Small business owners need to plan for the 2021 tax year, even though there's still significant uncertainty about the fate of the tax proposals currently being discussed by Congress. Are there any tax-smart, last-minute moves that could help lower your taxes this year? Here are five strategies for you to consider as you wrap up 2021.
Read MoreTags: Accounting, CPA, Value of Business, Company Worth, Market Conditions, Year-end tax planning, small business, tax planning
After years of declines, new business formation is on the rise, according to the most recent statistics from the U.S. Census Bureau. For individuals pursuing the dream of exercising their entrepreneurial muscles, they will face the same question, "Which business structure should I adopt?" Each option is presented in this post with its own set of pros and cons.
Read MoreTags: Accounting, CPA, C-Corporation, Limited Liability Company, Sole Proprietorship, Partnership, C-Corp, S-Corp, S-Corporation, LLC, Business Structure
Most business owners know the basics of the business valuation process. For example, you might know that there are three approaches to value: the cost, market and income approaches. You might even know some of the methods that fall under these approaches, including the...
Read MoreTags: Accounting, CPA, Business Valuation, Valuation Analyst, Regulatory Environment, Competition, Industry Outlook, Webinar, How Much is My Company Worth, Value of Business, Company Worth, Market Conditions
Payroll Protection Plan (PPP) loans were a lifeline for many small business owners during the worst of the pandemic-driven economic slowdown. In total, the Small Business Administration (SBA) approved nearly 12 million PPP loans, averaging $67,000.
The PPP program stopped accepting loan applications on May 31, 2021. However, you still may need to complete the requisite forms to ensure that your loan will be forgiven. You can't afford to miss the deadlines for filing this paperwork.
Read MoreTags: Accounting, PPP, CPA, Deadline, PPP Forgiveness
A man registers online for a fantasy football league, unaware of a shock ahead.
The site requires him to create a user ID and password, so he uses the one he always uses: his email address for his user ID and his birth date followed by his initials (lower-case) for his password. After registering, he logs in, pays the registration fee with a credit card, and starts playing.
Read MoreTags: Book review, Accounting, Cyber Attacks, CPA, Cyber Attack, Internet, Internet Security, Cyber Security
If you're eligible for advance child tax credit (CTC) payments provided by the American Rescue Plan Act, you might wonder if you should spend the extra cash. Some families are incurring extra child-care costs so the parents can return to work. But others don't have any imminent child-care-related expenditures to cover.
Rather than spend the money on a trip to Disneyland or new smartphones, you might want to invest in your child's future by starting or contributing to a tax-favored Section 529 college savings plan. Here's what you should know:
Read MoreTags: Accounting, COVID, CTC, Section 529, College Fund, American Rescue Plan Act
On July 16, 2021, California’s governor signed Assembly Bill 150 (AB 150). Among other things, this bill includes the “Small Business Relief Act”, which allows taxpayers to receive a credit for their share of state and local tax (SALT) deducted from the net income on their federal returns for their qualified business(es). This elective tax payment will be available from January 1, 2021 through January 1, 2026.
Read MoreTags: Accounting, COVID, IRS, California State Tax, Small business relief act, federal tax, Income tax
About the Child Tax Credit (CTC) and advance payments
Taxpayers are allowed a CTC for each qualifying child. The credit was temporarily expanded and made refundable for 2021 by the American Rescue Plan Act (ARPA). It phases out for taxpayers with adjusted gross incomes (AGIs) over certain thresholds.
Eligible families will receive up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and older.
Read MoreTags: Accounting, COVID, Child Tax Credit, CTC, IRS
Has the Government-mandated Covid shutdown brought your cash flow to a halt? Have you been able to operate, but still haven’t been able to get your revenues up to the level they were at before all the lockdown madness of 2020? Here's a brief overview of how the federal Employee Retention Credit (ERC) can get you up to $33,000 (per employee) in refundable federal tax credits through the end of 2021.
Read MoreTags: Accounting, COVID, Employment Tax, business, cash flow, Employee Retention Credit, payroll, ERC
Running a new business can be a daunting endeavor. As soon as you form a business, you'll face many important decisions, ranging from mundane to critical. While much of what you must learn comes through trial and error, other lessons can be learned by observing what other business owners have experienced. Here are seven tips to help you hit the ground running.
Tags: Accounting, cloud accounting, business, cash flow
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