Questions tagged [small-business]

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

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52 votes
4 answers
13k views

On paper I have 1 share in my company. How can I sell a smaller percentage of my company to another party?

To be specific, my wife and are equal partners in our limited company. On paper it says we have one share each. We now want to sell 10% of our company to a third party. How does that work in terms of ...
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  • 451
52 votes
6 answers
9k views

Determining fair price for profitable mobile app business

I have been developing iOS apps for a few years now. They do pretty well, and yesterday I was approached with an offer to buy one of them. The offer was for $40,000 dollars for an app that generates ...
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51 votes
2 answers
12k views

Can I hire my kid and start a Roth IRA for him?

I own an LLC, of which I am currently the sole member. It's my main source of income. I am wondering if there is a reason why I could not do the following: Hire my child as a part-time employee of ...
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  • 2,741
45 votes
10 answers
20k views

I won USD 50K! Now what should I do with it?

I won a sweepstakes and will be getting USD 50k...it is verified that it is legitimate although no taxes have been taken out so I will have to claim this income on my taxes next year, they will send a ...
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  • 460
39 votes
5 answers
12k views

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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38 votes
3 answers
12k views

How to prove that invoices are really unpaid?

When it comes to official business documentation (USA) between a company and a client who is either another company (B2B) or individual person (B2C), how can the company providing the invoices, prove ...
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  • 381
33 votes
4 answers
7k views

Should my husband's business pay my business?

My husband and I are each starting our own private enterprises--me as a web developer. I'm building a website for his company. Is it worth it for me to "charge" him? At the end of the day the money ...
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31 votes
4 answers
18k views

When should I start an LLC for my side work?

I am doing quite a bit of sidework this year and wondering at what point would it be a good idea to "start a business" and bill through that.
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22 votes
12 answers
7k views

Pay off Loan With Savings or Keep Emergency Fund

A year and a half ago I took out a Career Development Loan(£7000, 9.9% interest). Which is currently around £4900 now. I have been saving for no particular reason, and I now have over £5000 in savings ...
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  • 332
21 votes
11 answers
6k 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 ...
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  • 319
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 ...
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  • 9,316
20 votes
3 answers
16k views

What to ask for on a business partnership?

I am being asked to provide technical expertise on a technology entrepreneurship. They are offering me equity of the business, in exchange of my work/commitment. I know they will require a capital ...
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  • 5,815
18 votes
4 answers
24k views

Will depositing $10k+ checks each month raise red flags with the IRS?

I am a freelancer that runs a small design business (LLC) and I have one client in particular that I regularly do more than $10k per month worth of business with. Sometimes I'll deposit a check for $...
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  • 189
17 votes
1 answer
3k views

Will I owe any taxes if I can write off every cent?

Does anyone know if I will owe any taxes for my small business if I can write off every cent? My business is based in the United States. I started a small web design business this year and anticipate ...
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15 votes
5 answers
26k 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?
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14 votes
2 answers
2k views

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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14 votes
5 answers
42k 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 "...
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  • 9,974
14 votes
6 answers
18k views

Why use accounting software like Quickbooks instead of Excel spreadsheets?

Some friends and I are starting a small landscaping cooperative, and are thinking about how we will manage accounting. Places we've worked in the past have used Excel spreadsheets to manage all of ...
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  • 241
13 votes
2 answers
14k 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 ...
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  • 131
13 votes
5 answers
39k 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)? ...
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  • 129k
13 votes
3 answers
1k views

Can I withdraw from my Roth IRA retirement account to fund a startup?

I'm 24 years old and have $10k in my retirement accounts (Roth IRA) after about a year with a real job. I'm considering withdrawing the entire balance to support myself for a few months while I ...
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12 votes
4 answers
2k views

What's a Letter of Credit? Are funds held in my bank for the amount in question?

Can someone easily cash one? Is it used for business only, or is there an advantage to consumers using them as well?
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  • 8,653
11 votes
3 answers
10k views

Why do banks require small businesses to open a business bank account instead of a cheaper personal one?

I understand the need to separate personal finances and the business finances, be it sole-proprietorship or incorporation. I also understand that in the former it's optional, but in the latter it is ...
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  • 319
11 votes
5 answers
894 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 ...
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  • 213
11 votes
1 answer
1k views

Sole proprietorship or LLC?

At what point in the life of a small business would you choose to do a LLC over a sole proprietorship? What's the advantage, and what's the cost of doing an LLC?
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  • 7,806
10 votes
8 answers
7k views

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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  • 339
10 votes
5 answers
3k views

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 ...
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10 votes
3 answers
376 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 ...
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10 votes
2 answers
4k views

Can my US company buy my foreign company for $1 USD?

I'm a non-US resident and I'm the owner of a Delaware C-corp Inc. I also own a company (equivalent to LLC) in the EU. Although I could "sell" or transfer ownership of my EU company to my US company ...
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10 votes
3 answers
1k views

How high should I set my KickStarter funding goal in order to have $35,000 left over?

I'm creating a KickStarter to raise enough funds to take 3 months off from my full-time job and finish an iOS game that I've been working on for about 3 years now. Put simply, all I need is about $35,...
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10 votes
3 answers
7k views

Full-time work + running small side business: Best business structure for taxes?

Currently I have a full time job (IT industry) but from time to time I do a side project. Most of the times my clients agree to pay me cash as the amounts are not large. However, last year there ...
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10 votes
4 answers
321 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 ...
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  • 5,403
10 votes
1 answer
6k 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 ...
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  • 1,848
10 votes
4 answers
2k 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 ...
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10 votes
1 answer
1k 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 ...
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10 votes
2 answers
694 views

My Boss owes money but I am named on letter from debt collection agency (UK)

My employer has an outstanding debt with a company he aked me to speak with a couple of years ago. Now that company has my name listed as a "contact". He received a letter from a debt collection ...
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  • 101
10 votes
1 answer
3k 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 ...
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10 votes
4 answers
1k views

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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10 votes
1 answer
178 views

Can we amend last year's Schedule C to indicate reduced income due to a customer refund this year for a product we sold last year?

If a customer gets a refund this year for a product sold last year, can I amend last year's Schedule C to indicate the reduced income and get a refund for tax paid that year? We have a small business ...
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  • 101
9 votes
3 answers
4k views

Bank claims I'm personally liable for small business fees; despite leaving the company?

I opened a small business (partnership) a while ago and was a signer on a company account. I later left that company, with the other partner being responsible for whathaveyou, but was apparently never ...
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9 votes
1 answer
2k views

Are real estate taxes deductible if I use home for business?

I use home for business - work as a contractor from home, on my home computer, but there is no area for exclusive use - desk and computers are also used for personal purposes. So I do not qualify for ...
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9 votes
3 answers
4k views

Employer wants a key man insurance policy on me, should I agree?

Friend is working for a small company as main person in charge of operations. The president is asking them to take out a key man life insurance policy on them. The benefit would pay out to the company....
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9 votes
3 answers
576 views

Help: Being charged interest on a loan for which I received no statements telling me of this debt for the past 15 years. Surprise!

Is this legal? This was a private loan within a small business. I was under the assumption that the bill was paid in full 15 years ago. My only drawback is that I never got them to sign to verify the ...
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9 votes
8 answers
226 views

Finding a good small business CPA?

Maybe I've just had bad luck, but the four CPAs I've met so far with have been morons. The first one I found on superpages and he couldn't help me set a structure for my LLC. Didn't know what ...
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  • 1,200
9 votes
1 answer
1k views

Am I required by law to have cash register for my small business (California)?

We have a Point of Sales terminal to handle all credit card transactions. The credit card processor company sends us 1099K form that we use for tax purposes. This works fine for our small beauty salon....
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  • 637
9 votes
2 answers
169 views

Joint Account for Common Earnings

I've started a tutoring group with two of my peers; the three of us are minors in the state of Ohio. We charge a modest fee and generate approximately $2,000 in revenue per month. We plan on charging ...
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8 votes
3 answers
2k views

What kind of taxes might I incur if I sell off intellectual property from my small software business?

For a little over five years (I started in fall of 2008) I've been developing an app for the iPhone/iPad, and it's been for sale in the App Store for all of that time. I'm in a position now where I ...
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8 votes
2 answers
2k views

Hiring Foreign Contractors - Is This Tax Deductible?

I have a small start-up business in the US and I'm going through freelance sites like freelancer.com to get some work done. The appeal of this is that the rates for foreign contractors is often less ...
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  • 243
8 votes
2 answers
3k views

Am I required to file taxes on an LLC that made no money?

I live in NY and created my LLC in November 2017. I didn't have any revenue for the two months of activity. Am I required to file taxes for 2017 on that LLC? I can't imagine that they would want to ...
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  • 771
8 votes
1 answer
3k views

What are the benefits and downsides to an LLC vs. Sole Proprietorship vs. Individiual?

As a followup to my previous question, what benefits are there for an LLC vs. a Sole Proprietorship? What are advantages and disadvantages to both and also vs. just being paid as a person?
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