S Corporation Salary Considerations – Paying Yourself

S Corporation Reasonable Compensation - Shareholder Salary Guide

As an S Corporation shareholder, you are considered both a shareholder and an employee. This creates a few nuances that are unique to S Corporations. This is especially true when it comes to S Corporation salaries. Paying yourself can be very simple if you know what you’re doing. It’s important to make sure you have […]

When does my business start paying taxes?

When does my business start paying taxes?

The Short Answer   “When does my business start paying taxes?” is a question I hear a lot. But the short answer is that your business probably won’t start paying federal income tax anytime soon.  Wait, what!?! Well, there’s a reason for this, and it’s because most businesses are considered pass-through, or flow-through, entities.   […]

Self-Employed Beginner’s Tax Guide

Self Employed Beginner's Tax Guide

Deciding to go it alone and become self-employed can be a rewarding experience, but it can also be very overwhelming, especially when dealing with taxes. “Where do I start?” is usually the first question people ask on their self-employed journey. That’s where we’re going to begin with this Self-Employed Beginner’s Tax Guide.   Employee vs. […]

Types of Payroll Taxes

Type of Payroll Taxes

Are you struggling with handling the different types of payroll taxes? Do you want more information so you can breathe easier? Well, hiring your first employee means you become responsible for many different types of payroll taxes. (Payroll taxes can also be known as employer taxes or employment taxes.) Meeting all of these requirements can […]

What tax return does an LLC file?

What tax return does an LLC file?

The tax return that an LLC has to file all depends on the LLC in question. Some LLCs are set up differently, and that organization structure dictates how the federal government expects you to file your tax return.   Single-Member LLC   If you are a single-member LLC, then your LLC will have only one […]

Single-Member LLC Tax Considerations

Single Member LLC Taxes

Dealing with taxes as a single-member LLC is very different than that of a multi-member LLC. Single-member LLC taxes are paid as if the business is a sole proprietorship, and thus, the business is a disregarded entity for tax purposes. All that really means is that your business return is filed on Schedule C of […]

Rundown of S Corporation Taxes

S Corporation Tax Guide

Paying S Corporation taxes can be a bit complicated since you’re both an employee and a shareholder. Your requirements are really the same as any other business owner though. Here are some best practices when dealing with S Corporation taxes.   Shareholder vs Employee   As an employee of an S Corp, your taxes are […]

Avoiding the Hobby Loss Rules

Hobby Loss Rules - Are you a hobby or a business?

So you had a great idea, decided to take a risk and embarked upon the adventure of starting a business. From your perspective, you’re a business. From your customer’s perspective, you’re a business. However, from the IRS’ perspective, that determination remains to be seen. Here’s why… The IRS has a set of rules called the […]