A single-member LLC that does not file a classification election will be classified as a disregarded entity. Income and expenses from the business will be reported on Schedule C with the owner’s income tax return. The member has the option for the LLC to not be classified under these default rules by filing an election…. …Continue Reading
Are Losses Allowed?
Let’s say you have a loss from a limited partnership you invested in, or you are a shareholder in an S Corporation and have a flow-through loss. You have to determine if you’ll be allowed to take the loss on your tax return; it is not automatically allowed. The first limitation is basis. You must… …Continue Reading
5 Reasons to Improve your Cash Flow Forecasting
At its most basic level, cash flow forecasting helps a business survive. By knowing exactly what cash you have coming in and going out and when those transfers occur, you ensure you have enough cash to continue operating from day to day. But there are other, often related, reasons to improve your cash flow forecasts,… …Continue Reading
S Corporation Eligibility Requirements
S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double… …Continue Reading
SBA Learning Center
The Small Business Administration (SBA) features a virtual campus of free training courses and workshops on their website at https://www.sba.gov. Courses include Growing an Established Company, How to Prepare a Loan Package and Marketing 101. The featured courses now, of the sixty courses available on their website, are Taking Your High-Tech Product to Market, Understanding… …Continue Reading
Employee or Independent Contractor
The IRS is still very focused on worker misclassification, going after employers for back payroll tax and penalties, reports the Kiplinger Washington Editors in their June 19, 2015 Tax Letter. The IRS has twenty factors they consider to determine if an employer-employee relationship exists. They use behavioral, financial and the type-of-relationship tests to conclude whether… …Continue Reading
Illinois Small Business Job Creation Tax Credit
The Illinois Small Business Job Creation Tax Credit gives small business owners a boost by giving them a $2,500 credit towards their Illinois withholding tax payments. After creating one or more new, full-time positions that meet the eligibility requirements, small businesses can register here to receive a $2,500 per job tax credit. Jobs created between… …Continue Reading
IRS RELIEF FROM ACCOUNTING METHOD CHANGES
CCH is reporting that the Internal Revenue Service has issued Revenue Procedure 2015-20 which provides relief to qualifying taxpayers from the requirement to file a change in accounting method to comply with the finalized repair regulations (regs). The regs on the deduction or capitalization of tangible property costs generally apply to tax years beginning on… …Continue Reading
ILLINOIS MINIMUM WAGE
New employees, during their first 90 days of employment, may be paid up to 50 cents less per hour. Tipped employees may be paid 60% of the hourly minimum wage. Certain employees must be paid overtime, at time and one-half of the regular rate, after 40 hours of work in a workweek. For adults, ages… …Continue Reading
January 31 Illinois DOL Reporting Deadline for Contractors
Any contractor who has construction services performed for it by an individual, sole proprietorship or partnership that is not an employee of the contractor must file a report by January 31, 2015 with the Department of Labor. The report must include the following information: contractors name, address, business identification number; the name, address and… …Continue Reading
