Quick Answer: The primary disadvantages to a sole proprietorship for growing business owners are unlimited personal liability and a mandatory 15.3% self-employment tax on 100% of net profit. Once annual net profit exceeds $40,000, remaining a sole proprietor creates severe tax drag and leaves personal assets exposed compared to an S corporation tax election. Key…
Quick Answer: Your small business qualifies for the R&D tax credit whenever you pay U.S. wages, contractor fees, or supply costs to overcome technical roadblocks while building or improving products, custom software, or internal processes. By working through that technical trial-and-error, you can convert these everyday business expenses into direct income tax reductions or up…
Credit and debit card payments have become a routine part of doing business. They offer customers convenience and can make it easier for businesses to collect revenue. But that convenience comes with a cost, and for businesses with significant card volume, processing fees can become a meaningful operating expense. A processing rate of 2% or…
Running a business means making financial decisions every day. Is it time to hire? Are prices keeping pace with costs? Can the business afford a major purchase? Why are sales increasing, but cash still seems tight? Your financial statements contain information that can help answer those questions. Being familiar with the accounting concepts behind the…