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Installment Plans

Except for the few of our clients who are C-Corp shareholders, the profits from most small businesses flow through to the owners’ personal returns, and are taxed at the individual level. For anyone who was stuck with a higher than expected tax bill, it’s worth mentioning that the IRS is fairly accomodating with installment agreements. […]

Quarterly Estimated Payments

Since 2014 is already well underway, I thought a quick primer on quarterly estimated tax payments would be appropriate this month. Who needs to make quarterly payments? Theoretically anyone who owes more than $1k in tax at the end of the year should be making quarterly estimates. The idea is that if you owe too […]

Retirement Plans

This month I wanted to give just a quick overview of some common retirement plans for small businesses, with a few pros and cons of each. This is certainly not comprehensive, but rather meant to give you a feel for some of the options out there. If you have any questions about these plans, including […]

S-Corp health insurance

For S-Corp owners (anyone who owns more than 2% of the stock, and includes their family members), the corporation is not allowed to take a deduction for the health insurance premiums it paid unless the amount is included on the owner’s W-2. You’ll need to work with your payroll provider to make sure the amount […]

Inventory

If you have items you sell at retail or wholesale, you probably will not have bare shelves at the end of the year, so you have to count your inventory. I recommend that you make a list of all your items and their unit cost. Then just count the number you have in stock and […]

Reasonable Compensation

C-Corporations. If you pay yourself too much payroll, the IRS may claim that part of the payments should have been dividends. If the auditor reclassifies, it will lead to double taxation. S-Corporations. If you pay yourself too little payroll, the IRS may claim that part of the other payments to yourself should not have been […]