would be used to buy and sell properties. Maybe a bar.
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No more income. What are my options to keep my S-Corp from dissolving?
I classified my single member LLC as an S-Corporation to take advantage of the tax advantages for qualifying small businesses as an independent software contractor. This worked well while generating ...
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Can I exchange the shares of an index ETF for the assets of a small business?
I am interested in buying a small business for $150K. In order to finance the acquisition, I plan to use funds from my personal brokerage account (TD Ameritrade). I will sell $150K in stocks from the ...
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UK - Can I buy things for myself through my company?
this is a UK-based question.
I understand that there are certain purchases that you can make using the revenue of your limited liability company, and this is beneficial as you are using money that has ...
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Journals for credit with suppliers
How would I keep a record of payments with an insurance supplier (Zego if that helps) if they bill on the basis that the account gets topped up with credit, then they deduct from the credit on a pay ...
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I'm traveling and need the info on my future business card
I'm about to open a business account, but all providers seem to provide physical credit cards for their business account. At the moment I won't be able to physically present myself at the place of ...
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Can I claim/deduct my expenses for a part time recipe tester on my taxes?
I manage an app that generates income. It is a food recipe app and I would like to hire someone a few hours, once a week, for the next two months. I want them to test the recipes. In that two months ...
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LLC in Florida needed if already have a New Mexico LLC?
I'm a resident of Florida and need to a create a LLC for liability protection. My business will solely be an online business. I would like to form the LLC in New Mexico as they have no annual report ...
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Are Employer Taxes (medicare and social security taxes) eligible expense for PPP forgiveness purposes?
Let's assume sole proprietor with 1 employee received $10K in PPP loan. As per SBA at least 60% of PPP loan must be used for payroll expenses in the 24 week period. This means at least $6K.
My ...
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0
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How are certain Indian small businesses dealing with taxes?
When I am attempting to register a domain from a domain reseller, I don't see any tax component getting added by the reseller. However, Godaddy or HostGator adds 18% GST on top of the actual price of ...
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Can I have a small wage if I establish a non-profit organization/company in Greece?
In the future I plan to make a non-profit organization, so I can hire software engineers in order to contribute and develop libre software projects. The organization will either be in Greece or Cyprus....
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Is there any way to form an anonymous General Partnership?
Update: When I say anonymous, I don't necessarily mean from the IRS (although that would be ideal). I mean anonymous from the general public. I don't want anyone to be able to look up my real name and ...
