Small Business

08 Jan Deliberate Tax Free Compounding is the Secret of the Golden Flower

Posted at 00:00h in Employee Business Expense, IRA, Retirement, Small Business, Social Security, Tax planning

I am getting to be an old man now and so profoundly thankful that the lessons of tax-free compounding were impressed upon me at an early age. It has made a huge difference in my financial well being and subsequent happiness. You too can use...

Read More

13 Aug IRS Proposes Elimination of Automatic Filing Extensions for W-2 Forms

Posted at 00:00h in Employment Tax, FICA, Payroll Tax Problems, Small Business, W-2

I tend to harbor deep resentment whenever the IRS proposes more restrictions on job creating taxpayers. After all WE are the backbone of the US economy and our government agencies absolutely must focus on mitigating obstacles for hard working entrepreneurs in their daily struggle to create new...

Read More

08 Jun Why to Revoke An S Election and How to Do It – Internal Revenue Code Section 1362(d); Reg § 1.1362­6(a)

Posted at 00:00h in Employment Tax, Entity Classification, Paying Taxes, Payroll Tax Problems, Penalty, Small Business, Social Security, Social Security Tax, Sole Proprietor, Start up costs, Sub-chapter S, Tax Abuse, Tax Guidance & Preparation, Tax Problems & Requests

Many entrepreneurs get caught up in selecting the "most appropriate business structure" - particularly people planning to conquer the moon right out of the gate. If this is you beware as business structure is a determination that is best driven out of operational efficacy. Why? Most all new...

Read More

18 May Defining Small Employer with Regards to Offering Health Insurance

Posted at 00:00h in Affordable Care Act, Business Expense, Corporation, Employee Business Expense, ObamaCare, SHOP, Small Business, Sub-chapter S, Tax Credit, Tax Deductible Expenses

Many business owners of all sizes have been posting to this blog lately with concerns about offering minimum essential health insurance coverage for their employees. It is indeed a complex topic full of both pitfalls and opportunities. When you drill down into the nuances of what it really...

Read More

06 Feb LLC Income is INDEED Subject to Self Employment Tax: IRS Chief Counsel Advice 201436049

Posted at 00:00h in Employment Tax, Entity Classification, Limited Partnership, LLC, Material Participation, Passive Activity, Payroll Tax Problems, Small Business, Social Security Tax, Taxable Income, Uncategorized

In 1997, the IRS issued proposed regulations governing when the distributive share of partnership income for Limited Liability Company (LLC) members was to be included in self-employment income. It basically advised that an LLC member would be treated as a limited partner — and thus...

Read More

28 Dec 2014 Depreciation Limits on Luxury Autos: IRS Rev Proc 2014-21

Posted at 00:00h in Amortization, Depreciation, Self Employ, Small Business, Tax Deductible Expenses, Tax Guidance & Preparation

According to 26 U.S. Code § 280F - Limitation on depreciation for luxury automobiles the first year's depreciation expense for a newly procured vehicle should be prorated over the tax year based on the in service date not to exceed the limitations spelled out in IRS...

Read More

11 Dec Take Care Closing Down An LLC – IRC 752 – Treatment of Certain Liabilities

Posted at 00:00h in Accumulated Adjustment Account, Basis, Cost Basis, Limited Partnership, LLC, Partnership, Small Business, Tax Deductible Expenses, Uncertain Tax Position

A taxpayer reading one of my blog posts from Ishpeming, Michigan was compelled to call me today. She was a member in a Limited Liability Company (LLC) who had ultimately resigned herself to abandoning her interest in the LLC. In advance of the call she faxed...

Read More

29 Oct What is the best Business Structure to form If Any?

Posted at 00:00h in Business Expense, Business Income, Business Structure, Capital Gain, Capital Loss, Employment Tax, Limited Partnership, LLC, Net Operating Loss, Partnership, Self Employ, Small Business, Sole Proprietor, Start up costs, Sub-chapter S, Tax Guidance & Preparation

What I love most about Colorado, more than the 300+ days of sun every year and the glorious rocky mountains, are the people.  For the most Coloradans are risk taking job creators, starting new businesses from scratch out of their garages and turning passions for...

Read More

30 Sep Worker Classification & the Colorado Department of Labor & Employment

Posted at 00:00h in Colorado Department of Labor & Employment, Employment Tax, FICA, Payroll Tax Problems, Small Business, Tax Guidance & Preparation, Tax Problems & Requests, Unemployment

Worker Classification & the Colorado Department of Labor & Employment This post is about my experiences as they pertain to the Colorado Employment Security Act of 2013.  First off let me start by saying that there are some really good hard working bureaucrats paid by our tax...

Read More

15 Aug What is an FTE? What is a Seasonal Employee?

Posted at 00:00h in Affordable Care Act, Business Expense, Employee Business Expense, FTE, Medical Expenses, Medicare, Small Business, Sub-chapter S, Tax Credit, Tax Deductible Expenses, Tax Guidance & Preparation

What is an FTE? What is a Seasonal Employee?...

Read More