Tax Solutions

/Tax Solutions

Get Ready to Sell your Business

2019-09-21T14:28:08+00:00September 21st, 2019|Categories: Business Solutions, Ready to go into Business, Tax Solutions|

Selling your Business Requires Planning If you want to sell your business, you need to understand what is needed to get it ready for sale.  The goal of a sale is to receive the most value (money) from the perspective buyer and therefore, the seller needs to make sure there is VALUE to purchase.  Value is more than net income or cash flow.  Value is the FUTURE.  The buyer is buying the FUTURE.  Listed below are the readiness issues in preparation to sell a business.  Steady and predictable growth is the plan.  The goal is to increase the transferability of the [...]

Misclassification of an employee can cost small business a lot of money

2019-08-03T13:24:47+00:00August 2nd, 2019|Categories: Business Solutions, Business Startup, Tax Solutions|

Beware of Misclassification of an Employee Treating employees as non-employees You will be liable for social security and Medicare taxes and withheld income tax if you do not deduct and withhold them because you treat an employee as a nonemployee, including yourself if you are a corporate officer, and you may be liable for a  trust fund recovery penalty. Refer to Publication 15, Circular E, Employer’s Tax Guide for details about the trust fund recovery penalty or Independent Contractor for more information on employee classification.

How to Become an S Corporation

2019-08-03T13:04:23+00:00August 1st, 2019|Categories: Business Solutions, Business Startup, Ready to go into Business, Tax Solutions|

Sub-Chapter S Corporation First the organization must register with the Department of Revenue of the Secretary of the State or other agency identified within their state to file their Articles of Incorporation. Once they file these documents and receive verification back from the state, the business then files the IRS Form 2553 to elect the S Corporation status. S corporations are corporations that elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at [...]

Self Financing Can Go Bad

2019-08-03T13:06:28+00:00July 14th, 2019|Categories: Business Solutions, Business Startup, Finance, Ready to go into Business, Tax Solutions|

Seller-Financed Real Estate raises serious questions It is not uncommon for sellers to self-finance the real estate, both personal and business, that they want to sell. In many cases this may be the only way an owner can sell their property as many buyers cannot qualify for financing or the real estate will not satisfy the requirements of a lender. Also, buyers may not have the required funds for a down payment. So, how can the owner sell the property? They can carry the loan and self-finance the transaction. This means that the seller takes back a note (becomes the creditor) from the buyer to cover [...]

How to save tax dollars by hiring family members

2019-08-03T13:10:28+00:00February 13th, 2019|Categories: Business Startup, Finance, Ready to go into Business, Tax Solutions|

How to save tax dollars by hiring family members Child employed by parents Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of the child. Refer to the “Covered services of a child” section below.  Payments for the services of a child under age 21 who works for his or her parent in a trade or business are not subject [...]

Thinking About Saving Money.. Plan Now Before the End of the Year

2019-08-03T13:13:05+00:00September 4th, 2018|Categories: Business Solutions, Finance, Tax Solutions|

THINKING ABOUT SAVING MONEY…. START PLANNING FOR YOUR TAXES NOW  Neil Pastor Shnider, RPh, MBA, CPA  The 2004 year is rapidly coming to an end.  It’s not too early to start thinking about some tax tips to help reduce your tax bill to Uncle Sam.  The best way to save money on taxes is through planning, education and having good advisors.  Hear are some thoughts. Do you want to be a hero with your favorite charity?  If so, contribute appreciated stock to the charity and you will not have to pay the capital gain tax as if you sold the stock, [...]

How to Deal with Employment Taxes

2019-08-03T13:09:01+00:00August 14th, 2018|Categories: Business Startup, Ready to go into Business, Tax Solutions|

The employer MUST obtain an Federal EIN if they are going to have employees (See how to obtain an EIN). Federal Income Tax, Social Security and Medicare Taxes You generally must withhold federal income tax from your employees' wages. You withhold part of Social Security and Medicare taxes from your employees' wages and you pay a matching amount yourself. To figure how much to withhold from each wage payment, use the employee's Form W-4 and the methods described in Publication 15, Employer's Tax Guide and Publication 15-A, Employer's Supplemental Tax Guide (PDF). The Internal Revenue Service recently released instructions to help [...]

Real Property and Lease Terms can cause Tax Issues

2019-08-03T13:09:28+00:00August 14th, 2018|Categories: Finance, Tax Solutions|

How leases can affect Cash Flow Rental property lease terms can cost tax dollars Folks renting new office space or commercial stores need to understand the tax implications of the terms of the contract or lease. In many cases the landlord will pay a broker to aid in finding a new tenant. Also, some landlords will provide the tenant with incentives to sign leases such as, free rent for a period, improvements (called leasehold improvements), lower rent in early years and increasing over time, or actually give tenants cash to do their own improvements. All of these wonderful incentives have serious tax implications, from [...]

How to Start a Business in the U.S.

2019-08-03T13:09:53+00:00August 13th, 2018|Categories: Business Solutions, Business Startup, Ready to go into Business, Tax Solutions|

The federal, state and local governments have requirements and the regulations of doing business in the U.S. Obtaining the information and necessary rules is important to prevent the risk of penalties, interest and to reduce the risk of failure due to noncompliance. To start a business one only has to start doing business Under these terms the person would operate under their own social security number File a form schedule C (business tax return form) This schedule is then attached to the individual Federal Form 1040 The person will be responsible to pay what is called self-employment tax (SE) on the [...]