Filing taxes on the 1099 kicked me in the coins again.
After finally buying my first house, it turns out I can’t write off the interest.
I need to form a corporation with myself as the sole employee for now. Can anyone recommend the best way for me to incorporate? Should I hire a lawyer or what?
Any input is appreciated.
Replies
Obviously there are a number of factors on both sides of the argument, but my recommendation is to start with an accountant (if you don't already have one). They will be able to recommend a good attorney to handle the paperwork.
I would focus on finding the best accountant, because you're only going to need the lawyer on the rare occasion: filing documents, etc. The accountant will be able help you with tax issues, business financials, and much more on an ongoing basis.
As a sidenote, I am a CPA and I pay to have my taxes done every year. I haven't studied tax rules since I passed the exam, and I'm not about to start now.
I incorporated as an LLC last year--mostly for tax benes after selling our owner occupied duplex with a lot of capital gain last year.
This was at the advice of my accountant, who with only weeks left in the year, hooked me up with her favorite lawyer who filed my papers and had me on the state's books in less than 10 days.
This cost about 300$ total.
LLC seems to be a good way to go for me (Have yet to file taxes as incorporated) because as a single member LLC the corporation's income is taxed on my personal return. No separate filing or taxation for the LLC, so I get it.. And there is some legal benefit for liability.
Pat
Waters, I don't want to sound like a nitpicker, but I think you should know that you are improperly intetwining some terms. I'm only pointing this out so that lurkers won't take the erroneous information and run with it.
LLC = Limited Liability Company.
LLCs are not corporations. You can't have any "corporation" income because you don't have a corporation.
You are correct that the income (or loss) generated from your LLC does in fact flow through to you untaxed.
blue
Mmn...
At least I have the gist of it then.
I confused incorporation vs company--filing articles of organization vs incorporation, with my State--OR.
Good I have the Accountant and the Lawyer.
No Nitpicking taken,
Thx, Blue,
Waters
Depends on the State you live in -- some you definitely want to be LLC, others it won't matter.
Get a local lawyer to answer the question and guide you through the process.
llc and s corp can be very similar for tax purposes, with flow through taxation similar to a partnership. the entity does not pay tax, but the shareholder, member or partner, as the case may be, reports his or her share of the entity net profit. some states allow single member llc's, but i think some still require at least two members. i think all states allow single shareholder corporations, and you can elect s status for taxation.
the real difference for a single member entity is the ease of management. a corporation is represented by officers, who are empowered by the board of directors, who are elected by the shareholders. even if all those are the same person, you still have to follow certain formalities in order to do business (resolutions of the board of directors)
conversely, in louisiana, i can set up an llc by filing articles of organization. in those, i can say "pigsooie is the manager, and has all authority to transact business for the Pigsooie and co, llc, and anyone dealing with pigsooie is entitled to rely on these articles as his authority to bind the llc" or something similar with more expensive words, and never have to do any kind of resolution or formality.
another benefit in louisiana is that llc's don't have to file a state tax return or pay franchise taxes.
the vast majority of new entities established in louisiana are llc's. i havent done a corporation in at least 10 years.
are you good at keeping records?i'm no good at it,i inc. one time and it was the worst thing i ever did,what a book keeping nightmare. finally shot it in the head and went back to sole propriertor.one other thing everybody talks about liabilty issues.if you don't run this thing perfectly any lawyer 15 mins out of school can bust your.corpration. it's so easy to just grab a hundred from the corp. to go fishing,guess what you just broke the corp seal.see ya in court........ as you can tell i won't be inc again soon.larry
hand me the chainsaw, i need to trim the casing just a hair.
Can you write off your mortgage interest as sole proprietor?
Mainly I need a good way to reduce taxable income. So I thought of squirreling myself into employeeship and paying full FICA, comp, Social. Also company health insurance.
Whaddayathink?
I have an S corp. Allows me to be an employee and carry comp, FICA etc. Also makes it easy to expand with employees and all if that is your goal. But it does vary as others have said state to state. Make an appointment with a decent accountant. Pay him a hundred bucks to talk it over and find out what are your options in your area. Everyones goals are different and your plan should be tailored to your goals.
I also hate bookwork and record keeping so I have had an accountant since day 1 with my business. I believe strongly in the idea you should hire the things you hate so you can focus on what you are good at/love. I like making money. I just don't care what happens to it after that. Having someone to put it in the proper places keeps me up to date with the IRS etc. so I don't have the late night bill coding issues. Just my take. Yours may vary. DanT
IF YOU HAVE NOT FILED YOU TAXES THEN FILE FOR THE AUTOMATIC EXTENSION, INCLUDING ANY MONEY DUE.THEY SEE A TAX PRO. (edit)"Can you write off your mortgage interest as sole proprietor?"If you are talking about home mortgage insurance it makes no difference how or where the money comes from. Gifts, robbing a band, trust funds, SP, corp employee, corp dividends.If you where not able to deduct it last year it is only because you did not have enough deductions to overcome the standard deduction. Probably because you bought late in the year. And what about the taxes, real estate, personal property taxes, and state local income or sales taxes. Note on real estate property taxes you need to prorate them for the part of the year that you owned the property. You need to check you closing statement. Depending on the state you either pay in arears in which the amount that you paid at the end of the year is reduced by the allowance from the closing statement. Or you pay in advance in which case you did not pay anything and the end of the year, but you did reimbusre the seller for part of the taxes. That amount is deductable.Also points are either deductable in the year of the mortgage, in full. Or if you only got the standard deduction for last year then you can prorate the points over the life of the mortgage."Mainly I need a good way to reduce taxable income. So I thought of squirreling myself into employeeship and paying full FICA, comp, Social. Also company health insurance."Actually SS is the same in either case. For an employee 7.65% is deducted from you pay check and the employer also pays 7,65%This is a litte confusing. Even the instructor for the tax course that I took last year did not understand reasoning behind it. And of course the IRS did not impliment it in a user friendly way. But it is simple math. SP pay the same amount.The SP net profit pays the "salary" PLUS and additiona amount for the EMPLOYERS part of the SS payments.To do this the rate on SE forum is a little less (13 somethign percent) and 1/2 of the calculated payments are a front page adjustment to income.And for SP medical insurance is 100% front page adjustment to income.You need to see a tax pro. Not a store front tax prep, but some one that does accounting/bookkeeping year around, preferably an enrolled agent or cpa.Wait about a 4-6 weeks for them to recover from tax season.Then take this years return along with all of your paper work.Not only review what you did last years taxes, and don't be surprised to end up filing an admended return.But also to review what are deductable business expenses and what are not and what records that you need to keep.And the advantages and disadantage, tax wise of file as a corp or sp.
Edited 4/14/2006 10:06 am by BillHartmann
Mainly I need a good way to reduce taxable income
Realistically, there are only two ways to fo that. Either report less, or earn less.
"Reporting less" is fraught with all sorts of risks far greater than the immediate gain.
"Making less" can be tougher still. Ok, so you form a business entity of some kind, which "costs" something, and therefore you "make" less, right? Nope. The business entity also has to report income, and pay taxes, etc., similarly to the way you have to. Like it or not, the university seems to insist on mass, energy, and taxes all being conserved.
That does not mean you have no options, just that your options for 2005 are limited.
For 2006, you have more choices. For one, you can open an IRA this year. All of your 'regular' IRA contributions are deductable up to around $4000 or so (varying by filing status). You can make contributions to IRAs for more than the 12 months of a calendar year, too (with some limits). (Mostly, where that helps is if you "borrow" from an IRA to create liquidity, you get until the next 15 April to pay that "back"--but that's a very much last-resort sort of step to take.)
Now, certain kinds of business entities can fund differing kinds of retirement funds for the employees. These can have a number of tax advantages for the business entity. For some limited liability busniess entities this means being able to "contribute" pre-tax income to retirement and medical funds. That can be a very good thing. Ok, you, as the employee, still have to 'live' on what's left over in the paycheck, but, by using pre-tax dollars, those funds get 10-15% "more" than the dollars put in. Ok, you don't see that on payday, but the net gain is still there.
Many, many choices.Occupational hazard of my occupation not being around (sorry Bubba)
"Realistically, there are only two ways to fo that. Either report less, or earn less."There is a 3rd leg and increasing deductions. And based on his comments I suspect that he does not have an understanding of what is and is not deductable."For 2006, you have more choices. For one, you can open an IRA this year. All of your 'regular' IRA contributions are deductable up to around $4000 or so (varying by filing status)."Filling status has nothing to do with IRA limits. But age does (over 55?) and take another $500. But what does limit the amount of deductable IRA contribution is AGI and IF YOU ALSO have CONTRIBUTED to a qualified retirment plan." You can make contributions to IRAs for more than the 12 months of a calendar year, too (with some limits). (Mostly, where that helps is if you "borrow" from an IRA to create liquidity, you get until the next 15 April to pay that "back"--but that's a very much last-resort sort of step to take.)"?????????????????I am not sure what you are talking about. But there are a couple of things. Yes you have to April 15 to contribute for last year. So you have the option of when to pay and if you have a windfall you could say pay both 2006 and 2005 this year. But over the long haul you are limited to the (current) $4000/year.And you can "borrow" from the IRA, but that is limited to 60 days (also a limit on the number of times that you can do it) or else you pay both current taxes and a 10% penalty tax."Now, certain kinds of business entities can fund differing kinds of retirement funds for the employees. These can have a number of tax advantages for the business entity. For some limited liability busniess entities this means being able to "contribute" pre-tax income to retirement and medical funds."Basically the same for SP. You have SEP-IRA (which have nothing to do with an IRA even though it has the same name) and SE401k (aka sole 401k). IIRC the you have to have setup the SE401k last year, but you have until the file date, INCLUDING EXTENSIONS, to set the SEP-IRA. I do know that you have until that date to fund it.And medical insurance is a front page adjustment, just like the IRA, SEP, adn SE401k. All pre taxed.A cafeteria plan and medical re-imbursement plans are about the only things that you don't have with SP. And even they can be done if your spouse is a liget employee and your benifit plans include spousal benfits. But that is complicated and will get real expensive if you have another employess.
Pigsooie,
I have my company as an LLC. Here in Texas we do have to pay a franchise tax.
The advantages I found have been the deductions that I can have.
I currently have a room dedicated as the office. Also my garage houses the company tools and shop ,no autos could fit in there if I tried so it is used solely for the business. These allow me to deduct the % sq footage of the total house against the operating costs of the house. So if they represent 10%, then 10% of all of my utilities, any losses, or upgrades become deductions ( some have to be amortized over time). Check with a good CPA as they will be able to show you the advantages. I see the costs of my CPA as just another tax deduction. the $750.00 he charges me has changed my tax liabilty so that in the past few years I have seen a refund vs owe. Something I haven't seen in 20 yrs due to my ignorance in reading the tax codes and being able to apply them to my circumstances.
Again I cannot stress the importance though of a could CPA or Tax accountant.
Hope this helps.
Mike K
"Icurrently have a room dedicated as the office. Also my garage houses the company tools and shop ,no autos could fit in there if I tried so it is used solely for the business. These allow me to deduct the % sq footage of the total house against the operating costs of the house. So if they represent 10%, then 10% of all of my utilities, any losses, or upgrades become deductions ( some have to be amortized over time)."Same for a SP.
one problem with writing off expenses of home office,say you write off 25% of taxes,interest,insurance. nice deduction. now 10 years later you close your bussiness, sell your house ,make 200 grand in appreciation,go on a cruise. when you get back instead of those profits being 100% tax free,25% are counted as capitol gains and you pay tax on it.now if your property is going down in value,take the deduction . been there,done that ,not fun larryhand me the chainsaw, i need to trim the casing just a hair.
I believe you are wrong.I believe the IRS has a pub on the matter. A home office does not require "recapture."In any case a tax professional can provide a more reliable answer.
my tax pro says you're wrong
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As I said1) the IRS has a pub for home offices and such.2) a tax professional will give a better answer than we will.
For this all of the informaion is in Pub 523 Sale of a Home.There is a separate pub for Office in the Home. I have not been through that recently, but just when through the ones rentals and sale of business properties for a similar, but different situation of part rental, part partial persional usage. And all of the info about the sale was in Pub 523.
Hey Pig, I S incorporated in 2000 in NC, and it's saved me a bundle on taxes. Went through a CPA ($500), who shunted me to a lawyer ($750). Lot more paper work, but now I kinda know what's happening with my business<G> No more end of the year nuttiness, almost worth it in itself...Now, Mrs 'Snort did the incorporation thing herself, 135 beans, took about 3 or 4 months, and she just copies my stuff...I need to find a category for that<G> I need a dump truck, baby, to unload my head
I believe you are wrong.Perhaps you should consult a tax professional also.
Wrong about what?Pub 523 is the one on selling a house.http://www.irs.gov/pub/irs-pdf/p523.pdfhttp://www.irs.gov/publications/p523/index.htmlAnd here are some examples."Example 1.On May 29, 1999, Amy bought a house. She moved in on that date and lived in it until May 31, 2001, when she moved out of the house and put it up for rent. The house was rented from June 1, 2001, to March 31, 2003. Amy moved back into the house on April 1, 2003, and lived there until she sold it on January 30, 2005. During the 5-year period ending on the date of the sale (January 31, 2000 – January 30, 2005), Amy owned and lived in the house for more than 2 years as shown in the following table.
Five-Year Period Used as Home Used as Rental
1/31/00 – 5/31/01 16 months
6/01/01 – 3/31/03 22 months
4/01/03 – 1/30/05 22 months
38 months 22 months
Amy can exclude gain up to $250,000. However, she generally cannot exclude the part of the gain equal to the depreciation she claimed or could have claimed for renting the house, as explained after""Example. Dan sold his main home in 2005 at a $10,000 gain. He meets the ownership and use tests to exclude the gain from his income. However, he used one room of the home for business in 2004 and has records showing he claimed $1,000 depreciation. He can exclude $9,000 ($10,000 – $1,000) of his gain. He has a taxable gain of $1,000.Example. Dan sold his main home in 2005 at a $10,000 gain. He meets the ownership and use tests to exclude the gain from his income. However, he used one room of the home for business in 2004 and has records showing he claimed $1,000 depreciation. He can exclude $9,000 ($10,000 – $1,000) of his gain. He has a taxable gain of $1,000.""Property Used Partly for Business or RentalIf you use property partly as a home and partly for business or to produce rental income, the treatment of any gain on the sale depends partly on whether the business or rental part of the property is part of your home or separate from it.
Part of Home Used for Business or RentalIf the part of your property used for business or to produce rental income is within your home, such as a room used as a home office for a business, you do not need to allocate the basis of the property and the amount realized between the business part of the property and the part used as a home. In addition, you do not need to report the sale of the business or rental part on Form 4797. This is true whether or not you were entitled to claim any depreciation. However, you cannot exclude the part of any gain equal to any depreciation allowed or allowable after May 6, 1997. See Depreciation after May 6, 1997 earlier.Example 1.Ray sold his main home in 2005 at a $30,000 gain. He meets the ownership and use tests to exclude the gain from his income. However, he used part of the home as a business office in 2004 and claimed $500 depreciation. Because the business office was part of his home (not separate from it), he does not have to allocate the basis and amount realized between the business part of the property and the part used as a home. In addition, he does not have to report any part of the gain on Form 4797. He reports his gain, exclusion, and taxable gain of $500 on Schedule D (Form 1040).Example 2.The facts are the same as in Example 1 except that Ray was not entitled to claim depreciation for the business use of his home. Since Ray did not claim any depreciation, he can exclude the entire $30,000 gain""Separate Part of Property Used for Business or RentalYou may have used part of your property as your home and a separate part of it for business or to produce rental income. Examples are: * A working farm on which your house was located,
* An apartment building in which you lived in one unit and rented the others, or
* A store building with an upstairs apartment in which you lived.Use test not met for business part. You cannot exclude gain on the separate part of your property used for business or to produce rental income unless you owned and lived in that part of your property for at least 2 years during the 5-year period ending on the date of the sale. If you do not meet the use test for the business or rental part of the property, you must allocate the basis of the property and the amount realized upon its sale between the business or rental part and the part used as a home. See Example 5, later, for an example of how to do this. You must report the sale of the business or rental part on Form 4797.Example 3.In 2001, Lew bought property that consisted of a house and a stable. He used the house as his main home and used the stable in his business for the next 4 years. He sold the entire property in 2005 at a $10,000 gain. Lew met the ownership and use tests for the house but did not meet the use test for the stable. Lew must allocate the basis of the property and the amount realized between the part of the property he used for his home and the part he used for his business, since the business part was separate from his home. Lew must report the gain on the business part of his property on Form 4797. He can exclude the gain on the part of the property that was his main home.Example 4.In 2000, Mary bought property that consisted of a house and a barn. Mary used the house as her main home and used the barn in her antiques business. In 2004, Mary moved out of the house and rented it to tenants. She claimed depreciation on the house while renting it in 2004 and 2005. She continued to use the barn in her business. Mary sold the entire property in 2005 for a $21,000 gain. Mary must allocate the basis of the property and amount realized between the home and business parts of the property since the barn is separate from her home. She must report the entire gain from the barn on Form 4797 since she did not meet the use test for the barn. She must also report gain on the home to the extent of the depreciation she claimed for the rental.
Use test met for business part (business use in year of sale). If you used a separate part of your property for business or to produce rental income in the year of sale, you should treat the sale of the property as the sale of two properties, even if you met the use test for the business or rental part. You must report the sale of the business or rental part on Form 4797. To determine the amounts to report on Form 4797, you must divide your selling price, selling expenses, and basis between the part of the property used for business or rental and the separate part used as your home. In the same way, if you qualify to exclude any of the gain on the business or rental part of your property, also divide your maximum exclusion between that part of the property and the separate part used as your home. If you want to use Worksheet 2 (shown earlier) to figure your exclusion and taxable gain from each part, fill out a separate Worksheet 2 (Part 2) for each."
Little ambiguity there. Thank you. I, too, was behind the times. Was once burned by depreciation recapture, twice wary.
As always, only after-tax considerations apply. Your timing is excellent for us. Finalizing our filing today and planning '06 strategy. PAHS Designer/Builder- Bury it!
BillHartmann ---Perhaps you should see a tax professional.I will not give you free tax advice.
I was not asking for tax advice.I was only quoting IRS pubs.
It might not be worth it, even at that price
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You wrote: "Wrong about what?"That does seem to be asking for free tax advice.As for your quoting of Pub 523. Long quotes tend to show that people don't know what they are talking about.
"You wrote: "Wrong about what?"That does seem to be asking for free tax advice.You wrote: "Wrong about what?"That does seem to be asking for free tax advice."No I was not asking for tax advice.I was asking what was wrong with message #29 where I wrote."For this all of the informaion is in Pub 523 Sale of a Home.There is a separate pub for Office in the Home. I have not been through that recently, but just when through the ones rentals and sale of business properties for a similar, but different situation of part rental, part partial persional usage. And all of the info about the sale was in Pub 523."And you resonded "I believe you are wrong."first of all my satement is not tax advice any more than a reminder that taxes are due April 15 or the next buiness day if that is a weekend of holiday.Now message #29 was a fairly generic message. In formation about taxes on the sale of a house is in IRS Pub 523.And secondly there are different ways that the sale is taxed when the property is partially used for business and partially for personal. And that difference is determined by whether the business use was within the home or a seperate structure.Two very generic states about taxes. Not advice given, nor adviced asked for. Just enough information that some one could say "well that affects me I need to learn more about it". Now your responed that I was wrong.And again I asked wrong about what? So that anyone could understand it I will clarify it. Not what is wrong about how to file out a tax form because we did not even mention a tax form. So I will make it very detailed.What is wrong about my statment that Pub 523 contains information about taxing the sale of HOME? Does Pub 523 discuss that or not? YES or NO?And what is wrong about my statement that when there is mixed business us of residential property that the the sale is taxed differently depending on if the business usage was in a separate structure or not. Is that what Pub 523 indicate? YES or NO?All of that is available on the IRS web site. You can get it in either HTML form or download a PDF copy.Since you don't see to be able to do such a simple task I then quoted from Pub 523 that indicate what I said was correct.If you still don't beleive me I am uploading a copy of Pub523.Anyone that thinks my asking you what was wrong with my earlier comments as "asking for tax advice" could only be some that writes tax forms for a living.PS, FWIW, while I am far from a tax pro I did take 60 hr class on federal and state (MO & KS) last year and got a grade in the 90's. And the class did cover sale of a home, but not any with business usage other than a general "it will be partialy taxed".
Edited 4/17/2006 7:54 pm by BillHartmann
my deal was i had a shop in backyard,used the shop as bussiness use.house was 720 sf shop was 1000 sf. so i took the ratio of approx 60/40 for depriciation, taxes, intrest,etc. also did utilities but that didn't matter. when came time to sell my tax man figured 60% of the profit was on the bussiness use of property, and i had to pay cap gains on that portion. luckily this was back in the early 80's and the whole tax bill didn't amount to much more than a couple thousand,but i took it as a lesson. since then for no more deduction than i get for home shop/office i just write off the utilities and go on.maybe the rules have changed since then? larryhand me the chainsaw, i need to trim the casing just a hair.
Larry, your mistake was taking the depreciation of the home office-then you had to recapture it. That mistake is particularly bad now that you have such a lucrative exemption on your personal residence if you've lived in it for two years ($250k).
If you had only climed the deductions and left the depreciation alone, you wouldn't have had anything to recapture.
blue
"If you had only climed the deductions and left the depreciation alone, you wouldn't have had anything to recapture."WRONG.You have to take recapture on any deprication that CAN BE TAKEN WHETHER IT IS TAKEN OR NOT.
You have to take recapture on any deprication that CAN BE TAKEN WHETHER IT IS TAKEN OR NOT
On your personal residence?
blue
"You have to take recapture on any deprication that CAN BE TAKEN WHETHER IT IS TAKEN OR NOTOn your personal residence?"There is no deprication on PERSONAL USE of a residence.But if there is BUSINESS use of a personal residence then yes you have to for that portion used for business.That business usage can be office in the home, renting part of it (spare room) or renting it before or after living it it.And in all 3 cases you have to recapture allowed or allowable deprication for the buisness use and then can use the 250/500k exclusiion on any remaining capital gains if you meet the 2yr/5yr rules.Note - this all for business use IN the home.If there is separate structures or units with one building then the whole is proportioned between the personal usage and the business usages. The personal residenence portion is treated as pure personal usage, no recapture and 250/500k exclusion if qualified. The business portion is treated as pure buisnesss. that is depreciation recapture, then any remaining gains/losses are treated as capital gains/loses.
There is only about 10% truth in that.First you only recapture DEPRECIATION. NONE any of the other expense assoicationed with the office in the home (utilities, insurance, taxes, repairs and maintance).And depreciation is recaptured at 25% while you most likely was saving at a 28% rate and and you had use of that money for years. Still a winning proposition.Second there are different rules for mixed business and personal use depend on whether there is a separate structure or not.If there is no separate structure. And by definition of office in a home there is none or else it is not office in the home, there is no apportioning of the capital gains. You still have the full 250,000/500,000 exclusion.If there was a separate structure used for business purposes then the total capital gains has to be apportioned between the personal residential usage and the business usage. Only that portion of the gain due to the personal residential usage is excludable.
What Do I care, I'm going to die working my A$$ off anyways then it's my heirs problem."El planeamiento pobre en su parte no constituye una emergencia en mi parte"
Pigsooie ---
I agree with BillHartmann. You seem to be misunderstanding the tax laws.
My wife runs her CPA firm as a sole proprieter. No paperwork. We deduct 1/2 of the house for business. She employes me so that I can get company paid health insurance for my dependants saves FICA tax. We defer taxes by using HSAs and retirement accounts.
My business is an LLC for very technical reasons.
See a CPA today for an extension. Talk with them after busy season.
I should add that the LLC froms are usually 1 page of fill in the blanks. No reason to pay someone else to fill them out.
Edited 4/14/2006 5:49 pm by GHR
I'm in PA and I'm a sole prop turned LLC.
my one recomendation ... don't do it "online". I used a service touted by AmEx ... and was just left with a bunch of Q's no one could answer for me.
Had to ask my accountant to explain everything to me.
if I were to do it again ... I'd ask all three again ... laywer, accountant and insurance guy their advice as to LLC or Corp ... then ... I'd pay a lawyer the coupla hunderd bucks to get it done.
Jeff
Buck Construction
Artistry In Carpentry
Pittsburgh Pa
When I did mine, I got a lawyer, an accountant and a bookeeper ( all vetted by previous interviews and checking histories ) in the same room where we interviewed each other. They asked me about my business and where I wanted it to go and I asked them about various scenarios and options. We came away knowing that an S-Corp was right for me and how to do it, which date would begin the fiscal year, and most of the other basics, each having homework to pursue to get it up and running. Cost about $800 to seed it and maybe twelve hundred a year to maintain it. I do most of my basic bookeeping. It has saved somewhere between 12 and 20K in the last two years in taxes.Don't just talk to these experts at tax time. Do tax planning sessions 3-4 times a year
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"Do tax planning sessions 3-4 times a year"
I did a last minute accountant switch this year ... told him I'll be back in , in a coupla weeks ... let him decompress from tax season ... to make the battle plans for the current year.
Always good to plan ... then review ... as ya go.
Jeff Buck Construction
Artistry In Carpentry
Pittsburgh Pa
Piffin - I did the same thing as you but I included my insurance guy also. In less than 2 hours we had the business set up (LLC) and everyone was on the same page. It was interesting and very educational to hear the experts bouncing the different scenarios, pros & cons, back & forth.
A good CPA is invaluable. I meet with my CPA once a quarter, the lawyer and insurance guys once a year to review everything.
-Norm