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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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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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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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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With which state/s must the payer file Form 1099-MISC?
I'm the president of a C corporation that's incorporated in Delaware.
The C corp is physically located in Connecticut (where I live and work). My cofounder lives & works in Colorado. So, we have ...
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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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Does a musician under an LLC have to file a foreign qualification for shows in other states?
Does a musical band or similar service under an LLC have to file for a foreign qualification in every state they play a show in/employ their service?
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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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Every month I make money from Patreon. I want to split my income with a partner. How do I avoid paying taxes on 100% of the income?
Let me start off by saying I have no idea what I'm doing here. The context is, I am making a game, and every month I make $400 or so from Patreon (people are my patrons, and they are paying me because ...
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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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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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3
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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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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 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 ...
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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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Few questions regarding Business Physical Address and Registered Agent Address for an LLC
(UNITED STATES) I'm forming a single member LLC and operating it from home. Somewhere on the net said that I should not use my personal home address as a business address because if something goes ...
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Can I write off time I spent working on my business?
So, I'm a freelance web programmer by trade, which means that my time really is money. I, occasionally, work on side projects of my own and forgo the possibility of earning direct income for that time....
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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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Is it worth working at home to earn money? Can I earn more money working at home?
I just started using an online money-making site... My question would be
Is it worth working at home to earn money?
Can I earn more money working at home?
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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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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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LLC with $100K Profit - How to Reduce Taxable Income via Spending and Investments?
I'm a US citizen with a US-based single-member LLC operating in the internet space that will have $100K of profit / taxable income this year. I'm looking for ways to creatively (and legally) spend/...
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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 ...
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Do US banks accept out-of-state applications for checking accounts?
Let's assume I walk in a local branch of a US bank with a presence in many federal states (for example, the Wells Fargo branch in Richmond/California).
Will they be able/willing to open a Wells ...
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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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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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How to separate interest paid on a credit card between personal and business expenses?
My wife has a home business selling clothes. She purchases all her inventory with a credit card but she also uses the card for personal expenses.
I understand that on the IRS Schedule C, we can write ...
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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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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 ...
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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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1
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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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2
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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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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 ...
2
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1
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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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