The QBI deduction basics and a year-end tax tip that might help you qualify If you own a business, you may wonder if you’re eligible to take the qualified business income (QBI) deduction. Sometimes this is referred to as the pass-through deduction or the Section 199A deduction. The QBI deduction: Is available to owners of…
When are LLC members subject to self-emp...
Limited liability company (LLC) members commonly claim that their distributive shares of LLC income — after deducting compensation for services in the form of guaranteed payments — aren’t subject to self-employment (SE) tax. But the IRS has been cracking down on LLC members it claims have underreported SE income, with some success in court. SE…
A refresher on major tax law changes for...
The dawning of 2019 means the 2018 income tax filing season will soon be upon us. After year end, it’s generally too late to take action to reduce 2018 taxes. Business owners may, therefore, want to shift their focus to assessing whether they’ll likely owe taxes or get a refund when they file their returns…
Top 30 Things Start-ups & Small Business
You are forming, or have formed, a company and have selected your entity type; Now – where are you doing business? What state will be your home state? Which other states will you need to get authority to do business in? If your home state is Delaware, you will benefit from the advantageous legal protections…
Top 30 Things Start-ups & Small Business
Welcome to our new blog series, “The Top 30 Things Start-ups & Small Businesses Need to Know.” We will begin with topic #1: “Entity Selection.” Entity selection is one of the most important decisions you will make for your business. There are many varying levels of formation from sole proprietor to corporation. Which one should…
New Tax Bill – What you need to know
How does the new tax bill impact you and your business? While there are many details included in the new bill that will drive how you plan for your 2018 taxes, we will attempt to highlight some of the major changes: The bill does not affect 2017 taxes. According to the IRS, updated withholding guidance…
New Business Formation – Which Entity is
What do you have planned for 2018? Getting ready to start your own business, or just thinking about it? One of the most critical decisions you will make is choosing the type of entity for your business formation. When you choose to form as a C Corporation, S Corporation, Partnership or LLC, you set the…
Tax Planning Season!
Tax planning season is upon us. Have you reviewed your income and expenses this year to see if there are ways to minimize taxes? Even though uncertainty still exists regarding possible changes to the tax code, there are some considerations that could be beneficial no matter the end result of the legislation. All small businesses…
Important update for all Partnerships: N...
The IRS is changing the way they audit partnerships and assess underpayment of tax beginning in 2018. Underpayment of tax and the assessment of penalty and interest will be assessed at the partnership level versus the individual partner level and the tax will be assessed at the highest partner tax rate. One Partner will need…