One of the best small business-friendly aspects of the Tax Cuts and Jobs Act (TCJA) is the 20% deduction you can take on your income tax if your business is a pass-through entity. Here’s what you need to know about it. What Is the Deduction The TCJA was passed in 2017 and first
Authors Note: This has been updated on Nov 10, 2021 with updated information, links, and resources. If you’re an independent contractor, sole proprietorship, partnership or S-corporation, you’re probably required to pay your income tax in four installments throughout the year. Why? Because you have no employer taking that tax out of every paycheck
When state legislatures in the United States implemented the first sales tax laws to boost revenues in the 1930s, the American economy depended on the manufacture and sale of physical goods. Typically, early sales tax laws allowed only the taxation of “tangible personal property” (TPP), rather than taxing services. As the United States
If you’re like most small business owners, you started out as a sole proprietor. And if you came from being employed by someone else, you were totally shocked the first time you saw on your income tax return what you owe in self-employment tax. “What is that huge amount?” you asked. You were answered,
What is Form 1065? The IRS name for this form is “U.S. Return of Partnership Income.” This is an information return for partnerships to report the income, gains, losses, deductions, credits, etc. of the business. The partnership itself does not pay tax on its income. Instead, the profits or losses are “passed through”
What is Form 1099-Misc? This is the form that a business fills out for any freelancers or independent contractors that it hired. Copies of the form are sent to both the IRS and the contractor. Who must file Form 1099-Misc? If you paid freelancers or independent contractors a total of $600 or more
Small business owners know that every penny counts when paying taxes. The difference between a high and low tax burden can significantly impact a small business’s likelihood of survival. That is why picking the right city to base a business operation is important for entrepreneurial success. From small cities to major ones, certain
One of the best small business-friendly aspects of the Tax Cuts and Jobs Act (TCJA) is the 20% deduction you can take on your income tax if your business is a pass-through entity. Here’s what you need to know about it. What Is the Deduction The TCJA was passed in 2017 and first
Authors Note: This has been updated on Nov 10, 2021 with updated information, links, and resources. If you’re an independent contractor, sole proprietorship, partnership or S-corporation, you’re probably required to pay your income tax in four installments throughout the year. Why? Because you have no employer taking that tax out of every paycheck
When state legislatures in the United States implemented the first sales tax laws to boost revenues in the 1930s, the American economy depended on the manufacture and sale of physical goods. Typically, early sales tax laws allowed only the taxation of “tangible personal property” (TPP), rather than taxing services. As the United States
If you’re like most small business owners, you started out as a sole proprietor. And if you came from being employed by someone else, you were totally shocked the first time you saw on your income tax return what you owe in self-employment tax. “What is that huge amount?” you asked. You were answered,
What is Form 1065? The IRS name for this form is “U.S. Return of Partnership Income.” This is an information return for partnerships to report the income, gains, losses, deductions, credits, etc. of the business. The partnership itself does not pay tax on its income. Instead, the profits or losses are “passed through”
What is Form 1099-Misc? This is the form that a business fills out for any freelancers or independent contractors that it hired. Copies of the form are sent to both the IRS and the contractor. Who must file Form 1099-Misc? If you paid freelancers or independent contractors a total of $600 or more
Small business owners know that every penny counts when paying taxes. The difference between a high and low tax burden can significantly impact a small business’s likelihood of survival. That is why picking the right city to base a business operation is important for entrepreneurial success. From small cities to major ones, certain