Small Business

If you are a small-business owner, your financial situation is more complex than the average person. And with that complexity comes additional opportunity. Your potential to create wealth is much higher, and your potential to destroy wealth is also higher. Having a partner who understands your complexities and your opportunities can impact your long-term success. And the best way to know your partner is to get an understanding of how they think. Check out our thought leadership below to get an inside look at how we think.

Staying out of the “Danger Zone” for the new small business deduction

The Tax Cuts and Jobs Act introduced a 20% deduction for small business owners. You can read our overview of this deduction in our last quarterly article. The gist of this new deduction is it will allow small-business owners to deduct 20% of their business income from their taxable income on their personal return. While this new deduction …

What is the best business structure for you?

When you operate a business, it is very important how you decide to initially structure that business. While a sole proprietorship is the easiest business to start and operate, not only will you miss out on tax strategies to lower what you pay the government, but you could find yourself personally responsible for the debts …

Are you protecting yourself from your corporate income?

Individuals with self-employment income should consider the potential benefits of structuring their business as a corporation. That is because a corporation can provide asset protection and potential tax benefits that are not available to the self-employed individual who files a Schedule C with their tax return. While there are potential tax savings with a corporate …

Putting your self-employment income away for retirement

If you are self-employed or own a small business you have the potential to put up to $56,000 per year towards your retirement by setting up a solo 401(k) ($62,000 per year if you are over 50).  Of that $56,000 you can put $19,000 into a Roth 401(k) where all of your distributions will be …

Avoid taxes on reimbursed employee expenses

If your business has employees then you likely have to reimburse them for out-of-pocket expenses they incur periodically. Reminder: If your business is a S or a C Corporation then you are considered an employee of the corporation, and are subject to the same reimbursement policies as any other employee. When accounted for properly, employee expense reimbursements …

Avoid the headaches and penalties associated with 1099 reporting

When a small business hires an employee, there are a number of expenses that are incurred in addition to the hourly wage. This could include the employer-provided benefits, office space, along with the technology and other tools required to do the job. The employer will also have to make the required payments and contributions on …

Deducting the business use of your vehicle

Standard Mileage Rate vs Actual Expenses There are two primary methods for deducting the cost of using a vehicle for business purposes: The standard mileage rate method and the actual costs method. Standard Mileage With the standard mileage rate you can deduct a specific dollar amount for each business mile you drive during the year …

How to handle vacation and business travel expenses

Taking a vacation can be expensive, so naturally the idea of deducting your vacation expenses on your tax return is an appealing idea. However, before you get carried away planning a lavish vacation with the hopes of writing off the entire cost, make sure to familiarize yourself with the requirements to qualify your expenses as …

The new deduction for pass-through businesses

The Tax Cuts and Jobs Act signed into law by President Trump at the end of last year included numerous changes to both individual and corporate taxes. One of the most notable changes was a new 20% deduction for pass-through businesses. This new deduction was created to ensure that pass-through entities were not penalized relative …

Unlocking the home-office deduction

Small-business owners should not miss the benefit of a home office deduction out of fear of a tax audit. Going to an office is no longer a requirement of conducting business in the age of the internet, cell phones, Skype and GoTo meetings. This means an increasing number of small-business owners are working from home, …