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Questions tagged [small-business]

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

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Can I claim the equipment cost as expenditure of my (small) business?

I am using freetaxUSA, but I am not seeing the result that I want, or maybe I am misunderstanding something. I want to claim the cost of my GoPro as my business expense for my YouTube channel. I also ...
TheTechGuy's user avatar
1 vote
0 answers
96 views

How to clarify to the irs that I hired contractors on upwork so I don't need to file 1099s?

I definitely spent more than $600 hiring contractors for my small business, but they were all hired on Upwork and Fiverr, freelancing platforms. Because I never paid my freelancers directly, I do not ...
No Name's user avatar
  • 331
1 vote
1 answer
280 views

Forming an LLC to reduce personal income

I'm working as a contractor for a couple people though I haven't formally formed my own business yet. Is it possible to reduce my personal income tax while having the money go to the business? Ex: I ...
maxical's user avatar
  • 111
0 votes
1 answer
230 views

Is it better to get a resale certificate or register an LLC in CA?

I would like to sell my 3D printed items on Amazon, Etsy, eBay, Shopify, etc. I recently discovered that I can avoid paying taxes when purchasing raw materials or business equipment by obtaining a ...
best_of_man's user avatar
-8 votes
2 answers
285 views

How to make a high amount of money on your computer fast and legally? [closed]

Hello Money StackExchange Community, I hope this message finds you all well. I'm here to seek your advice and insights. I've seen how incredibly savvy many of you are when it comes to innovative ...
Bob's user avatar
  • 1
1 vote
2 answers
584 views

Homeowner's insurance and alleged business misconduct

In the US homeowner's insurance usually also covers liability for unintentional acts, such as knocking over a vase in someone else's home. Suppose someone is accused of an act that would be a business ...
Gerard Ashton's user avatar
0 votes
0 answers
24 views

Filing a UK Company Tax return for 22/23- is it possible to bring back a trading loss from 23/24?

Whilst filing my UK company tax return for the financial year covering 22/23 in the section 'Trading losses', under 'Bring back a loss from a later period' is states the following: You can only bring ...
james's user avatar
  • 101
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0 answers
34 views

Why is the UK Corporation tax payment deadline before the company tax return filing deadline?

I've returned to contracting (as a software engineer) after 8 years of full time employment and am now working through my own LTD company. I mistakenly thought - as is the case with self assessment - ...
james's user avatar
  • 101
0 votes
1 answer
65 views

Outsourcing projects: is there a threshold on how much I can deduct from taxes (IRS)?

Suppose that: I have a $10000 project. I subcontract the entire project to a subcontractor and pays that person $9999. This means my net gain (or profit) is $1. If I submit that info to the IRS when ...
No Name's user avatar
  • 331
2 votes
1 answer
67 views

Contribution from personal checking account to Solo 401k as Single-Member LLC

I have Single-Member LLC (file as a sole proprietor). Should I make contributions (Employee deferrals, Employee after-tax contributions, Employer contributions) to a solo 401k from my business ...
illuminato's user avatar
0 votes
0 answers
206 views

Setting up a limited company and appointing spouse as director for tax purposes

I am a programmer registered as a sole trader in UK, and I have around 40k GBP of annual income from my self employment. Apart from that, I also have a permanent job working for a UK employer, where ...
Andre Borges's user avatar
1 vote
2 answers
113 views

Fees associated with credit card payments for small businesses

I once went to a deli in Boston, and when I attempted to pay with a credit card, they said that the process will cost them almost 10% of the entire sale. This was curious to me since I had always ...
James McDonald's user avatar
0 votes
1 answer
84 views

Minimizing tax liability in business purchase w/ personal loan from other partner

I'm purchasing an existing business with a business partner. They're in a better position than I am regarding liquid assets. I've got most of my assets in positions where I'd be paying high short term ...
user avatar
-1 votes
1 answer
316 views

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? ...
AlanSTACK's user avatar
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0 votes
1 answer
95 views

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 ...
Donuts's user avatar
  • 178
1 vote
0 answers
110 views

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 ...
Ken - Enough about Monica's user avatar
5 votes
0 answers
139 views

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 ...
No Name's user avatar
  • 331
6 votes
3 answers
2k views

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 ...
No Name's user avatar
  • 331
1 vote
2 answers
288 views

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 ...
perennial_noob's user avatar
0 votes
1 answer
79 views

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 ...
p.luck's user avatar
  • 103
1 vote
0 answers
45 views

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 ...
Frank's user avatar
  • 173
0 votes
1 answer
140 views

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 ...
Ken - Enough about Monica's user avatar
0 votes
1 answer
103 views

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 ...
Salban Nithilaselvan's user avatar
0 votes
1 answer
930 views

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, ...
number41's user avatar
  • 153
0 votes
1 answer
119 views

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? ...
Rax Weber's user avatar
  • 109
1 vote
0 answers
61 views

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 ...
DazWilkin's user avatar
  • 173
2 votes
3 answers
93 views

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 ...
JohnP's user avatar
  • 221
0 votes
1 answer
279 views

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 ...
user5656's user avatar
1 vote
0 answers
47 views

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 ...
Joel Graff's user avatar
-1 votes
1 answer
98 views

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 ...
user96769's user avatar
2 votes
1 answer
324 views

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 ...
bentedder's user avatar
  • 121
1 vote
0 answers
47 views

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%...
Mpizos Dimitris's user avatar
3 votes
1 answer
491 views

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 ...
OrganicLawnDIY's user avatar
3 votes
0 answers
46 views

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, ...
riya's user avatar
  • 1,245
-4 votes
1 answer
86 views

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 ...
Sayaman's user avatar
  • 211
7 votes
1 answer
764 views

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 ...
Bob's user avatar
  • 1,673
0 votes
2 answers
346 views

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 ...
Krik's user avatar
  • 117
8 votes
1 answer
386 views

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 ...
minou's user avatar
  • 7,536
0 votes
1 answer
79 views

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 ...
user avatar
21 votes
3 answers
6k views

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 ...
Five Bagger's user avatar
  • 9,785
0 votes
0 answers
53 views

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 ...
newBieDev's user avatar
  • 101
2 votes
1 answer
148 views

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 ...
user avatar
-2 votes
2 answers
201 views

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 $...
2q.'s user avatar
  • 105
0 votes
1 answer
80 views

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 ...
JamieHoward's user avatar
21 votes
11 answers
7k views

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 ...
Grant's user avatar
  • 319
0 votes
1 answer
90 views

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 ...
johnbumble's user avatar
2 votes
2 answers
501 views

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 ...
dogpatch101's user avatar
1 vote
1 answer
84 views

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 ...
user4910112's user avatar
2 votes
2 answers
86 views

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 ...
user4910112's user avatar
2 votes
1 answer
164 views

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 ...
ninja star's user avatar

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