Business Basics: End of the Year Prep

The end of the year is right around the corner, and every year we hear small business owners panicking about December’s rapidly approaching end, wondering what they have to do to end the year right. Not to worry – ending the year is actually pretty easy, as long as you don’t wait until the last minute to get everything done! So if you haven’t already, start thinking about…
End of Year Prep

Submitting any filings or dissolutions

Some of the most common questions we are asked revolve around the best time to form an LLC or incorporate. And while there are no ironclad answers to those questions, the beginning of the year is normally a good time to send in that paperwork. Deadlines and renewal dates are easier to remember, staying on top of your taxes is simpler, and you can even file your paperwork early and miss the beginning of the year rush if you opt for a delayed filing. Continue reading

Business Basics – Estimated Tax Payments

Estimated tax payments are one of the biggest shocks for new business owners. They know that they have to pay taxes, they just don’t realize they have to send in a check four times a year! Most businesses that expect to more than $1,000 – or $500 if the company is incorporated – in taxes have to make estimated payments to the IRS. And, since the next quarterly payment is due on September 15th, we thought it’d be a good idea to do a quick rundown of what estimated tax payments are.

Estimated Tax Payment

What are estimated tax payments?
Exactly what they sound like. These payments are simply what you’d normally owe on your income. However, since you don’t have an employer to withhold and send in what you owe, you have to do it instead.
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How to Handle Upcoming QETs

How to Handle Upcoming QETsIt’s that time once again: time to whip out the finance books and try to figure out just how much you owe for quarterly estimated taxes, or QETs. More sitting down at the dining room table, going over numbers, scratching your head trying to figure out what this abbreviation stands for…

Wait, you don’t know what this is about? Quarterly estimated taxes are a big part of the small business owner’s life as they’re constantly buzzing around just around the corner, ready to pounce and make a mess. However, many small business owners still manage to forget about them, leading to headaches and possible fines.

Instead of putting them off, read our quick guide so you can get ahead of the game!

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15 Essential Financial Planning Tips for Entrepreneurs

15 Essential Financial Planning Tips for EntrepreneursWhether you’re a new entrepreneur or an old hand, money occupies a prominent role in your business. Failing to get – and keep – your finances in order can doom your company or consulting practice in the long run. While each entrepreneur has their own set of unique financial challenges, there are several areas where nearly all entrepreneurs can draw from a general well of wisdom.

1. Pay yourself first, Uncle Sam second.

No doubt, you’ve heard the expression “pay yourself first.” That’s good advice for everyone. However, entrepreneurs must remember that with no employer-initiated tax deductions to count on, they must also make provisions to cover self-employment taxes.

2. Hire pros, but know what they’re doing.

You didn’t go into business to spend hours working on spreadsheets. That’s why you hired a Certified Public Accountant. However, you should still understand the basics of keeping the books, if for no other reason than to be able to answer your accountant’s questions at tax time.

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Tax Stats 2014 (Infographic)

The 2014 tax season is here and here at MyCorporation, we’re taking a closer look at taxes in the United States and throughout the world in our latest infographic. Curious about where your tax dollars go? How the state corporate income tax rates vary throughout the U.S. and how they’re compared from all around the world? And what do we plan on doing with our tax refunds this year, anyway? Find out the answers to these questions and more below!

Tax Stats 2014 Infographic

3 Different Ways You Can Pay Your Taxes

3 Different Ways You Can Pay Your TaxesThis post is brought to you by GoDaddy Online Bookkeeping (formerly Outright) the simplest way to manage your small business finances online. Sign up today for a less taxing tax time!

Think there’s only one way to pay your taxes when you have an amount due? Sure, in years past that was the case. You could send a check along with your filed tax forms and that was pretty much the extent of it. Paying taxes was part of the reason why tax time was such a pain for every hard working person in America.

Now, though, technology has made it where you have lots of options when it comes time to fork over your hard-earned money. However, you can’t utilize them if you don’t know what they are, so we thought we would take a quick look at your options to help you out. One of these should help you comply with your tax obligation with no problem.

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5 Tax Deductions for Your Small Business

5 Tax Deductions for Your Small BusinessIt’s the season to get your paperwork ready for Uncle Sam. As you prepare for April 15, be sure to remember the available deductions you can take advantage of as a business owner.

Your taxable profit will be lower the more deductions you take, so it’s in your best interest as a business owner to maximize them, so long as they adhere to the IRS deduction rules.

1. 401(k)

Most “small” businesses do not provide a 401(k) as a benefit for their employees, but if you can, you have a distinct advantage when hiring. And, a 401(k) plan has several tax advantages. First, your business is generally permitted to take a tax deduction for its contributions to the plan when the contributions are made. Those can be made as a simple match—or—in the form of profit sharing.

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Should Your Business Buy or Lease a Company Car?

Should Your Business Buy or Lease a Company Car?When it comes to obtaining a company vehicle, you have a couple of options available to your business – you can opt to either buy or lease. Let’s examine these options in detail.

Buying a car

If you decide to buy a car, keep taxes in mind. Writing off the costs on your taxes can be done in two ways – actual costs or mileage – and there are limits on how much you can take in a given year. If you choose actual costs, you have to do that every year you claim the vehicle; you cannot change your mind later. There are different amounts you can write off depending on the type of vehicle you own, too, whether it is an electric car or an SUV. If you’re looking to invest in a hybrid vehicle for your business, be sure to keep in mind that it will no longer qualify for a tax break.

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5 Filing Tools Entrepreneurs Need for Tax Season

5 Filing Tools Entrepreneurs Need for Tax SeasonJust like the annual trip to the dentist, tax season has crept up on us once again. To take the analogy a step further – if you have brushed, flossed, and rinsed as you should, your visit to the dentist will be quick and pain-free (both physically and financially). However, if not, the pain will long and agonizing. Similarly, if you have kept your accounting records in order the whole year with a constant eye on the upcoming tax season, preparation of your accounts will be pain-free (both from a time and cost factor). If not, the auditor may come to pay you a visit.

Thankfully, these days there are numerous tools to ease the burden of preparing all your tax season documentation. The following are five tools that will help you through the tax season with a minimum of fuss.

1. Salary Calculator – If you haven’t been using a salary calculator to assist in calculating what is left of your gross salary after taxes or to extrapolate weekly, monthly, or annual wages from an hourly wage rate, then you have been wasting your time. There are salary calculators freely available online. They are easy to use and are an excellent basis for preparing your tax return.

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