Posts Tagged ‘Tax Advisor’
Accumulated Earnings (or Retained Earnings) Tax Part 2
The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. There has been significant case law supporting the Bardahl formula, which basically says that accumulated earnings are the working capital of the company. The working capital, or Bardahl formula, [...]
...Accumulated Earnings (or Retained Earnings) Tax Part 1
The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. When a C Corporation goes over the $250,000 accumulated retained earnings cap set by the IRS, that money may become subject to something called the “retained earnings tax.” This [...]
...Personal Holding Company (PHC)
The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. A personal holding company is a corporation that has been established for the main purpose of collecting dividends, interest, and other solely passive investment income. It’s defined as a [...]
...Why the LLC is a Great Choice for You
The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. There are two major reasons to prefer an LLC over either a C or an S Corporation: Better Asset Protection, and Flexibility for Tax Elections. The corporate veil gives [...]
...Bootstrapping Part 2
The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. Here are more strategies for funding your business by bootstrapping. Create a sales funnel. The sales process resembles a funnel. At the top end, the widest part, are the [...]
...Bootstrapping Pt. 1
The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. Most small businesses fail because of a lack of cash, one strategy to find money for your business is boostrapping. Bootstrapping is just as it sounds: the ability to [...]
...Electronic Data and Federal Privacy Regulations
The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. If you are only keeping records in electronic form, make sure that you back your data up regularly. Think about the critical impact that a lost, stolen, or crashed [...]
...Four Mistakes You Don’t Want To Make When Filing Your First Tax Return
The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. If you’ve already filed your first tax return for your new business, it may be too late for you. However, it’s a good idea to go back and take [...]
...Accounting Equations
The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. Assets = Liabilities + Equity Account is all about balance. If you survived basic algebra, then you know that everything on either side of the equal sign needs to [...]
...Tax-Deferred or Tax-Free?
The following is an excerpt from the book Smart Business, Stupid Business, written by Diane Kennedy of US TaxAid and Megan Hughes of Smart Business Incorporation. Tax-deferred means tax later. Tax-free means tax never. A tax-deferred plan means you defer the tax due on income in the pension until a later date when you distribute [...]
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