Key Takeaways Your business can give back and receive tax benefits if the donation is correctly structured and documented. Charitable contributions to qualified 501(c)(3) organizations can be deductible, but how you claim the deduction depends on your business type. Marketing-related giving (like sponsorships, branded gifts, or employee parties) often counts as 100% deductible business…
Key Takeaways Profit doesn’t equal liquidity: You can look great on paper (i.e., profitable) and still run out of cash. Year-end cash flow management is about accelerating what comes in and strategically optimizing (delaying) what goes out (legally, of course). Your year-end Cash Flow Statement is what lenders look at first (not your P&L). …
Key Takeaways Keep every contractor’s Form W9 on file before the first payment. If your contractor won’t give you a W9, be persistent. The IRS requires a three-step written request process. Use the IRS TIN Matching tool before filing your 1099s. It verifies name/TIN combos and supports reasonable-cause relief if the IRS flags an error…
Quick Summary: Could Changing My Business Entity Mean a Lower Tax Bill? If you’re a Sole Proprietor or single-member LLC, you’re likely paying a hefty 15.3% Self-Employment (SE) tax on 100% of your profit. Electing S-Corp status could cut that tax bill by splitting your income between salary (taxed) and owner’s distributions (not subject to…