We have a slew of clients who are running a lifestyle business. They like to be known as solopreneurs, but with annual turnovers less than $ 50,000, creating a formal business enterprise is not in the cards- because the return on investment would be too low. (We do have a bunch who clearly want to have at least $ 50,000 BELOW the line- those clearly need more formal structures.)
Continue reading Gig Workers/Self-Employed/Disregarded LLC
I’ve written about reasonable compensation (as recently as two days ago, I might add). Which is a complicated way of saying that when you are the owner of a company, you must receive a salary that reflects your efforts and your worth.
This is the year that business owners have been dreading. Oh, wait, successful business owners dread it. Because if your taxable (not GROSS) income exceeds $ 200K ($250K for married couples or $ 125K for those employing married filing separately [MFS] status), then you can be subject to the new ‘investment’ tax.
Continue reading For the self-employed or business owner
Another installment in the changes coming about- or, why I am discussing taxes in August.
First- if you filed an extension, the clock is ticking- much louder now. 15 October is the absolute drop dead date for individuals (15 September for corporations). And, that is only for the filing. Your taxes IN FULL were due way back in April (or March for corporations). Filing an extension really only helps if you don’t owe money. If you do owe money, you can expect to pay penalties and interest, too. Someone is going to pay that deficit down.
Continue reading Taxes? Now? It’s only August!
