Both a C corporation (also known as a regular corporation or standard corporation) and an S corporation (also known as a small business corporation or Subchapter S corporation) are legal entities that are separate and distinct from their owners. The main difference between the two is the way in which they are taxed. A C …
What are the advantages and disadvantages of a C Corp. vs an S Corp.? Read More »
A C corporation (also known as a regular, standard or traditional corporation) is a legal entity that is separate and distinct from its owners. A C corporation is owned by shareholders, who elect a board of directors to oversee the management of the company. The board of directors hires officers to manage the day-to-day operations …
An S corporation (also known as a small business corporation or Subchapter S corporation) is a type of corporation that elects to be taxed under Subchapter S of the Internal Revenue Code. Like a C corporation, an S corporation is a legal entity that is separate and distinct from its owners, and it is owned …
A partnership is a business structure in which two or more individuals or entities operate a business together. Partnerships are formed when two or more people come together to run a business and share in the profits and losses of the business. There are several different types of partnerships, including general partnerships, limited partnerships, and …
What is a Partnership? How many people can work together in a Partnership? Read More »
To form an LLC in your state, you will need to follow the specific LLC formation procedures and requirements set forth by your state’s business division or secretary of state’s office. Generally, the process for forming an LLC includes the following: Steps to create an LLC Choose a business name: You will need to choose …
How do I file as an LLC in my state? What is the easiest way to file as an LLC? Read More »
We mentioned this last time when discussing the LLC structure, and it’s not obvious what the advantages and disadvantages of a pass-through entity versus a standard C Corporation are. A pass-through entity is a type of business structure in which the business itself is not taxed on its income. Instead, the owners of the business …
A sole proprietorship is a business owned and operated by a single individual, while a limited liability company (LLC) is a hybrid business structure that combines elements of a partnership and a corporation. Here are some key differences between a sole proprietorship and an LLC: Ownership: A sole proprietorship is owned by a single individual, …
A sole proprietorship is usually the easiest legal structure to use for setting up a company. It can be as simple as deciding you’re in business. Congrats, you’ve established a sole proprietorship! In this case, the ‘company name’ would be the same as yours. A sole proprietorship is a business owned and operated by a …
What is the easiest legal structure to use for setting up a company? Read More »
During the next few posts we’ll be covering the different ways you can structure a new company in 2023. We’ll discuss the differences, advantages and disadvantages of a Sole Proprietorship, Partnership, LLC, C Corporation and S Corporation, and Nonprofit Corporation. In most cases, a new business without outside funding by wealthy investors will either be …
What are the 5 basic legal structures for a company in the United States? Read More »
Losing business receipts can be frustrating and potentially costly, as receipts are important for record-keeping and tax purposes. If you lose a business receipt, here are a few steps you can take: 1. Check with the vendor: If you made the purchase from a vendor, you may be able to request a copy of the …
What should I do if I lose my business receipts? Read More »
As a general rule, it is a good idea to keep copies of receipts, bills, and invoices for your business for at least three years. This is the standard retention period recommended by the Internal Revenue Service (IRS) for most business records. However, the specific retention period for your business records may vary depending on …
How long should I keep copies of receipts, bills and invoices for my business? Read More »
Yes, you should almost always be sending customers receipts! It’s an important part of the sales and bookkeeping process for both you and your customers. Here’s why: 1. Proof of purchase: A receipt serves as a record of the transaction and can serve as proof of purchase for the customer. This can be particularly important …
Why do I need to send customers receipts? Is an invoice good enough? Read More »
This is a really common question, especially for startups, sole proprietorships, and LLCs that are new and might have zero employees yet. Except you, that is! Are you considered an employee by the IRS? Do you have to pay yourself as a sole proprietor or one person LLC? Whether a company needs to run payroll …
Whether to do your own bookkeeping or hire a bookkeeper depends on a variety of factors, including your time, expertise, and resources. Here are a few things to consider when deciding whether to hire a bookkeeper: 1. Time: If you are running a business, you have lots of other tasks and responsibilities on your plate. …
A remote or virtual bookkeeper is a professional who performs bookkeeping tasks remotely, typically using online tools and software. Virtual bookkeepers typically work from a remote location. That could be their home or a co-working space, or a traditional office as close as next door or halfway across the world. Virtual bookkeepers generally perform the …
You may need to obtain a Form W-9, Request for Taxpayer Identification Number and Certification, from contractors or small businesses that you buy goods or services from if you will be making payments to them of $600 or more in a tax year. The Form W-9 is used to collect the contractor’s or small business’s …
The $600 tax reporting requirement refers to the Internal Revenue Service’s (IRS) requirement that businesses and individuals must report certain types of income on their tax returns. Specifically, businesses and individuals must report income received through payment services such as PayPal, Venmo, and Zelle if the total amount received from a single payer exceeds $600 …
What is the $600 tax reporting requirement for PayPal, Venmo or Zelle? Read More »
