When Starting a New Business - Part 1


         This may be the time of year when business ideas, become plans. This can be the time, when those plans are put in motion and a new business is started. When this decision is made, it is always an exciting time. However, it is also a time when many questions need to be answered. It would be appropriate to seek the guidance of a Qualified Tax Professional to firmly establish your business. Our series will look at 5 ways this can be done.
          Structure. The way a business is structured will affect every other tax, finance, and legal aspect of the business. There are 5 options. They each have details that must be considered carefully before making a choice. The options are Sole Proprietorship, Partnership, S Corporations, and Corporations. The fifth option of Limited Liability Corporation is allowed by state statutes. A Qualified Tax Professional would be an essential advisor at this stage. Our next post will explain why.

Comments

Post a Comment

Popular posts from this blog

The Start of Tax Season

        The Internal Revenue Service ( IRS ) has announced that the beginning of tax season will be January 27, 2025. It would be best to organize financial and tax related documents now. It will simplify the filing process and reduce overall stress. However, it must be stated that for many of us, these times are anything but simple.         The fires across the Los Angeles area have forever changed so many lives. For this reason, LA County has been declared a federal disaster area. That has allowed the IRS to postpone the filing deadline to October 15 . This allows for those impacted directly by the fires to focus on what is most important right now and work on rebuilding their lives one step at a time.
Read more

Offer-In-Compromise, Not for the Short Term

         Some might think that if they have hit hard times, or if they have an unexpected tax debt, that this will make them an Offer-In-Compromise candidate. This is very unlikely. From the point of view of the IRS, most people will eventually get a new job . At that point, their income will increase, and they will be able to pay their tax debt. This is the same reason why active businesses are rarely granted Offer-In-Compromise status.           If a business is open, the owner expects to make a profit . With that future profit, tax debt can be paid. If the issue deals with payroll taxes, the resolution becomes even clearer. Those who are considered “responsible parties”, such as owners or financial officers, can be held personally responsible for that tax. Even if you can qualify, the work has only just begun. 
Read more

Protect Yourself from Threats

            When it comes to data security threats, the challenges never end. The tactics that criminals use continue to change, but there are some basic things to keep in mind. When it comes to mass email messages or texts, the goal is to get someone to click on a link to steal information or download malware. This is phishing or smishing. An update to this scam is called clone phishing. In this variation, a real email is copied and sent to the recipient again. This time it has an attachment with malicious software or a link to a website designed to steal your personal information.           We can never be too sure how the attack will present itself, but we can be prepared with security measures to protect ourselves. Stop and be aware of warning signs. Unexpected messages with urgent tones telling you to click or download something should be examined closely. Getting a repeated message from a trusted source w...
Read more