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Small Business

The QBI deduction basics and a year-end tax tip that might help you qualify

Limited Liability Company, LLC, Partnerships, Qualified Business Income Deducton (QBI), S Corporation, Small Business, Sole Proprietors, Tax, Tax Deduction, Tax Planning /

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 sole proprietorships, single-member limited liability companies (LLCs), partnerships, and S corporations, as well as […]

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Steer clear of the wash sale rule if you’re selling stock by year end

Investment, IRA, Roth IRA, Securities, Small Business, Stocks /

Are you thinking about selling stock shares at a loss to offset gains that you’ve realized during 2020? If so, it’s important not to run afoul of the “wash sale” rule. IRS may disallow the loss. Under this rule, if you sell stock or securities for a loss and buy substantially identical stock or securities

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The importance of S corporation basis and distribution elections

Business Deductions, Business Start Ups, C Corporation, S Corporation, Shareholder, Small Business, Strategic Business Planning, Tax, Tax Deduction, Tax Planning /

S corporations can provide tax advantages over C corporations in the right circumstances. This is true if you expect that the business will incur losses in its early years because shareholders in a C corporation generally get no tax benefit from such losses. Conversely, as an S corporation shareholder, you can deduct your percentage share

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Hit the target with your email marketing

Small Business, Social Media Marketing /

Online retail sales have been booming during the COVID-19 pandemic. This trend has been driven not only by the buying public’s increased inclination to minimize visits to brick-and-mortar stores, but also by the effectiveness of many retailers’ virtual marketing efforts. One such effort that can benefit most any type of business is email marketing. Although

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Do you want to withdraw cash from your closely held corporation at a low tax cost?

Closely Held Corporations, Corporations, Small Business, Tax, Tax Deduction, Tax Planning /

Owners of closely held corporations are often interested in easily withdrawing money from their businesses at the lowest possible tax cost. The simplest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient, since it’s taxable to you to the extent of your corporation’s “earnings and profits.” And it’s not deductible

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Now more than ever, carefully track payroll records

Employees, Federal Income Tax, Form W-4, Medicare Taxes, Paycheck Protection Program, Payroll & HR Functions, Payroll Service, Payroll Tax, Small Business, Social Security & Medicare (FICA) taxes /

The subject of payroll has been top-of-mind for business owners this year. The COVID-19 pandemic triggered economic changes that caused considerable fluctuations in the size of many companies’ workforces. Employees have been laid off, furloughed, and, in some cases, rehired. There has also been crisis relief for eligible businesses in the form of the Paycheck

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New business? It’s a good time to start a retirement plan

401K, Employee Benefits, Employees, Individual Income Tax, IRA, Retirement, Roth IRA, Simplified Employee Pension (SEP), Small Business, Tax, Tax Planning /

If you recently launched a business, you may want to set up a tax-favored retirement plan for yourself and your employees. There are several types of qualified plans that are eligible for these tax advantages: A current deduction from income to the employer for contributions to the plan, Tax-free buildup of the value of plan

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Inventory management is especially important this year

Inventory Management, Small Business /

As year-end draws near, many businesses will be not only be generating their fourth-quarter financial statements but also looking back on the entire year’s financials. And what a year it’s been. The COVID-19 pandemic and resulting economic fallout have likely affected your sales and expenses, and you’ve probably noticed the impact on both. However, don’t

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