When does side income become a business? Many people are surprised to learn they already have a business for tax purposes — even if they never formed an LLC or thought of themselves as “business owners.” The IRS uses a very broad definition of a business for tax purposes. Understanding whether what you’re doing counts as a business can dramatically affect your taxes. It determines whether you can […]
Surprise! You Just Started a Business Read More »
Many business owners would just look at inflation in terms of the standard published rate, such as the CPI (Consumer Price Index), and feel on top of things if they do an equal or greater price increase this year. But this article is going to show you how inflation specifically impacts your business and help you understand what actions
The Business Owner’s Guide to Dealing with Inflation Read More »
Electing S corporation status can feel like a smart tax move, and in many cases, it is. You may reduce self-employment taxes and keep more of what you earn. Those savings come with real responsibilities though: running payroll, filing Form 1120-S, tracking shareholder basis, and following strict IRS rules. Before you file Form 2553, make sure
S Corporation Election: Tax Savings with Strings Attached Read More »
If you only look at your numbers once a year, you’re trying to run a business based on financial guesses. Guessing wrong can cost you dearly. Monthly accounting is different. It turns your numbers into a tool that saves you time and money. Annual tax survival mode is sometimes enough to keep the IRS off your back, and it can seem like a
Monthly Accounting: The Tool Smart Business Owners Use to Increase Profit Read More »
At some point, every growing business runs into this question: “Do I need to offer a retirement plan?” What looks like an employee benefit decision is really a business and tax strategy decision. Get it right, and you can save more for yourself, reduce taxes, and improve retention. Get it wrong, and you’re stuck funding a plan
Should I Offer a Retirement Plan to My Employees? Read More »
Most business owners don’t know what to ask when hiring an accountant. And too many firms make vague promises, or set no expectations at all. So here are some clear, direct answers from Bearden Stroup CPAs to 4 key questions you should ask before you choose an accountant. What does your pricing include (and what doesn’t it)? Software: Our quotes will include subscriptions to the software that you need, so you don’t have to pay
4 Key Questions You Should Ask Before Hiring an Accountant—And Our Straight Answers Read More »
Business owners often ask if they can write off bad debts from customers. The answer depends on whether the taxpayer is using the cash basis or the accrual basis of accounting. For cash-basis taxpayers, however, the short answer is no. You generally can’t take a deduction for unpaid amounts because your taxable income already shows only the cash you actually received. Cash Basis vs. Accrual Basis Accounting Why Cash-Basis Taxpayers Don’t Deduct Unpaid Invoices At
Can A Business Deduct Bad Debts? Read More »
For many business owners, paper checks feel familiar, straightforward, and tangible. But in today’s business environment, this method creates hidden risks, inefficiencies, and expenses that you didn’t see coming. As bookkeeping systems, banks, and vendor processes have evolved, checks haven’t kept pace. What once felt simple is now one of the most cumbersome, expensive, and fraud-prone ways to move money. Here’s what every business
When to Create a Second Legal Entity Separate from Your Main LLC Most small businesses begin with a single LLC, and that is usually the right approach. One entity is usually simpler, cheaper, and easier to manage. But as a business accumulates assets, expands activities, or engages in more complex transactions, sometimes a second LLC is not only reasonable, but strategically
Reasons to Start a New LLC Read More »
Having a healthy fear of debt is good thing—it can ruin lives if it’s used recklessly. But debt can also create positive results when it is used responsibly. Debt is a tool. Just like a chainsaw. Use it the right way, and you can clear a path. Use it wrong, and you can lose a leg. Here’s what too many people miss: debt magnifies everything. It
Debt Is a Tool—Here is the Safety Manual Read More »
