Entries by baybiz

The Benefits to small business owners of Outsourcing Bookkeeping and Payroll Services to an Accountant

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There are several advantageous reasons why  small business owners should consider outsourcing their bookkeeping and payroll services. Taxes are complicated and the IRS continually makes payroll more difficult each year. The following highlights several advantages to outsourcing accounting-related services to an accountant.  Time – By outsourcing standard bookkeeping and tax-related services, employees can spend more […]

Can a business grow too fast?

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Most businesses hope to grow. They consider themselves successful if growth is taking place, and the faster the growth the better. Can too much business growth be bad for a company? It can be if the growth is not adequately planned. For example, an established company that doubles its sales volume in a year may […]

Should you be making estimated tax payments?

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During the tax year you must prepay a substantial amount of the taxes you’ll owe for that year, or you risk being hit with an underpayment penalty. If you’re an employee, that’s usually not a problem. Your employer will withhold taxes from each paycheck. You can adjust the amount withheld so that it covers your […]

Are you able to benefit from an ABLE account?

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The “tax extenders” legislation that became law in December included the “Achieving a Better Life Experience Act” (also called the ABLE Act). This law provides for tax-exempt accounts that can help you or a family member with disabilities pay for qualified expenses related to the disability. These “ABLE accounts” are exempt from income tax although […]

Your social security benefits may be taxable

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Did you sign up for social security benefits last year? If so, you may have questions about how those payments are taxed on your federal income tax return. The good news is the formula is the same as prior years. That’s also the bad news, because the thresholds for determining taxability are not indexed for […]

Marriages end, and so do business ventures

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If your business is owned by two or more persons, a buy-sell agreement is one of the most important legal documents your business can have. This document provides for the “buyout” of an owner’s interest when that owner leaves. These are the areas that a buy-sell agreement should typically address. * Describe the events that […]

April 1 is the deadline for retirement distributions

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You may be approaching an important deadline if you have retirement accounts and you turned 70½ last year. Generally, you must begin withdrawing money from tax-favored retirement plans in the year you turn 70½. However, you may postpone your first withdrawal until April 1 of the year after you turn 70½. That means you have […]

March 2015 – Quick Updates

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March 16 is the deadline for calendar-year corporations to file 2014 income tax returns. March 16 is the deadline for calendar-year corporations to elect S corporation status for 2015. March 31 is the deadline for electronic filing of 2014 information returns with the IRS. March 31 is the deadline for employers to electronically file 2014 […]

Elect S corporation status by March 16

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If you own a small business, you have until March 16, 2015, to choose S corporation status for this year. In order to become an S corporation, you’ll need the unanimous approval of all shareholders. The principal advantage of an S corporation is that you avoid paying double taxes. In a traditional C corporation, profits […]