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Category Archives: Small Business

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How Can You Save a Business After the Owner Dies?

Lake Wylie Tax Service | Bookkeeping | Payroll Service Posted on July 27, 2021 by Lake Wylie Tax Services StaffJuly 27, 2021

How to Save a Business when the Owner DiesWhen you’re in the midst of building or growing a business, the last thing on your mind is what happens if the owner suddenly dies.

If the business was established as a partnership and the surviving partner has equity in the business, then a buy-sell agreement can provide a quick solution, particularly if there is an insurance policy that’s been set up specifically to facilitate the buyout. Those who worked with an experienced attorney or accountant when setting the business up generally have the good fortune of having a plan in place whether there’s a partnership or not, but that is not always the case.

The absence of the driving force behind a business affects employees, customers, and the family members who may have relied on the organization for income. If you find yourself in this unfortunate situation, you need to know the steps available, and how best to approach the many issues that will arise.

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Posted in Small Business | Tagged Business Life Events

Here’s What Happened in the World of Small Business in April 2021

Lake Wylie Tax Service | Bookkeeping | Payroll Service Posted on April 27, 2021 by Lake Wylie Tax Services StaffApril 27, 2021

Small Business in current eventsIn this small business breakdown, we discuss important current events that are affecting small businesses across the United States in April.Why this is important for your business:
This finding has added fuel to the conversation around corporate taxation – or a lack thereof – in the US. Keep an eye on the public discourse and any moves made by politicians to speak on this topic in the coming months.

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Posted in For Business, Small Business | Tagged Newsworthy

Big Increase in Child Tax Credit For 2021

Lake Wylie Tax Service | Bookkeeping | Payroll Service Posted on March 16, 2021 by Lake Wylie Tax Services StaffMarch 16, 2021

Child Tax Credit IncreasedAn increased child tax credit is part of President Biden’s stimulus package to help tackle the coronavirus pandemic and stimulate the economy. This stimulus package, which was passed by Congress on March 10, 2021, and is known as the American Rescue Plan Act, will provide lower-income parents with substantial financial assistance and support various other efforts to stimulate the economy. Even though the benefit of a tax credit traditionally isn’t available until after the tax return for the year has been filed, for 2021, the IRS will pay a portion of the credit in advance in the form of monthly payments from July through December.

Here we cover the details in this week’s blog:

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Posted in Small Business

New Business? Tax Issues to Consider

Lake Wylie Tax Service | Bookkeeping | Payroll Service Posted on November 18, 2020 by Lake Wylie Tax Services StaffNovember 18, 2020

Tax Implications of Starting a New BusinessIn spite of COVID-19 restrictions many entrepreneurs are considering possible new or additional business opportunities. So, if you are planning a new business start-up and are incurring some expenses, you probably anticipate deducting those expenses in the first year of the business’s operation. Unfortunately, it is a little more complicated than that. Expenses a business incurs in the beginning can include equipment purchases, vehicle purchases and use, leasehold improvements, organizational costs and start-up expenses, and each receives a different tax treatment.

Even before you begin incurring expenses for equipment, leases and the like, you must decide what type of business entity you are going to establish. The type of business entity you choose will determine which tax form has to be filed. The most common types of business entities are the sole proprietorship, partnership, corporation, and S corporation, some of which may also be structured as a limited liability company. The choice of entity will affect the tax outcome of your business for years to come.

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Posted in For Business, Small Business | Tagged Growing Your Business, Tax Planning

Big Tax Breaks for Hiring Your Children in the Family Business

Lake Wylie Tax Service | Bookkeeping | Payroll Service Posted on July 17, 2020 by Lake Wylie Tax Services StaffJuly 17, 2020

Big Tax Breaks for Hiring your childrenWith jobs at a premium during the COVID-19 pandemic, you might consider hiring your children to help out in your business. Financially, it makes more sense to keep the family employed rather than hiring strangers, provided, of course, that the family member is suitable for the job. Note, however, that wages paid to children and other relatives aren’t eligible for the Employee Retention Credit created by Congress in 2020 as part of the COVID-19 emergency relief measures for employers.

Rather than helping to support your children with your after-tax dollars, you can instead hire them in your business and pay them with tax-deductible dollars. Of course, the employment must be legitimate and the pay commensurate with the hours and the job worked. The following are typical situations encountered when hiring family members.

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Posted in For Business, Small Business, Small Business Taxes | Tagged Covid-19, Employee

Loan Application Period for the Paycheck Protection Program Extended

Lake Wylie Tax Service | Bookkeeping | Payroll Service Posted on July 7, 2020 by Lake Wylie Tax Services StaffJuly 7, 2020

Paycheck Protection ProgramIf you missed the opportunity to apply for a Paycheck Protection Program (PPP) loan before the program expired at the end of June, you have another chance. Congress has overwhelmingly voted to extend the application period for a PPP loan through August 8, 2020, giving you an additional 5½ weeks to apply.

If you are unfamiliar with this program, Congress created the PPP as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and authorized the use of the SBA’s small business lending program to provide forgivable loans of up to $10 million per qualifying business. The loans are to support small businesses in dealing with the economic hardships created by the coronavirus pandemic and primarily to assist them with continuing to pay employee salaries.

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Posted in For Business, Small Business | Tagged Covid-19

Paycheck Protection Program and Health Care Enhancement Act: What’s In It?

Lake Wylie Tax Service | Bookkeeping | Payroll Service Posted on April 23, 2020 by Lake Wylie Tax Services StaffApril 23, 2020

Payroll-Protection-ProgramAs of Tuesday, April 21st, the Senate has passed the Paycheck Protection Program and Health Care Enhancement Act (PPP & HCE Act), a $484 billion package which will now go to the House of Representatives for consideration. It is anticipated that this bill could pass the House as early as Thursday, and President Trump is expected to sign it into law soon after.

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Posted in Small Business, Tax Central | Tagged Covid-19

Crowdfunding Can Have Unexpected Consequences

Lake Wylie Tax Service | Bookkeeping | Payroll Service Posted on October 15, 2019 by Lake Wylie Tax Services StaffJanuary 23, 2020

crowdfundingRaising money through Internet crowdfunding sites prompts questions about the taxability of the money raised. A number of sites host money-raising projects for fees ranging from 5 to 9%, including GoFundMe, Kickstarter, and Indiegogo. Each site specifies its own charges, limitations, and withdrawal processes. Whether the money raised is taxable depends upon the purpose of the fundraising campaign.

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Posted in For Business, Small Business, Tax Central | Tagged Tax Planning

Don’t Overlook These Essential Small Business Tax Credits

Lake Wylie Tax Service | Bookkeeping | Payroll Service Posted on October 15, 2019 by Lake Wylie Tax Services StaffJanuary 23, 2020

Essential Small Business Tax CreditsAt their core, tax credits are a very particular type of benefit designed to offset the actual tax liability associated with SMBs around the country. This isn’t the same thing as a tax deduction, which lowers that business’s actual income. Tax credits are typically offered to incentivize everything from hiring more workers in order to stimulate the economy to making meaningful contributions to specific industries.

While certain tax credits are obvious, others are decidedly less so. This is why proper tax planning is essential as a small business owner — you need to be proactive about getting every last penny that is owed to you. There are a number of essential small business tax credits in particular that you’ll definitely want to take advantage of when tax season rolls around.

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Posted in Small Business | Tagged Tax Credit

The Tax Filing Deadline Is Around the Corner

Lake Wylie Tax Service | Bookkeeping | Payroll Service Posted on March 27, 2019 by Lake Wylie Tax Services StaffJanuary 23, 2020
Tax Time - Tax Preparation

– Shutterstock

As a reminder to those who have not yet filed their 2018 tax returns, April 15, is the due date to either file a return (and pay the taxes owed) or file for an automatic six-month extension (and pay the an estimate of the taxes owed). Caution should be exercised when preparing the extension application, which is IRS Form 4868. Even though this form is described as “automatic,” the extension is automatically granted only if it includes a reasonable estimate of the 2018 tax liability and only if that anticipated liability is paid along with the extension voucher. It is not uncommon for taxpayers to enter zero as the estimated tax liability without figuring the actual estimated amount. These taxpayers risk the IRS classifying their forms as having been improperly completed, which in turn makes the extensions invalid. If you need an extension, please contact this office so that we can prepare a valid extension for you.

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Posted in Small Business

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