110 votes
Accepted

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

EDITED after OP added more details. no taxes have been taken out yet. 24% will probably be withheld, taking you down to 38K. The organization that ran the sweepstakes must withhold 24%. It's the ...
RonJohn's user avatar
  • 50.5k
106 votes

How to prove that invoices are really unpaid?

You can't prove a negative. Therefore, you cannot prove that an invoice is unpaid; it is assumed to be unpaid on claiming so, and the payer has to prove that he paid. That should be easy for him, if ...
Aganju's user avatar
  • 37.5k
77 votes
Accepted

Determining fair price for profitable mobile app business

We can't know. The question you need to ask yourself is: "Is this app going to make me more than $40,000?". This is unfortunately a question which is impossible for us to answer. You say the app ...
Philipp's user avatar
  • 23.7k
76 votes

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

Simple: Do a stock split. Each 1 Ordinary share now = 100 Ordinary shares (or 100,000 or whatever you choose). Then sell 20 (or 20,000) of them to your third party. (Stock splits are fairly routine ...
marktristan's user avatar
  • 3,710
57 votes

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

Forget the Roth for one moment. Having a $5500 deduction for your LLC would be great. Parents hire their kids all the time. To do real work at a reasonable wage. Do you have work that's appropriate ...
JTP - Apologise to Monica's user avatar
48 votes

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

There are 2 basic ways to have someone buy partial ownership of your company: They can buy shares that you already own. This means they will give cash to you personally, and that if you sold the ...
Grade 'Eh' Bacon's user avatar
47 votes

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

You make $50/hr and are in debt? This is a serious problem! The $50K is a distraction. This is what I'd do: Pay off any high-interest debts (say 7% and above) up to ~$40k (saving some for taxes, ...
NPSF3000's user avatar
  • 1,588
46 votes

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 first say that I am not an accountant. I recommend that you do meet with an accountant; he or she will be able to tell you the best way to handle this. That having been said, I'm going to ...
Ben Miller's user avatar
  • 115k
45 votes
Accepted

Pay off Loan With Savings or Keep Emergency Fund

What nobody else mentioned yet is what you could do from now on. If you consider your current savings enough of an emergency fund, you can look into regularly overpaying your loan from now on. How ...
penelope's user avatar
  • 505
37 votes

Determining fair price for profitable mobile app business

It is a decent offer. When one evaluates a business proposal the typical discount rate is 20%. That is a business is only worth investing in if it returns 20% on the initial investment. So the ...
Pete B.'s user avatar
  • 75.7k
35 votes

Pay off Loan With Savings or Keep Emergency Fund

It sounds like you have some very real income risk, so I would not drain my savings completely just to get rid of the loan. I don't know how long £5000 would last you if you lost your job, or how long ...
D Stanley's user avatar
  • 129k
34 votes

UK - Can I buy things for myself through my company?

No. Purchases for your company are intended to be for your company to perform its function: merchandise that the company sells, equipment that the company needs to function... Purchases for companies ...
SJuan76's user avatar
  • 2,455
34 votes
Accepted

Is money from the sale of an asset considered income?

Yes. What you describe is similar to those who buy a rental property, take depreciation, and then sell it. (With no replacement 1030 exchange, etc). As a consumer, I buy a car, and sell it for a lower ...
JTP - Apologise to Monica's user avatar
33 votes
Accepted

Should my husband's business pay my business?

It depends on the finances involved, but particularly if you're not billing anything right now and may have no revenue this year, it's probably a good idea to bill his company. This is in part ...
Joe's user avatar
  • 35.7k
28 votes

Is there any way to form an anonymous General Partnership?

The answer is simple in my opinion: Don't form a General Partnership with someone you barely know on the internet. The General Partnership is something that makes it easier to start a small business ...
Nobody's user avatar
  • 814
27 votes

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?

I'd form an LLC, with the partner (or not). (I used Legal Zoom to do this, a few years ago. Today it costs $79. (There may be some minor state fees, no capital requirements in my state.)) Get a ...
John's user avatar
  • 371
26 votes

How to separate interest paid on a credit card between personal and business expenses?

There is no rule of thumb that can be used to separate the amount paid in interest. The reason why so much interest was paid was because when you don't pay it off each month the new charges ...
mhoran_psprep's user avatar
24 votes

How can I make $250,000.00 through investing within 5 years?

How do I achieve my savings goals? This question is the essence of personal finance. Whether the goal is to save for a down-payment on a house, retirement, or just an expensive toy (like a sports or ...
NL - Apologize to Monica's user avatar
24 votes
Accepted

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?

What you have there is a General Partnership. You already have a General Partnership. You didn't need to do anything to create it, it just arose when you agreed to share revenue. In this situation ...
Harper - Reinstate Monica's user avatar
21 votes

Why can't my LLC get a credit card when the owner has credit history and a good credit score?

This question is impossible to answer without knowing some details that you probably should not share over the internet. As you are discovering credit score is not the only means utilized for credit ...
Pete B.'s user avatar
  • 75.7k
20 votes

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

Not sure if I've read properly, but 50k is not all that much, even moreso as existing debt is involved (was it maybe 500k, and I misread?). Insofar, the mere idea "Should I buy property or start a ...
Damon's user avatar
  • 407
18 votes

Is there any way to form an anonymous General Partnership?

Both of us want to remain anonymous and don't want to even tell each other each other's names. Is there any way to do this anonymously? Yeah. Fire up those Wyoming LLCs. An LLC can be a general ...
Harper - Reinstate Monica's user avatar
18 votes

Can I claim/deduct my expenses for a part time recipe tester on my taxes?

You have income that you claim (that's good!). You have legitimate expenses to create that income. One of those expenses will be this $400. The simple answer is that it's a one time expense. If it ...
JTP - Apologise to Monica's user avatar
17 votes
Accepted

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

What did you sign when the account was opened? What did you sign when you left the company, to transfer those responsibilities? Unless the bank has a record of someone else being responsible, they are ...
keshlam's user avatar
  • 41.4k
17 votes

Should my husband's business pay my business?

Is it worth it for me to "charge" him? I can think of two reasons why you might want to charge your husband: Building up your portfolio. Regardless of whether or not you charge him, you can include ...
Nosrac's user avatar
  • 6,839
17 votes
Accepted

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

Real estate taxes for your home are deductible as an itemized deduction on Schedule A whether or not you own a business. The phrase “wasn’t used for business” that you see on Schedule A really means ...
Ben Miller's user avatar
  • 115k
16 votes

Does U.S. tax code call for small business owners to count business purchases as personal income?

I am going to keep things very simple and explain the common-sense reason why the accountant is right: Also, my sister in law owns a small restaurant, where they claim their accountant informed ...
David Schwartz's user avatar
16 votes

Maintaining "Woman Owned Business" while taking on investor

To qualify as a woman owned business, a woman or group of women must own shares worth 51% of the business. If your investor was a woman, the entire 5% could come from her share of the company without ...
NL - Apologize to Monica's user avatar
16 votes

US: how to prove business expenses?

My internet fees should count as business expense and be deducted from gross Says who? Since I also use internet for entertainment etc, how can I prove myself when I say 50% of the internet fee ...
littleadv's user avatar
  • 161k
15 votes

Why can't my LLC get a credit card when the owner has credit history and a good credit score?

You could be hurting yourself by submitting so many credit card applications, which can be a red flag in many systems regardless of your personal credit score. I realize you say that according to ...
RiverNet's user avatar
  • 5,370

Only top scored, non community-wiki answers of a minimum length are eligible