Below you will find a list of our most frequently asked questions. If you have a question that you do not see answered here, or one that is answered that you would like expanded on, please contact us today at 856-629-2111.
Below you will find a list of our most frequently asked questions. If you have a question that you do not see answered here, or one that is answered that you would like expanded on, please contact us today at 856-629-2111.
Unless your business is a separate legal entity or operates under a “doing business as†name, you don’t have to open a separate business bank account. Despite this, separating your personal and business funds is a smart move, even when it isn’t legally required. Separating business and personal funds can help you file your taxes correctly, keep you organized and help you to avoid overspending. You may accidentally use business funds to make personal purchases if you combine funds. Opening a business bank account is a straight-forward, easy and can save you time and energy down the line.
Selecting a business structure is one of the most pivotal decisions you will make when starting your enterprise. The business entity chosen impacts taxes, liability, your control, and how to pay yourself from your business. You can structure your business as a sole proprietorship, partnership, limited liability company (LLC), corporation, or S Corp. Some business structures are more complicated to manage than others. You may have significant filing and reporting requirements, depending on how you structure your company. Before selecting a business entity, lay out your business goals and speak with a professional advisor to discuss the pros and cons of each.
Some small businesses can receive a refund from the IRS depending on their entity election. For example, many businesses choose pass-through taxation, where the business earnings are passed to the individual owner’s income tax return. In that case, the owner is required to pay estimated taxes to the IRS and would likely not receive a refund.
There are lots of ways a small business can reduce their tax liability each year. Some common options include choosing the correct entity for your business, being smart about tax elections, and keeping an eye on your Adjusted Gross Income. Working with an accountant or financial advisor is the best bet to ensure small businesses reduce their tax burden and maximize their deductions.
A CPA has demonstrated professional competence by passing a rigorous examination and meeting high standards of education. In addition, they must meet strict continuing education requirements, undergo peer review, and adhere to a stringent set of ethical standards.
It is imperative that you contact a CPA. You will need to discuss the organization of your company for tax purposes as well as numerous other issues relating to operations, not the least of which will be setting your target pricing and gross profit margins. Don’t wait until the year-end to have this discussion. You could be making decisions without the proper advice, and that could wind up hurting you financially or legally.
Contact us today at for more information on your submission options, turnaround times, and more information on our tax preparation services.
To claim your child as your dependent, your child must meet either the qualifying child test or the qualifying relative test: To meet the qualifying child test, your child must be younger than you and either younger than 19 years old or be a “student” younger than 24 years old as of the end of the calendar year. There’s no age limit if your child is “permanently and totally disabled” or meets the qualifying relative test. In addition to meeting the qualifying child or qualifying relative test, you can claim that person as a dependent only if these three tests are met: Dependent taxpayer test Citizen or resident test, and Joint return test