Tag Archives: file taxes

Free Tax Help from 1(800)Accountant!

Posted on by

That April 17th tax deadline is just four weeks away! Most small business owners know how important it is to get their taxes finished early, but we want to make sure the small businesses we’ve helped create aren’t simply just sending in the necessary forms and hoping for the best.

We want you to know how to maximize every single deduction, decrease any chance of an IRS audit, and keep as much of your hard earned money as possible. With that in mind, we’ve teamed up with 1800Accountant.com to give everyone reading our blog and using our services a free business tax consultation. There are no obligations to stick with 1800Accountant if you do not want to, and you won’t regret setting up a consultation with their team of licensed CPA and accountants to help make sure you’ve followed a sound tax strategy.

If you’re interested, simply click here or on their logo above to access the webpage where you can sign up for your appointment with 1800Accountant.com. As we said before, it’s completely free, there are no obligations and it is a great way to get some professional advice regarding your small business’s tax obligations. If you’d like, you can also call them at 1-800-822-6868; just be sure to mention MyCorp!

Don’t miss this opportunity for free tax help, and remember to sign up as soon as possible to make sure you get an appointment slot that will fit your schedule.

Share!!!

Simpsonian Wisdom: Taxes

Posted on by

This is not the first time we’ve decided to impart advice to our lovely readers based on the wisdom of Matt Groening and the Simpsons Team. Sure they entertain, but they have a message.

A message we typically dredge up from the depths of the episode and then spell out for you underneath a video clip.

Sadly for little Otto, there will be no Metallica concert this April 15th. I'm Kent Brockman.

MyCorp is clicking into tax season with the rest of the business world, so we only thought it fair to bring the lovable misfits from Springfield back to see what they have to say on the subject. You’ll be hard pressed to find anyone who enjoys doing their taxes, except maybe for Ned Flanders, but hopefully a bit of humor will take the bite out of the process.

Or maybe it will just give you an excuse to procrastinate. That’s almost as good.

Be Prepared, like Homer!

Homer very rarely finds himself prepared for any of life’s little challenges, but we see quite a bit of maturity in the lovable head of the Simspons family. Sure, he is doing his taxes on a toilet and maybe toilet paper isn’t the best medium on which to draft your returns. But he’s saved the returns from year’s past! And he is consulting them to ensure consistency!

What a guy that Homer Simpson. As long as he remembers he has to file taxes every year, he is prepared. Now the question falls upon you, dear reader.

Are you as prepared as Homer Simpson? Hopefully you are! But if you aren’t, now is a terrific time to start sorting through that box of old receipts and getting everything in order.

What the heck are you even paying?

The finger thing – it means taxes!

The citizens of Springfield have never proven themselves to be the most educated group of people, at least politically. All you have to do is sing a song and you can sell them Monorail, so it is no surprise this little debate devolved fairly quickly.

Now you don’t want to be like them, do you? Unsure what they are paying for, going through the motions and yelling at politicians. Acting out your frustration by driving up to the IRS and booing.

The general public is woefully uneducated when it comes to taxes. Either they stop by their accountant sometime in February to let them deal with the looming April deadline, or they frantically try to figure out what forms they have to fill out and whether or not the pencils they bought for their home office count as a business deduction.

Make a point to do a bit of that old book learnin’ and try to demystify the tax season. Even if you have a magnificent accountant and you never think twice to look over what they filled out in those little boxes, it would probably do everyone good if we stopped treating taxes like theoretical physics.

Taxes will follow you wherever you go

Sadly, we don’t have a video for this one, so you will have to use your best Kennedy impersonation and a little bit of imagination.

When some foolhardy Hollywood producers decide to film Radioactive Man in Springfield, Quimby makes sure that the town gets their fair share of the production budget. And then some.
Director: [covering his eyes] We’re shutting down production.
Assistant: Yeah, well, we only have $1000 left anyway.
Quimby: Uh, there’s a $1000 leaving town tax.

Uncle Sam is waiting at every restaurant, shop, and place of business with his hand out. Occasionally the state government locks him out in the cold, but typically local politicians are all lining up for their cut of spending dollars.

Some of the larger cities are now forcing local restaurants to charge ‘meal taxes’ to diners in an attempt to fatten up their coffers. After all, tourists have to eat somewhere and who better to benefit from humanity’s need to feed than city politicians?!

If you decide to take your tax return and buy a vacation, try enjoy as much of it as possible by researching the tax laws of your destination of choice. Cities like Virginia Beach or Chicago are going to hit you where it hurts when you go out for dinner, and states like New York and Louisiana depend more on sales tax than on state tax for funding.

So, while the last thing you may want to think about after tax season is tax, we want to make sure you aren’t taking your return from Uncle Sam and handing it to someone like Diamond Joe Quimby.

And now that you’re done wasting time in Springfield, go do your taxes!

Share!!!

1099 Health Care Act: Information and Implications

Posted on by

Small businesses face a unique set of challenges in the current economy.

The Senate voted to repeal the unpopular 1099 tax reporting requirement of the Affordable Health Care Act Tuesday, April 5th. This is the first piece of legislation that officially repeals part of President Obama’s widely-debated health-care reform movement.

Small business owners have expressed their frustration at the provision, which would require them beginning in 2012 to report to the IRS all payments of more than $600 on 1099 forms—work that many small companies just don’t have the time or manpower to do. According to the Washington Post, The bill would have generated an additional $22 billion in tax payments over the next ten years. In addition, the major provisions of the Health Care Act include:

1. Tax Credits for small business
2. Help for Seniors with the cost of Drugs in the Doughnut Hole
3. Elimination of Pre-existing conditions exclusions for children
4. A High Risk pool for anyone turned down due to Pre-Existing Conditions
5. Re-Insurance for early retirees (55 to 64)
6. Prohibition on Rescission of insurance policies if you get really sick
7. No More Lifetime Limits on insurance policies
8. Unmarried Children can stay on their parent plan (up to 26th birthday)

Despite the Health Care Act, there are numerous tax implications for employee’s and independent contractors. For small businesses seeking to make sense of the new legislation, regardless of possible appeals, the classification of their employees is paramount. Specifically, what makes someone an employee and not just an independent contractor? The answer is often less than simple. Many business owners fail to make the distinction, thus opening them up to potential lawsuits and tax complications.

The best way to avoid penalties is to know the law. Employee classification holds enormous potential for lawsuits, mainly because most employers really don’t understand the employee distinctions. The IRS published a great deal of information regarding this classification. The information can be found HERE.

Who is considered an independent contractor? The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax. Who is considered an employee? Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed.

Only time will dictate the future changes and appeals to the Health Care Act. Small business owners should consider all of their employees and classify them into the correct category in order to avoid potential lawsuits and tax complications.

Share!!!

Last Minute Tax Tips

Posted on by

If you’re a procrastinator like me, then you’re just starting to prepare for the upcoming tax due date. As it turns out, you’re not alone. Many firms responsible for sending out tax information to the taxpayers don’t even deliver the information until February or March, making it very difficult for those taxpayers to get their tax returns done on time. In fact, over 40% of Americans file after the beginning of April. If you fall into this category, don’t be discouraged and give up on your tax returns! There is still plenty of time to get it all done! Here are some useful tips to getting your tax return filed properly in the next two weeks.

File Online. One of the best moves during this tax season is for you to file online. A great (and surprising!) thing about filing online is that there have not been very many computer problems, and the IRS is only working to make it better by improving the process. Over two-thirds of people filed online last year, and that number will only be increasing. The updated and improved website will help guarantee few problems. However, it is always advisable to not wait to file online until the night before taxes are due as websites and the internet in general can be very unpredictable when too many people are using them.

Use a Tax Preparer. If you’re having a problem figuring out your taxes, it may be time to bring in a professional. There are a variety of ways to get your taxes done right though, even if you’re having problems figuring out the labyrinth of rules and regulations that is the tax code. A certified public accountant (“CPA”) can be hired to file your taxes, or a specialized tax preparer can do the same thing. Since this is the busiest time for these professions, the earlier you get your information in, the better. Another option is a place like H&R Block. H&R Block will help you through the tax process and explain any aspects that are confusing or unclear. H&R Block also offers representation in the event of an audit. For a more do-it-yourself option that offers guidance and major assistance, TurboTax and H&R Block Home are software you can use at home to calculate your taxes. The program will aid you in finding applicable deductions, credits, and exemptions for your taxes. Finally, there are numerous free e-filing options on the IRS website that supply interactive forms and calculators. There are many options for help in preparing your taxes, from someone to take over the process for you to calculators that help you figure out final numbers after you’ve done all the work yourself. Pick the system that works best for you and your life and get a move on!

Apply For a Tax Deadline Extension. Last but not least, if you feel that you cannot get your taxes completed and submitted on time, file Form 4868 as soon as possible. This will extend your tax deadline by six months, allowing you to complete your taxes correctly. You can file this form online as well, so it is a simple way to avoid running into problems with the IRS. Don’t let this be an excuse to wait though! An important point to note, this form does not extend the time to pay taxes and you must make a payment of your estimated taxes by the regular due date. Failure to do this may result in interest or penalties.

Regardless of how you get your taxes done or whether you file for an extension, the most important thing is to actually file your taxes. The IRS has estimated that it has over $1 million in unclaimed refunds, some of which could be yours! By filing a tax return, you are saving yourself a lot of time and hassle down the road and protecting yourself from the ire of the IRS.

Learn more about other small business solutions HERE!

Share!!!

Financing Made Simple

Posted on by

Financing a start up is daunting for many entrepreneurs. While hunting for cash, many find themselves sucked into flashy gimmicks promising “Free Money!” and “Fast Cash Now!” from websites and hiring consultants. Unfortunately, most of these promises are empty, leaving many small business owners searching for cash.

As difficult as it may seem, small business funding is available. For qualifying businesses, there really are opportunities to land free money from state, county and city governments, as well as private foundations and corporations.

Technology startups traditionally have the best chance of getting grant funding, often through the federal government’s Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs. These programs are lucrative, awarding more than $2 billion each year, but both require a tight match with exacting requirements.

Finding grant money for non-tech businesses is a little tougher. The first step: Figure out if you qualify for any special small business certifications. Some of these special certifications include women or veteran owned businesses. Federal and state governments sometimes give priority for grants to these types of business owners.

Utilize the internet to connect with your local government. Check their websites to find the economic development agency or equivalent in your area. These agencies often offer government sponsored grants in an effort to attract new businesses. Grants are also offered in order to encourage business owners to make their business economically friendly. Unfortunately, in the current economic state, government funding is difficult to secure. However, patients and perseverance can pay off.
Another way to generate cash flow is to find partners or investors. Finding a few partners and/or investors that share your interests and you get along with can be the key to successful financing. Not only do partners and investors give money, finding a couple of partners or investors can make you money in two other ways. First, they involve themselves in the business and have a vested interest in the business doing well. They may bring other types of experience to the business and this is helpful for getting your start-up going in the best possible direction. The second way partners or investors help make the company money is that many other financing entities (including banks, grants, trade associations, and venture capitalists) feel more comfortable giving money to a business that has partners and investors. Getting involved with trade associations that apply to you, attending conferences that invite people who share your interests or expertise, and subscribing to industry journals are three great ways to finding compatible partners and/or investors.

Thankfully, the economy is improving. Credit is coming back to midsize and larger companies faster than small businesses. That’s because small businesses are riskier. Small businesses should benefit from general economic conditions improving and, as that happens, lenders should feel comfortable taking on more risk and making more small-business loans.

Learn more about financing your small business HERE!

Share!!!

Common Tax Deductions Part 2!

Posted on by

In case the first five tax deductions weren’t enough (and let’s face it, you can never have too many tax deductions!), here are five more deductions that can save you a lot of money come tax time.

6. Professional Fees and Classes Deductions. You may have already known that you can deduct certain office equipment, your home office supplies, and health insurance, but did you know that you can also deduct many of the other costs of having a job? Any professional fees that you pay to continue in your career are deductible on your tax return, as well as much of the costs of attending classes, seminars, and training sessions. Subscriptions to professional journals, newspapers, and books are also included as tax deductions. Finally, don’t forget any membership fees you pay to trade organizations, professional groups, or chambers of commerce! All of these things will earn you quite a large deduction on your tax return as long as you keep track of what you spend and save your receipts.

7. Charitable Non-Cash Contributions. Charitable contributions are the ultimate win-win situation. Giving to charity is good for the world and good for your wallet because the charity gets your money and you get your money back on a tax return. If you don’t have the money to make a donation this year, you can always charge the donation. Tax deductions are usually taken when the purchase is made, not when the charge is paid off so it will still apply for this year. Taking the deduction on a monetary contribution though isn’t too difficult, but remember, you can also take a deduction on almost anything donated to charity. Things like old clothes, used books, furniture that no longer fits the motif of your home, almost anything. The only qualification for the deduction is that for items like clothes and household goods, the items need to be in good or better shape. In the case of an audit, you must have the written receipt to get the deduction so be sure you get a receipt for all your donations before you leave.

8. Energy Savings Home Improvement Credit. If over the last year you built a new home, remodeled your current home, or replaced anything within your home, check out the IRS’s list of home improvement credits that are available to you. One main credit offered is for putting in new energy saving appliances, windows, doors, roofs, or basically anything that is identified as energy saving. The energy saving home improvement credit is particularly helpful because it allows for a dollar-for-dollar reduction in tax, although it does have a maximum limit of $1500. Still, if you spend less than that on the improvements, the credit cuts down the amount you’ll owe in April by more than the usual tax credit or deduction can.

9. Investment and Tax Expenses. One of the most easily forgotten tax deductions is for the money spent on investments and tax preparation. Drafted your will this year? Money spent on tax preparation when planning out your estate counts as a tax preparation fee and is deductible. In general, things like fees for planning out your taxes by a lawyer and/or an accountant qualify as tax preparation fees and are deductible, as well as the usual tax costs you have. Almost anything spent on investments counts too as a deduction in this category. Fees paid to your broker and IRA, subscriptions to investment magazines, long distance phone calls to your broker and/or investment advisors, even mileage to go see them all qualify as deductible investment expenses. The only restriction for this deduction is that the total of all these expenses must be greater than 2% of your adjusted gross income before the deduction can be used.

10. Retirement Tax Credit. This credit actually has two great benefits. First, any contributions in to your retirement account aren’t taxed as of now so it’s a great idea to get a jumpstart in building your retirement account while this lasts. Second, you get a credit on the first $2,000 you invest, resulting in a reduction on your taxes. Contributions to retirement accounts aren’t the only things that qualify here either. IRAs and Roth IRAs, Employee Pension plans, and 401k’s all qualify for the deduction when a contribution is made.

As the April 15th deadline creeps ever near, remember it’s never too early to start organizing your taxes! Tax preparation can be difficult, even for the seasoned tax filer, but using this list to guide you through some common deductions can help you start this year off right!

Let MyCorporation’s Partner CPAdirectory help you find a CPA today! Check it out HERE.

Share!!!

Love Your Business this Valentines Day!

Posted on by

As Valentine’s Day approaches, let MyCorporation help you give your business the love and attention it deserves. Let Mycorp help you love your business! On February 14th, MyCorp is offering a FREE corporation or LLC from 7am to 7pm in honor of “Love Your Business Day.” In addition, MyCorporation also offers all the products your business needs – free Quickbooks, business cards and a domain name!

On February 14th, love your business by incorporating or forming an LLC to save on taxes and protect your personal assets. As a sole proprietor, your liability for business debt is unlimited. Personal assets such as your home, personal bank accounts, and other valued assets may be at risk. What does this mean? It means that if your business experiences severe financial difficulties, creditors can take away your personal property such as your home, retirement savings, or any other asset you or your spouse own.

In our increasingly litigious society, it is becoming ever more important to limit your exposure and protect yourself from liability. Incorporating your business draws a firm line between your personal and business assets, helping protect your personal assets from risks or debts associated with running your business.

Incorporation is also a great way to save money on taxes! If you are operating as a sole proprietor, you will be required to pay self-employment tax on your profit, currently at 15.3%. If you incorporate your business, only the salary you pay yourself is subject to self-employment tax. Depending on your situation, you may be able to save as much as 50% on your tax bill!

Incorporating also decreases the likelihood of a tax audit. Sole proprietors tend to be more likely to file incorrect returns (many are self-prepared), and tend to underreport revenue or over report deductions. For these reasons, the IRS has audited a much higher percentage of sole proprietor tax filings than corporate filings in recent years. In tax year 2006, a Schedule C filer stood a 1 in 32 chance of being audited. For nonbusiness filers, the odds were around 1 in 124. Let MyCorporation help you lessen the chance of a tax audit!

This year, make Valentine’s Day a special day – not only for your loved ones, but also for your business. Let MyCorporation help you love your business. Make sure to take advantage of our FREE LLC or Corporation offer on February 14th! Lean more HERE!

Share!!!

Maintain Your Business: Common Tax Deductions

Posted on by

January is winding down meaning that tax season is officially upon us. Gone are the carefree days of the holiday season and now the inevitability of taxes is looming ahead. Don’t lose heart though! Paying taxes is a requirement but paying too much in taxes is not. 2011 presents new opportunities to excel at preparing your taxes by using the allowable deductions to your advantage. Here are five of the most commonly missed tax deductions. Learn them. Love them. Use them on your tax return this year.

1. Healthcare Tax Credit. If you own a small business that pays for at least half of its employees’ healthcare coverage, you’re eligible for a tax credit of up to 35% of what you spend on the health insurance premiums. The credit is maximized for businesses that have ten or fewer employees that average $25,000 or less in annual wages so smaller businesses are favored here. If you have a qualifying business (based on number of employees and average annual wages) but aren’t paying for at least half of your employees’ healthcare coverage, now is the time to consider changing your practices. The maximum available credit will be raised to 50 % in 2014!

2. Health Insurance Deduction for the Self-Employed. Maybe you’re self-employed and paying for your own health insurance? In past years, the money you spent on health insurance premiums has only been eligible as a deduction on your income tax, not your self-employment tax. This year, however, it’s available as a deduction on both taxes. Don’t forget to include it twice when you prepare your returns.

3. Depreciation on Your Business Car or Truck. If you bought a new truck or car for your business last year, this one’s for you. Depreciation amounts on new passenger vehicles purchased to use in a business are significantly higher this year than last, building on top of the usual first-year deduction that is allowed. Gas and maintenance on this vehicle (and others already purchased for your business) are also deductible for any transportation you do for the business. Say you own a furniture store and have a truck you use exclusively for delivering furniture, 100% of gas and maintenance will be deductible, including any money you pay for parking and toll roads.

4. Out of Town Business Travel Costs. Almost any travel you do for business is deductible on your taxes for at least some percentage. This includes business meals, travel costs (think baggage fees!), and hotel rooms for the duration of your trip. It’s important to keep the receipts from your travels and also keep track of where you’ve been and what you did while there. A cab here and there while out of town for business can add up quickly on your tax return.

5. Home Office Deduction. Do you work out of a home office? If so, there are many deductions you may be missing on your tax returns. Deductions for qualifying newly acquired equipment and computer software are easy enough but it’s important to know that you can take deductions for many fees charged to your business account including ATM fees, credit card fees, and bank charges. You can even deduct for the space you use in your home and for the percentage of internet and phone that you use for your business! While calculating these percentages may seem difficult in the beginning, it can be a great benefit to you in the end when it comes time to pay your tax bill.

Many of these deductions may seem easy enough to master now but when combined with the other myriad of deductions, credits, and exemptions that must be remembered when filling out a tax return, they frequently fall by the wayside. Don’t let this happen to you!

Learn more about managing your small business HERE!

Share!!!

Need help finding a CPA?

Posted on by

Let us assist you in finding the right CPA for you and your business at no charge.

We know that many of our customers need help with issues involving accounting and taxes. At no cost to you, we can help you find a qualified Accountant that understands your business.

We have a network of over 450,000 CPAs to help you find a good match based on your location and services requested. We will have up to 5 Accountants contact you to discuss your needs. You are in no way obligated to use the services offered by any CPA – simply hear what they have to say, and the decision is yours.

Click here to submit your information to get matched with a CPA.

Share!!!

Corporate Compliance in the New Year

Posted on by

The new year is the perfect time to get organized and clean up your business matters…Whether it’s forming a corporation or limited liability company (LLC), protecting your business assets, or maintaining/updating your corporate or LLC documents, now’s the time.  It’s a new year and time to start 2008 on the right foot – and MyCorporation.com can help with all of your business and document filing needs.             The following advantages of incorporation should be considered when forming a business: (1)        Incorporate!  The most obvious advantage of incorporation is the limited liability of the company’s shareholders. A company is an entity separate and distinct from its shareholders. The company owns and operates the business and also incurs its liabilities, therefore, the owners of a corporation or LLC can minimize, if not eliminate, the personal risk. Forming a Corporation can provide the protection and tax savings needed to give you peace of mind and make your business even more successful and profitable.  (2)        Benefits to Incorporating. The following are just some benefits associated with incorporating: (a)        Tax Advantages.  Incorporation often provides fore greater tax deductions for the business, your employees, and potentially for family members of business owners.  Even if you are the only shareholder and employee of your business, benefits such as health insurance, life insurance, travel and entertainment expenses may now be deductible (b)        Easier access to capital. Most sole proprietorship and partnership business owners know how difficult it is to raise additional capital for their businesses.  Investors tend to shy away from partnership investments because of the risk of subjecting their personal assets to the liabilities that may arise from the business in which they are investing.  On the other hand, a corporation can readily raise capital by issuing additional shares of stock.  Investors can purchase shares in return for their capital.  This allows a business to raise money without incurring debt or interest charges, thus lowering the cost of capital.   (c)        Easier transfer of Ownership.      Through the sale of stock, a corporation can quickly transfer ownership interest without substantially disrupting operations, complex legal documentation, or dissolving the corporation.  Transferring ownership and raising capital are usually easier through the use of stock. Corporations usually have a perpetual life as well, distinct from that of the shareholders. The following items should be considered to maintain full corporate compliance and the protections offered in connection with corporations and LLCs: (1)        Annual Report Filings for Corporations & LLCs. Most jurisdictions require corporations and limited liability companies (LLCs) to pay annual fees and taxes for the privilege of operating as a business entity. In addition to these annual fees, most states also require that corporations (and often LLCs) submit information about corporate status and activities or corporate changes that will become public record. In most states, this information report is referred to as an “Initial/Annual Report” or “Statement of Information.” Corporations and LLC are required to file this Annual Report/Statement of Information even though they may not be actively engaged in business at the time this filing is due. The applicable filing period varies by state and, in most cases; the fees associated with these “informational filings” are nominal. However, if you fail to provide the required information in a timely manner, your corporation and/or LLC could be subject to suspension and/or revocation in addition to penalties or late fees imposed by the state. (2)        Articles of Amendment or Dissolution.  Many states require that a corporation file a Certificate/Articles of Amendment when making an addition to, deleting from, or otherwise altering the existing provisions of the Articles of Incorporation for a General, for-profit Corporation.  If such additions, deletions or alterations have taken place, it is important to consider filing the appropriate Amendment with your Secretary of State.  Also, in the event that a Corporation or Limited Liability Company wishes to terminate its existence, the entity must file Certificate of Dissolution or Articles of Dissolution.  (3)        Entity Conversions.  Many states now allow for the conversion of a stock corporation into a Limited Liability Company, Limited Partnership, or General Partnership.  In addition, a domestic LLC, LP or GP and a foreign entity may, in some jurisdictions, be converted into a Domestic Corporation.  As such, it is important to consider your entity’s desired corporate status, and consult with your accountant regarding the impact of potentially converting your entity, which would require filing the appropriate conversion with the corresponding Secretary of State. (4)        Bylaws, Minutes, Notices. Internally, it is important to maintain corporate documents and observe corporate formalities so as to maintain the protections afforded by your state’s corporate laws, and to minimize the potential for personal liability.  Accordingly, you should make sure that your corporate bylaws are in place, and up to date. 

n>In addition, your state may require that you give appropriate Notice of Regular Annual Meetings of the Board of Directors and Shareholders (or the appropriate Waiver of Notice).  Such documentation is important to maintain on an annual basis, and the beginning of a new year is a great time to make sure your corporation or LLC is “in order.” Each of these items should be considered at least on an annual basis, but the beginning of the year is the perfect time to make sure your corporation or limited liability company is in good standing and that you are handling all of your corporate matters in a timely fashion.  If you need assistance with any of these document filings, MyCorporation.com offers document preparation and filing services to meet your business needs.

Share!!!