5 Questions Small Businesses Should Ask Before Spending

One of the keys to startup success is the ability to efficiently manage scarce resources. Among the scarcest resource for any small business is money. Startups have to adhere to a budget and know what and where the money they are spending is going to.

Asking the right questions can lead small businesses down the right path. When it comes to money, here are five questions that small business owners should be asking in order to get the most bang for their business’ buck. Continue reading

S-Corporation 101: What you need to know

With the tax season upon us, we’d like to help shed some light on tax issues. Every Friday for the next several weeks we will discuss how the following tax considerations apply to different business entities. (Look for the little piggies!)  The considerations are:

  1. 1. Pass through of gains
  2. 2. Pass through of losses
  3. 3. Transfer of assets to the entity, and
  4. 4. Transfer of assets from the entity

This week we’re going to cover the S-corporation.

What is an S-corp?

For starters, an S-corporation starts just like a normal C-corporation. The letters (S & C) are designations from subchapters of the IRS code. Most corporations are C corporations. An S corporation is a corporation that has made a special election to be taxed in a certain way. Because of this special treatment, there are additional rules and restrictions on top of the standard corporate law requirements. Continue reading