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Six Tips for Starting Your Own Business

Posted on October 4th, 2020

Starting your own business can be an exciting prospect, but there is more to it than simply writing a business plan. Also, if you expect to have employees, there are a variety of federal and state forms and applications that you need to complete to get your business up and running. That’s where a tax professional can help. With this in mind, let’s take a look at what you need to know before you start a new business. Read More…

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Choosing a Business Entity

Posted on October 2nd, 2020

When you decide to start a business, one of the most important decisions you’ll need to make is choosing a business entity. It’s a decision that impacts many things—from the amount of taxes you pay to how much paperwork you have to deal with and what type of personal liability you face, and with the passage of the Tax Cuts and Jobs Act of 2017, it’s more important than ever to choose the business entity that benefits your business.

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Should my business be an S corp

Ask Bob: Should My Business Be an S Corporation? 6 Myths and Facts

Posted on September 25th, 2020

CPA Robert Russo Breaks Down the Question: Should My Business Be an S Corp?

Ever since the Tax Cuts and Jobs Act was signed into law in late 2017, the team at Robert P. Russo, CPA has been getting questions about which business entity will allow them to best take advantage of the law. One question that keeps coming up is: should my business be an S corp? We get this question from LLCs and sole proprietorships – even employees wondering if now’s the time to launch that startup.

The answer to “should my business be an S corp”? It depends. There are benefits to becoming an S corporation (taking a distribution of dividends exempt from self-employment tax). But there are also pitfalls – if you don’t follow S corp requirements (take too large a distribution, and you could hear from the IRS).

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Exiting a Business: Which Option Is Right for You?

Posted on August 4th, 2020

Selecting your business successor is a fundamental objective when planning your exit strategy and requires a careful assessment of what you want from the sale of your business and who can best give it to you.

There are only four ways to leave your business and the more you understand about each one, the better the chance is that you will leave your business on your terms and under the conditions you want. With that in mind, here’s what you need to know about each option: Read More…

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small business financing

Small Business Financing: Securing a Small Business Loan

Posted on July 5th, 2020

At some point, most small business owners will visit a bank or other lending institution to borrow money. Understanding what your bank wants, and how to properly approach them, can mean the difference between getting a loan for expansion or scrambling to find cash from other sources.

Unfortunately, many business owners fall victim to several common, but potentially destructive myths regarding financing, such as: Read More…

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Ask Bob: Should I Hire an Accountant or Do Taxes Myself? (7 FAQs)

Posted on June 9th, 2020

The big question: Is hiring an accountant to do my tax return really worth it?

At this time of year, we’re all bombarded with ads promoting the simplicity and savings of using online tax software or walk-in tax prep centers. For people with a simple W2 form and maybe an investment account or two, these services will get the job done.

However, there are many situations where hiring an accountant can save you thousands of dollars, help you avoid an audit and fines, and set you up for an even more profitable year ahead. The question is: which category do you fall into?

In our latest edition of “Ask Bob,” we answer frequently asked questions about whether it’s really necessary to hire an accountant, or if you can go it alone. Here’s what Bob had to say… Read More…

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4 Cash Management Tips for Small Businesses

Posted on June 4th, 2020

Cash is the lifeblood of any small business. Here are some tips to help your business maintain a sufficient cash flow to meet its financial goals and run efficiently: Read More…

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preparing an effective business plan

How to Prepare an Effective Business Plan

Posted on June 2nd, 2020

A business plan is a valuable tool whether you’re seeking additional financing for an existing business, starting a new company, or analyzing a new market. Think of it as your blueprint for success. Not only will it clarify your business vision and goals, but it will also force you to gain a thorough understanding of how resources (financial and human) will be used to carry out that vision and goals. Read More…

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Small Business: Tax Consequences of Crowdfunding

Posted on May 3rd, 2020

With the onset of the coronavirus pandemic, crowdfunding websites such as Kickstarter and GoFundMe have become an increasingly popular way for small business owners to stay afloat. The upside is that it’s often possible to raise the cash you need; the downside is that the IRS considers that money taxable income. Let’s take a closer look at how crowdfunding works and how it could affect your tax situation. Read More…

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Reminder: Use Correct Forms to Pay Employment Taxes

Posted on January 5th, 2020

Small business owners are reminded to review the rules for filing two commonly-used employment tax returns: Form 944, Employer’s Annual Federal Tax Return and Form 941, Employer’s Quarterly Federal Tax Return.

A small business files one or the other; these two forms are not interchangeable and the employer should never flip-flop between the two forms on their own. They should always file in accordance with their designated filing requirements. Let’s take a look at the differences between these forms. Read More…

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Starting a Home-Based Business

Posted on January 2nd, 2020

More than half of all businesses today are home-based. Every day, people are striking out and achieving economic and creative independence by turning their skills into dollars. Garages, basements, and attics are being transformed into the corporate headquarters of the newest entrepreneurs – home-based business people.

And, with technological advances in smartphones, tablets, and iPads as well as rising demand for “service-oriented” businesses, the opportunities seem to be endless. Read More…

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Business Tax Provisions: The Year in Review

Posted on December 4th, 2019

Here’s what business owners need to know about tax changes for 2019. Read More…

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2019 Year-End Tax Planning Strategies for Businesses

Posted on November 3rd, 2019

There are several end-of-year tax planning strategies that businesses can use to reduce their tax burden for 2019. Here are a few of them: Read More…

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Seasonal Workers and the Healthcare Law

Posted on November 2nd, 2019

Businesses often need to hire workers on a seasonal or part-time basis. For example, some businesses may need seasonal help for holidays, harvest seasons, commercial fishing, or sporting events. Whether you are getting paid or paying someone else, questions often arise over whether these seasonal workers affect employers with regard to the Affordable Care Act (ACA). Read More…

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Tax Advantages of S-Corporations

Posted on October 4th, 2019

As a small business owner, figuring out which form of business structure to use when you started was one of the most important decisions you had to make; however, it’s always a good idea to periodically revisit that decision as your business grows. For example, as a sole proprietor, you must pay a self-employment tax rate of 15% in addition to your individual tax rate; however, if you were to revise your business structure to become a corporation and elect S-Corporation status you could take advantage of a lower tax rate. Read More…

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