Congress recently passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. There are provisions in this 335-page bill that affect just about all Americans, both individuals, and businesses. There has been much information and speculation as to what is in the bill and this article will attempt to shed some light on the more important items that affect small businesses.
The CARES Act is an example of the difference between a new law and what really happens.
At some point in their existence, a small business may face the decision about whether to hire a Controller. The timing of this will vary widely among businesses depending on their size, projected future growth, current staffing, and organization of the firm’s accounting function. It will also depend on what the business owner or management expects a Controller to do and what they can afford to pay for that position.
Small business owners often wonder what they can deduct in their business. There is a perception that because you own a business, there are all sorts of tax write-offs (loopholes) that can be taken advantage of.
This is true, to an extent. The tax laws do favor businesses in what they can write off compared to individual taxpayers. What is important to remember, though, is that these write-offs can be subject to the size and scope of the business in question.
A taxpayer can receive a notice from any taxing agency they are subject to. This could be a state agency for income, sales or payroll (including unemployment) matters or, of course, the Internal Revenue Service (IRS) for federal income or payroll tax matters.
Every year, as April 15th rolls around, there is a flurry of activity as most Americans seek to file their tax returns. There are many ways to get all those forms filled out and sent off to the Internal Revenue Service (IRS). You could do it yourself by filling in the form manually. You could also use one of the many popular tax software programs currently available, from the free to the very simple and inexpensive to the very complex and very expensive (remember you get what you pay for). You could also seek out a tax preparer who will fill out the forms for you and charge you for their services.
But, as with the software programs, there are many options and skill levels available. And what about filing the return, should it be mailed or does it have to be filed electronically? Finally, what if you need to file an extension.
The choice of entity is one of the most important decisions a new business owner faces. Many new businesses are automatically set up as an S-Corporation as part of the overall formation process without any thought given to the potential risks or benefits of that selection, or for any other option also available.
The question of whether a company should elect S-Corporation status depends on several factors that will be explored in this article.
Small businesses exist for many reasons but all share a common purpose:
The use of a vehicle is normally an ordinary and necessary expense of conducting business and, as such, is eligible for a deduction. In practice, there are a number of aspects to consider and, if they aren’t, the deduction may not be allowed.
