Choosing the right business entity has many implications, including the amount of your tax bill. The most common business structures are sole proprietorships, partnerships, limited liability companies, C corporations and S corporations. In some cases, a business… Read More »Should you convert your business from a C to an S corporation?

Let’s say you plan to use a C corporation to operate a newly acquired business or you have an existing C corporation that needs more capital. You should know that the federal tax code treats corporate debt… Read More »The tax advantages of including debt in a C corporation capital structure

There are several financial and legal implications when adding a new partner to a partnership. Here’s an example to illustrate: You and your partners are planning to admit a new partner. The new partner will… Read More »Growing your business with a new partner: Here are some tax considerations

It’s not unusual for a partner to incur expenses related to the partnership’s business. This is especially likely to occur in service partnerships such as an architecture or law firm. For example, partners in service… Read More »When partners pay expenses related to the business

Businesses usually want to delay recognition of taxable income into future years and accelerate deductions into the current year. But when is it wise to do the opposite? And why would you want to? One… Read More »When businesses may want to take a contrary approach with income and deductions

If your business doesn’t already have a retirement plan, it might be a good time to take the plunge. Current retirement plan rules allow for significant tax-deductible contributions. For example, if you’re self-employed and set… Read More »Emil @ CPA-LA wrote – Don’t have a tax-favored retirement plan? Set one up now

If you operate a business, or you’re starting a new one, you know records of income and expenses need to be kept. Specifically, you should carefully record expenses to claim all the tax deductions to… Read More »Emil @ CPA-LA: Scrupulous records and legitimate business expenses are the key to less painful IRS audits

Here are some of the key tax-related deadlines that apply to businesses and other employers during the second quarter of 2024. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines… Read More »2024 Q2 tax calendar: Key deadlines for businesses and employers

Your business should generally maximize current year depreciation write-offs for newly acquired assets. Two federal tax breaks can be a big help in achieving this goal: first-year Section 179 depreciation deductions and first-year bonus depreciation deductions.… Read More »Coordinating Sec. 179 tax deductions with bonus depreciation

If your small business is strapped for cash (or likes to save money), you may find it beneficial to barter or trade for goods and services. Bartering isn’t new — it’s the oldest form of… Read More »Emil @ CPA-LA wrote: Bartering is a taxable transaction even if no cash is exchanged

The qualified business income (QBI) deduction is available to eligible businesses through 2025. After that, it’s scheduled to disappear. So if you’re eligible, you want to make the most of the deduction while it’s still… Read More »Emil @ CPA-LA wrote: Maximize the QBI deduction before it’s gone

The credit for increasing research activities, often referred to as the research and development (R&D) credit, is a valuable tax break available to certain eligible small businesses. Claiming the credit involves complex calculations, which we’ll… Read More »Better tax break when applying the research credit against payroll taxes