Partnership 101

For the last installment in our series on the tax treatment of entity types we’re going to cover the Partnership. If you’ve been keeping up with our posts, this will seem eerily familiar. Why? Because the LLC is typically treated just like a Partnership!

The four considerations we’ve been covering are:

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

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Simpsonian Wisdom: Taxes

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. Continue reading

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1099 Health Care Act: Information and Implications

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: Continue reading

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Last Minute Tax Tips

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. Continue reading

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Tips for Newly Incorporated Business Owners

Congratulations! You incorporated your business! Now comes the dreaded question: now what? One of the most common obstacles encountered by new businesses is their own fear or self-doubt. With confidence and a good network of other entrepreneurs, starting and growing a business can happen quite easily. It takes persistence and focus, but it can be done. Having good resources – other entrepreneurs, experienced business owners – who can serve as a sounding board is extremely important. Continue reading

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Common Tax Deductions Part 2!

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. Continue reading

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Love Your Business this Valentines Day!

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. Continue reading

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Maintain Your Business: Common Tax Deductions

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. Continue reading

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How to Finance Your New Start-Up

Once you have an idea for a business, the next step is trying to raise money to make your dream a reality. One of the biggest challenges facing a prospective business owner today is financing. Where do you find the money? How do you get it? For the business savvy owner, there are many different options for finding the money you need to start your own business.

1) Friends and Family
This is the most obvious place to look for financing options. Many loyal friends and relatives are more than happy to put some money into a start-up business when asked by someone they love and trust. Remember, though, to expand your friends and family circle, and don’t just look to your immediate family members and best friends. Make a list of everyone you know, including acquaintances that you see infrequently, and then follow up with those people too. You never know who shares your interests and might want to put some money into a business they believe in. Continue reading

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Will Businesses be Hiring in 2011?

The possible extension of Bush-era tax breaks, health care reform and an increase in the rate of hiring in November suggests that the economy is gaining momentum. Unfortunately, few expect a change in the 9.6 percent unemployment rate. Yet despite this constant, many economists are optimistic about the Nations hiring forecast.

Two pillars of the economy- jobs and consumer spending- appear to be on the upswing. Factories are producing, auto sales are rising and new businesses pop up daily. Also, applications for initial unemployment benefits hit a two year low in November. Also, 151,000 new jobs were created in November. Continue reading

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