S-Corp Shareholder Compensation
Many small businesses are organized as S-Corporations (or S-Corps). There are tax benefits for being organized as an S-Corp as opposed to being organized as a sole proprietor. If you are a sole-proprietor or single member of an LLC, you can elect to be taxed as an...
Separating personal and business funds
Most business owners understand the importance of being a corporation, whether it's an LLC, S-Corp, or C-Corp. Forming a corporation makes your business a separate legal entity - separate from you the individual owner or individual partner or individual shareholder. ...
Covid Related Tax Credits: Employee Retention Tax Credit
Sometimes, reading all the details of tax programs can be overwhelming. Here's a brief summary of the Employee Retention Tax Credit. It is a refundable credit against some employment taxes with a limit of 50% of qualified wages. This applies to wages paid between...
Not paying payroll taxes can result in criminal charges
In the July 2015 issue of The General Ledger, a newsletter published by the American Institute of Professional Bookkeepers, they warn that the IRS is now pursuing criminal charges against businesses that fail to pay payroll taxes. This is a new, harder approach than...
Fixed assets versus inventory. What’s the difference and why it matters.
To recap our previous discussion of assets, assets are defined as things with current or future economic value. Fixed assets are items your business owns that you actually use in your business. Examples of fixed assets are: Office equipment like copiers and fax...