As Benjamin Franklin once said, ‘In this world, nothing can be said to be certain, except death and taxes’. He was definitely right, as anyone who fails to pay his dues or pays less than what he is supposed to pay to the Internal Revenue Service (IRS) can face some serious consequences. The IRS is known to charge such individuals with not only penalties but also the back taxes along with interest. The letters that are often sent by the IRS are often confusing and downright scary, especially if you do not understand them. Avoiding your taxes or filing them incorrectly can end up to be a very expensive and stressful situation for you. There are ways to fix the situation without too much expense or headaches. (more…)
By Greg Lindberg, 1800Accountant.com Writer
Do you have plans to launch a brand new small business? Are you ready to take the dive toward a profitable and rewarding future? If you intend to become a newly crowned business owner, it is vital to ensure you know what types of business structure options exist so that you choose the one that is most appropriate for you. This includes understanding how each type of business entity is taxed. One option is to go with a C corporation, which is considered the most traditional type of business structure.
When it comes to filing federal taxes, the IRS treats C corporations as separate business entities. A C corporation can be created when there is an exchange of money or property among prospective shareholders who make up a business. This is done for the capital stock of the business. The advantage of a C corporation is that it typically can claim more tax deductions than the ones available to sole proprietorships or partnerships when calculating their amounts of taxable income. Tax deductions can lead to big savings, helping small business owners hold on to more of the income their companies bring in.
New businesses often risk shooting themselves in the foot as they’re getting started. It’s not easy to be an entrepreneur! Not only are you getting your business up and running, your operations solidified, and your marketing strategy off the ground, but you are also trying to make sure you’re managing your business properly and minimizing liability. Below are some tips to help you navigate the tumultuous waters you might face when starting your business: (more…)