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Partnerships

Run a business with your spouse? You may encounter unique tax issues

Federal Income Tax, Partnerships, S Corporation, Self Employment Tax, Small Business, Small Business Owners, Sole Proprietors, Tax Savings, Unincorporated Small Business /

Do you and your spouse together operate a profitable unincorporated small business? If so, you face some challenging tax issues. The partnership issue An unincorporated business with your spouse is classified as a partnership for federal income tax purposes, unless you can avoid that treatment. Otherwise, you must file an annual partnership return using Form 1065. […]

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Lower your self-employment tax bill by switching to an S corporation

Federal Employment Tax, Federal Taxes, Limited Liability Company, Partnerships, S Corporation, Self Employment Tax, Small Business, Small Business Owners, Small Business Tax Tips, Sole Proprietors, Taxes 2025 /

If you own an unincorporated small business, you may be frustrated with high self-employment (SE) tax bills. One way to lower your SE tax liability is to convert your business to an S corporation. SE tax basics Sole proprietorship income, as well as partnership income that flows through to partners (except certain limited partners), is subject

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A tax guide to choosing the right business entity

Business Entities, Employees, Limited Liability Company, Partnerships, Payroll Tax, S Corporation, Small Business, Small Business Owners, Small Business Tax Tips, Sole Proprietors /

One of the most critical decisions entrepreneurs make when starting or restructuring a business is choosing the right entity type. This choice directly impacts how the business is taxed, the level of administrative complexity and regulatory compliance obligations. While legal liability considerations also matter, we will focus on tax implications. For liability advice, consult a

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The QBI deduction and what’s new in the One, Big, Beautiful Bill Act

Federal Taxes, One, Big, Beautiful Bill Act, Partnerships, Past-Through Entities, Qualified Business Income Deducton (QBI), Real Estate, S Corporation, Small Business, Small Business Owners, Sole Proprietors, Tax Tips on Real Estate Purchases, Taxes 2025, Taxes and Tips /

The qualified business income (QBI) deduction, which became effective in 2018, is a significant tax benefit for many business owners. It allows eligible taxpayers to deduct up to 20% of QBI, not to exceed 20% of taxable income. It can also be claimed for up to 20% of income from qualified real estate investment trust

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Do you have an excess business loss?

Federal Income Tax, LLC, Net Operating Loss (NOL), Partnerships, Past-Through Entities, S Corporations, Small Business, Small Business Owners /

If an individual taxpayer has substantial business losses, unfavorable federal income tax rules can potentially come into play. Here’s what you need to know as you assess your 2024 tax situation. Disallowance rule The tax rules can get complicated if your business or rental activity throws off a tax loss — and many do during

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Navigating tax complexities: Craft partnership agreements and LLC operating agreements with precision

(LTCG) Net Long-Term Capital Gain, Depreciation, LLC, LLC Operating Agreements and Tax Issues, Partnership Agreements And Tax Issues, Partnerships, Pass Through Taxation, Small Business, Small Business Owners /

Partnerships are often used for business and investment activities. So are multi-member LLCs that are treated as partnerships for tax purposes. A major reason is that these entities offer federal income tax advantages, the most important of which is pass-through taxation. They also must follow some special and sometimes complicated federal income tax rules. Governing

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The possible tax landscape for businesses in the future

Corporate Federal Income Tax Rate, Corporations, Partnerships, Past-Through Entities, Qualified Business Income Deducton (QBI), S Corporation, Small Business, Small Business Owners, Sole Proprietors, Tax Cuts and Job Acts (TCJA) /

Get ready: The upcoming presidential and congressional elections may significantly alter the tax landscape for businesses in the United States. The reason has to do with a tax law that’s scheduled to expire in about 17 months and how politicians in Washington would like to handle it. How we got here The Tax Cuts and

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Closing a business involves a number of tax responsibilities

C Corporation, Federal Income Tax, Partnerships, S Corporation, Small Business, Small Business Owners, Sole Proprietors /

While many facets of the economy have improved this year, the rising cost of living and other economic factors have caused many businesses to close their doors. If this is your situation, we can help you, including taking care of various tax responsibilities. To start with, a business must file a final federal income tax

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Growing your business with a new partner: Here are some tax considerations

Accounts Receivable, Depreciation, Ordinary Income Tax, Partnerships, Small Business, Small Business Owners, Small Business Tips /

There are several financial and legal implications when adding a new partner to a partnership. Here’s an example to illustrate: You and your partners are planning to admit a new partner. The new partner will acquire a one-third interest in the partnership by making a cash contribution to the business. Assume that your basis in

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When partners pay expenses related to the business

Business Deductions, Business Expenses, Business Meals and Entertainment, Limited Liability Company, LLC, Partnerships, Small Business, Small Business Owners /

It’s not unusual for a partner to incur expenses related to the partnership’s business. This is especially likely to occur in service partnerships such as an architecture or law firm. For example, partners in service partnerships may incur entertainment expenses in developing new client relationships. They may also incur expenses for: transportation to get to

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