Anthony Sykes & Company

    When choosing to start their own business, the owner’s personality will certainly play a role in the process. We all have our own innate strengths and weaknesses. These aspects of our personality will allow the business owner to meet and easily care for certain challenges that will come up. However, there will always be times when our limitations become clear and help is needed. When this happens, what is the best way to move forward?     Small businesses that specialize in Software Development can find themselves in this kind of situation. A group of less than 20 hardworking software developers can rival any big firm. They can work together quickly, on their own or in teams, to provide the tools their client’s needs. But, their main focus will always be creating software. In a Small Business there must be management, tracking of cash-flow from month-to-month, estimation of costs, and financial goals to reach for. Software Developers are usually true special...

     When thinking of a Trust, most people feel that it is a tool used only by the very rich. That can be true, but a Trust is also a very useful option for all no matter what your financial standing. There are a variety of Trusts that can be created for different reasons. The options can be a little overwhelming. Before making a decision, it is necessary to discuss with your Qualified Tax Professional what your goals are. When you clearly have in mind what you want the outcome to be, then it will become easier to make the right choice.       This post will give a brief overview of what Trusts are and how they work. In general, there are 2 types of trusts. A living trust is created while the person who created it is alive. It can be cancelled or changed while they are still living. A testamentary trust goes into effect when its creator dies. At that point it cannot be changed. The basic idea behind a trust is to put any assets (cash, property, stock...

         So much has been made about what Tax Reform will change. For the most part, the focus has been on what it can add to the financial landscape for taxpayers and businesses. This is true. However, this sweeping change to Tax Law has also removed a variety of credits and deductions that many have come to view as normal. Let’s take a look at some of what is no longer available to use.           Business entertainment deductions have been a staple for many companies. When celebrating business relationships most firms enjoy going out for a good meal. In the past, up to 50% of those costs could be deducted from taxes. Now that number is 0. For those involved in some form of alimony payments, the one receiving could count it as income; the one paying could count it as tax-deductible. That will continue for most. However for those who are divorced after December 31, 2018 it will change. These payments will no lo...

Every business has to take its own path to success. This course is often affected by the industry and simply the type of business it is. They are unique, and therefore cannot be treated the same. This is true of businesses in the field of architecture. This industry literally touches every aspect of daily living. However, when it comes to the area of finance, these firms must look at it in a different way in order to stay competitive. In order for small architectural firms to be able to compete with large businesses, they must focus on their craft. It is unreasonable to take away one of the employees from a renovation or new build design, to focus on taxes or cash flow. This is a recipe for disaster. If mistakes are made, fines and penalties can put the future of the company in doubt. Missing potential deductions will increase a burden and keep the company from reaching its full potential. For these reasons, small architectural firms benefit greatly from making use of the service...

         Each business venture is special when you consider the challenges that can come up, and the decisions that need to be faced. There are many factors that must be considered. Getting a clear look at the type of business and industry will allow for the best perspective. Sometimes, there are there are industries that have consistent opportunities for growth. We will take a look and see how this is true of the Trucking industry.           The lifeblood of every economy is the ability to ship goods from one place to another. Trucking has been, and will continue to be, at the center of the US economy. Considering the current emphasis being put on domestic goods, the Trucking industry is poised to be at the center of a financial gold mine. This might make taking the risk and becoming an Owner-Operator in the Trucking field worthwhile. With that said, there is no substitute for experience. It might look like a gr...

         Another option when making the decision to incorporate is to choose to create a Limited Liability Corporation ( LLC ). In this situation, the owners become members and having many of the same benefits that an S-Corp or C-Corp would have. In addition, there is the flexibility of applying the profits and losses to individual members. That tax information would then be put on the individual Tax Return. There are typically no ownership restrictions, and management structuring is not as rigid.           However, there are still continual requirement that must be met each year to keep the LLC legal. This would include annual reports and fees. Some research must be done at the state level first to make sure that an LLC is allowable. This can be a good choice depending on your circumstance. Our Incorporation Services can show you the facts and help you make an informed choice.

Each business has its own unique set of challenges to face, and decisions to be made. There are many factors that need to be considered. The type of business and industry that it is in will play a key role in getting a clear understanding of things. Other times, the right set of circumstances may come into play and make what seems to be an ideal situation. We will take a look at how this is true of the Manufacturing industry. The recent Tax Cuts and Jobs Act has made changes that will directly affect Manufacturing industry businesses. For example, Tax Reform has made it possible to deduct the full cost of property bought and used, as long as it is done so before 2023. This provision will be reduced by 20% each year afterward and then expire by 2027. Incorporated manufacturers will see a lower Tax Rate as well. There are certainly some immediate benefits to being a manufacturer in the times we are living in! However there are some drawbacks to consider. Owners of what can be called...

          There are many similarities between an S Corp and C Corp. They are both separate legal entities and have a similar internal structure. The limited liability protection basically keeps the owner or owners safe from personal responsibility for debts. They both are legally required to follow the same yearly requirements regarding bylaws, statements of information, and paying fees. However there are some very distinct differences that must be clearly understood.           The largest difference revolves around taxation. C corporations are their own entities and file taxes at the corporate level. An S corporation is considered a pass-through entity. This means that all profit or loss goes through the business and is reported on the owners’ personal Tax Return. The owners’ will pay the tax on their level. There is a limit of 100 shareholders in an S corporation and they must all be US citizens. In this way, S ...