Small business owners can find it confusing and overwhelming when it comes to the details of business deductions. Deducting too many items can cause problems if your business is every audited and deducting too little takes money directly out of your pocket. Millions of business owners each year fall to the side of caution and do not take the deductions they are owed. [Read more »]
We have compiled our Top 10 most common mistakes that businesses make when trying to establish their business credit or corporate credit.
1. Trying to cut costs by using your home address for
your business address.
2. Using a P.O. box or mail drop location for your business address.
3. Not having a separate business phone number from your home phone; also not having a fax number. [Read more »]
April 15th is coming quickly. If you are not ready to submit your tax return the IRS does allow a six month extension. Here are four things you should know if you are planning on filing an extension.
1) File your tax return by April 15th even if you can not pay all of the taxes owed. If you need an extension because you can not pay all of your taxes then still file file. Do not request an extension. The IRS recommends for you to file your return on time and then pay as much as you can. This will reduce any penalty and interest charges for the amount you are able to pay. [Read more »]
Those looking to form an LLC in California can choose either to hire a professional who specializes in the formation of Limited Liability Companies and Corporations, or you might decide to save a little bit of money and form the LLC yourself. If you choose to do the work yourself we have listed here a few things steps to take.
Paying state taxes might seem a little tricky since each entity in California has different tax rates. Understanding the tax rates can also help you decide if you want to Incorporate, setup an LLC, or set up a Partnership. Currently the LLC is taxed with a $800 per year and a world-wide gross receipts tax based on a current tax table. The C Corporation has a 8.84% net profits tax and the S Corporation has a 1.5% net profits tax. [Read more »]
The Paydex score system with Dun and Bradstreet goes from 0 to 100. Although your Paydex score is not as important as your DnB rating your business, it is a very important start to building your business credit.
To receive an 80 Paydex score your business much have at least three vendors that report to DnB that you have paid your bill on time. Although this seems very easy since most businesses have far more than three vendors they deal with. The tricky part is finding three of your vendors that will actually take the time to report to DnB. [Read more »]
Starting with the 2011 tax year, all payment providers were to issue the 1099-K forms to businesses and to the IRS. The 1099-K forms indicated gross sales processed through the payment provider.
Under this new IRS rule online electronic payment processors (such as PayPal & Amazon) as well as any credit card provider were required to submit a 1099-K for every seller that processed more than 200 transaction in a year and totaled at least $20,000.
With the 2012 tax year being the second year of the new tax law taking affect, the IRS is expected to look very closely as online sellers of all sizes for any discrepancies in gross sales figures. [Read more »]
Small business owners have many aspects of their business to oversee and manage every day. Many ignore or don’t think about their business credit score, making the mistake of thinking it is not important. In reality your business credit score is a vital part of your business success and ability to expand your business down the road.
This is the perfect time to focus on your business credit score as the economy starts to recover. Banks are starting to ease on making small business loans and consumers are starting to spend more money.
The first thing you need to do is to check what your business credit report. Make it a habit to check it once or twice a year. You should schedule this, just as you would schedule your taxes and other business reports. [Read more »]
The economy is still in constraint and the CPA firms are supposed to go through a flat season throughout 2012. There aren’t going to be any positive or negative outlook for the majority of the firms, as per reports. But, the question is what after this? What about the debts that these small businesses may have incurred till now. Paying off the debts incurred is perhaps the toughest part for one and all – may it be a person or a small business. However, the only good news for the small business owners is that the SBA 504 debt refinance rules have been revised, thereby making the refinance process easier for the businesses and the firms. [Read more »]
Large businesses have more complicated systems of functioning than smaller ones, so the process of growing is riskier. As an establishment grows, managers could lose a significant amount of control as they try to deal with the larger number of issues. Many companies set up detailed growth-control plans in order to deal with this troublesome situation. [Read more »]
New wireless credit card processing devices and services are making it easier for mobile businesses to quickly accept payments. Mobile payment terminals are becoming more common, and the number of available devices and services available can make a decision difficult. [Read more »]
Survival Guide for Small Business