Welcome to our ‘Tax Strategy for Small Business’ section, where we offer a wealth of knowledge and insights on various aspects of business taxation. Our team of experienced CPAs and financial experts regularly share articles to help you navigate the complex world of business taxes. Whether you’re seeking tips for deductions, updates on tax regulations, or strategies for tax optimization, you’ll find valuable information here. Stay informed and make informed tax decisions with Bearden, Stroup & Associates, CPAs.
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 »
Business owners often ask if they can write off amounts owed by customers on unpaid invoices as deductions. 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
Can My Business Deduct Unpaid Customer Invoices? Read More »
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 »
Understanding how to deduct transportation costs could significantly reduce the tax burden on your small business. You and your employees likely incur various local transportation expenses each year, and they have tax implications. Here’s a roadmap to drive down business taxes with vehicle cost deductions. Let’s start by defining “local transportation.” It refers to travel when
Drive Down Business Taxes with Vehicle Cost Deductions Read More »
Just a few days ago, Congress passed a huge piece of tax legislation, the “One Big Beautiful Bill,” that reinstates 100% bonus depreciation! If you are a small business owner, this can add up to some beautiful savings if you use the right tax strategies when you buy qualifying business property like machines, equipment, vehicles
100% Bonus Depreciation is Back, Baby! Read More »
We’ve been waiting in anticipation for a few years now about what the extension of the Trump tax reform Tax Cuts & Jobs Act would look like. Now it’s here – the One Big, Beautiful Bill Act. Setting other issues aside and focusing just on the tax law provisions, we’re fairly happy with the bill.
One Big Beautiful Bill Act – What It Means for You as an Individual Taxpayer Read More »
We’ve been waiting in anticipation for what the extension of the tax law would be in the 2nd Trump administration. Now it’s here – the One Big, Beautiful Bill Act. Focusing just on the tax law provisions, we’re fairly happy with the bill. The OBBBA generally extended all the provisions of the Tax Cuts &
One Big Beautiful Bill Act – What It Means for Businesses Read More »
File the Election with the IRS: Your LLC or corporation must file a form with the IRS to actually elect to be taxed as an S corporation.
Step-by-Step Guide for How to Become an S Corporation Read More »
Year-end spending can help lower your tax bill this spring. But watch out! You need to know which expenses will give you immediate tax savings and which ones might not. Tax Planning tips for your Small Business.
Smart Spending Moves for the Year-End Read More »
When you make charitable donations, you want to get the maximum benefit for tax purposes. You may wonder if you should run those donations through the business. Will you get extra tax benefit?
Should Charitable Donations Be Made by the Business or the Owner? Read More »
