sole proprietors Archives

The nanny tax: What household employers need to know

Nov 14, 2024 | Individuals

In 2024, if you pay a household worker cash wages of $2,700 or more, you must withhold and pay nanny tax. What will the threshold be in 2025?

Hiring your child to work at your business this summer

Jul 4, 2024 | Small Business

Hiring your child at your business this summer? It can be a tax-smart idea. Here are the benefits.

Year-end tax tip to help your business qualify for the QBI deduction

Dec 28, 2020 | Small Business

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...

Good records are the key to tax deductions under IRS audit

Jul 6, 2020 | Individuals, Small Business

If you operate a small business, or you’re starting a new one, you probably know you need to keep records of your income and expenses. In particular, you should carefully record your expenses in order to claim the full amount of the tax deductions to which you’re...

Does your small business have an emergency succession plan?

Jun 22, 2020 | Small Business

For business owners, succession planning is ideally a long-term project. You want to begin laying out a smooth ownership transition, and perhaps grooming a successor, years in advance. And you shouldn’t officially hand over the reins until many minute details have...

Have a side gig? Make sure you understand your tax obligations

Mar 2, 2020 | Individuals

The number of people engaged in the “gig” or sharing economy has grown in recent years, according to a 2019 IRS report. And there are tax consequences for the people who perform these jobs, such as providing car rides, renting spare bedrooms, delivering food, walking...

Which entity is best for your new or existing small business?

Jul 15, 2019 | Small Business

The Tax Cuts and Jobs Act (TCJA) has changed the landscape for business taxpayers. That’s because the law introduced a flat 21% federal income tax rate for C corporations. Under prior law, profitable C corporations paid up to 35%. The TCJA also cut individual income...

When are LLC members subject to self-employment tax?

Mar 25, 2019 | Small Business

Limited liability company (LLC) members commonly claim that their distributive shares of LLC income — after deducting compensation for services in the form of guaranteed payments — aren’t subject to self-employment (SE) tax. But the IRS has been cracking down on LLC...

There’s still time for to set up a SEP retirement plan for last year

Mar 18, 2019 | Small Business

If you own a business and don’t have a tax-advantaged retirement plan, it’s not too late to establish one and reduce your 2018 tax bill. A Simplified Employee Pension (SEP) can still be set up for 2018, and you can make contributions to it that you can deduct on your...

A refresher on major tax law changes for small business owners

Jan 21, 2019 | Small Business

The dawning of 2019 means the 2018 income tax filing season will soon be upon us. After year end, it’s generally too late to take action to reduce 2018 taxes. Small business owners may, therefore, want to shift their focus to assessing whether they’ll likely owe taxes...

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