Helping You Choose the Right Structure for Your Small BusinessPosted on August 14th, 2019
The freedom and independence of owning your own business come with many responsibilities and tough decisions. You need to develop efficient systems that save you time and money and make wise choices to maximize your growth.
Straightaway, you are also required to choose a business structure that best suits your company’s needs. You should take serious consideration of how differently each structure manages liabilities, taxation, and record-keeping. You can avoid costly mistakes with the advice of a business professional.
Here are just a few of the most common business entities to consider:
Sole Proprietorship: The owner of the business maintains complete control and is liable for all the financial obligations. With this structure, no state tax filing is required.
Partnership: Two or more people agree to share in the profits or losses of the business. The business does not bear the tax burden of profits or the benefits of losses as they are “passed through” to the partners to report on their individual income tax returns. The disadvantage is that each person is liable for the financial obligations of the business.
Limited Liability Companies: Also known as LLCs, these are a hybrid entity bringing together some of the best features of partnerships and corporations. You get liability protection while avoiding double taxation. There are no limitations on shareholders and earnings and losses are passed through to owners and included in their tax returns.
S Corporation: There is no double taxation, and there is a limit of 100 shareholders, all of whom must be US citizens. Only common stocks can be issued, and shareholders can vote on major corporate decisions.
C Corporation: This is the most complex and expensive way to incorporate, but this structure protects your assets from liability. The corporation retains some of its profits tax-free and has both common and preferred stock, which helps it raise money.
Sound Advice in Business Structure Formation
You want your business to start on the right foot, and selecting the most beneficial entity is key to success. Give Bruce A. Miller a call to find the advice you need for business formation. We can help you maximize your profits and avoid costly mistakes.
How QuickBooks Can Benefit Your Small BusinessPosted on April 11th, 2019
You can manage every aspect of your business with QuickBooks® software. Choosing features of the program that best suit the unique needs of your business personalizes its application and effectiveness. QuickBooks keeps track of everything from income, expenses, and invoices to bills, taxes, and payroll. Business owners may choose to manage their records themselves or hire an outsourced bookkeeper to handle it for them with greater efficiency.
Take a look at the many advantages QuickBooks provides:
Manage Cash Flow. The software categorizes both invoices and accounts receivable by customer. An updated report is readily available to give you details on the status of your income and outstanding payments.
Keep track of Bills and Expenses. QuickBooks connects with your bank and credit card accounts, so all your expenses can be downloaded and organized. You can also record transactions yourself directly. Furthermore, reports on accounts payable are generated quickly and easily, so you know when bills are due.
Generate Insightful Reports. Reports are updated in real time and can give you crucial information. For example, profit and loss reports summarize your income minus expenses, so you know your bottom line net income or loss. Account balance reports show your assets, liabilities, and equity on a balance sheet, and cash flow statements record activities that affect the operating and investing of cash flow.
Automate Payroll Services. QuickBooks allows you to integrate payroll with financial statements, so your records are always updated. Federal and state payroll taxes are calculated for you, and payroll tax forms are filled in automatically.
Simplify Your Taxes. Either you or your tax professional can access your QuickBooks data to find all the information you need come tax season. Receipts and bank statements will already be organized, streamlining the process and reducing the risk of errors.
Save Time and Money with QuickBooks Services
If you are searching for a way to streamline and simplify the operational duties of your business, give Bruce A. Miller, EA a call. He has over 15 years of experience as a QuickBooks® Pro Advisor and can help your business reach higher levels of success. Located in Cordova, Mid-South Professional Services can save you time and money. Call today!
What to Do When You Have IRS DebtPosted on December 12th, 2018
When it comes to paying back taxes, the best approach is to be forthright and upfront with the IRS. The IRS wants to avoid conflict as much as you do, and they are not out to get you personally. It is estimated that 21 percent of Americans or roughly 30 million people owed the IRS money in 2018. The IRS wants to help you resolve your debt, and they have even adopted a “Taxpayers Bill of Rights.” Here are a few important suggestions to help you know your obligations and your rights:
File your taxes on time. Even if you cannot pay all your taxes, file anyways. When you ignore the deadline, you may be penalized 5 percent on the unpaid amount and charged 25 percent on your balance. This will make your tax debt a lot worse. If possible, pay the amount owed or as much of it as possible to avoid or minimize potential interest and penalties. Once charged with fees, it is very difficult to convince the IRS to remove them.
Negotiate a repayment plan. This is especially helpful if you need more than 120 days to resolve your balance and you owe less than $50,000. An installment plan allows you to make small payments toward the overall debt; however, you are still charged penalties and interest, and even one late or missed payment can terminate your eligibility. For those owing up to $100,000, payment plans for up to seven years are available that avoids accruing interest, keeps you eligible for future loans, and allows you to retain your future tax refunds.
Innocent Spouse Relief unburdens you of your spouse or ex-spouse’s tax problems, so you are not subject to the taxes owed by them. The IRS carefully reviews your records to determine if you had knowledge of your spouse’s lack of transparency and that you did not benefit from their failure to report income or falsify deductions.
Offer in Compromise allows you to pay less than the full amount owed with either a lump sum or an installment plan within 24 months. This removes liens, but for five years you are required to forfeit any tax refunds, and you must file your taxes on-time.
Delay payment by requesting an extension to pay by documenting a true hardship. If you cannot afford even basic living expenses, you may be eligible. This does not remove your debt; it simply means you cannot pay at this time. Penalties and interest will continue to accrue.
Communication is the most important thing to remember when dealing with the IRS. So long as they know you are making efforts to be compliant, they work with you to avoid unnecessary fees.
We Help Ease Your Tax Burden
Bruce A. Hill at Mid-South Professional Services provides personalized service that makes certain you know the best options available to you when managing debt owed to the IRS. Located in Cordova, our friendly and professional team of experts look forward to easing your mind and relieving your tax burden. Call today!