Business
Click here to go to the Individual FAQs
Have a question that’s not answered? – Click Here to Contact Us
1. How do
I get an Employer Identification Number (EIN)?
Complete a Form SS-4. There are various ways to submit your
application for an EIN. You can obtain an EIN immediately by calling
the IRS’s Business & Specialty Tax Line (800) 829-4933. You
also can apply for EIN by mailing the completed Form SS-4 application
or by or faxing it to your state FAX number. In certain situations
you may qualify to use the Internet EIN (I-EIN) application as another
way to apply for and obtain an employer identification number.
2.
I need to hire people quickly for a big job. Should I hire
independent contractors or new employees?
If you need people for a short time to complete a job, independent
contractors will be your better choice. You don't have to withhold
federal, state, and Social Security taxes, or pay unemployment or workers'
compensation insurance for independent contractors. You also don't
need to offer benefits like paid sick leave, vacation, health insurance,
and stock options, as they do to attract and retain employees. In fact,
you don't have to offer much of anything to independent contractors,
except that for which they've agreed by contract. This may save some
paperwork and money.
However, each situation is different and you should consult with us to be certain that you won't fall into the trap of a mistaken independent contractor vs. employee situation. Just because someone tells you they are an independent contractor, it doesn’t mean they qualify to be treated as such. In fact, you will be responsible for those same taxes and benefits you may be looking to avoid, if you mistakenly treat someone as an independent contractor rather than an employee. In addition, you may be subject to significant penalties for that mistake.
Because this is a very expensive mistake, if you are wrong, we recommend you contact us before you treat someone as an independent contractor.
3. Should I incorporate my business (S Corp vs. LLC)?
2006 Tax Comparison of C Corporation, S Corporation & Limited Liability Company (PDF)
4.
I’m
getting ready to sell my business, how do I determine its value?
If you are using a business broker, often times they can assist you
in determining an estimate of your business’ value. But
it is necessary to use a CPA who is experienced in business valuations
or in performance of due diligence in order to be certain that you
or your broker haven’t overlooked any details which could have
an impact on your sale and the value of your business. Business
values are determined by a myriad of factors, including but not limited
to, the annual sales, the assets included, the annual profits, and
tax attributes.
Keep in mind, your business’ value is no greater than the amount a buyer is willing to pay. With experienced professionals working with you, you will be able to understand and price your business appropriately.
5.
Why should I have Financial Statements prepared and how often is
it necessary?
Financial statements help you manage and monitor the progress of your
business, and help you in dealing with banks and creditors. Regular
financial statement analysis will provide useful insights to your business. We
recommend you prepare your financial statements at least annually. However,
more frequent analysis will allow you to respond to financial issues
before too much time has passed, or in some cases a deadline is missed.
6.
How long should records be kept and which records are important?
The records must be kept as long as they may be, or may become material
for any tax purpose. Generally records that support an item of
income or deduction on a tax return should be kept at least for three
years following the filing of the returns.
It is advisable to keep certain records (e.g. tax returns, W-2s, 1099s, closing statements for the purchase or sale of real estate etc.) indefinitely. You may need these records at some point to prove your earnings for social security purposes or your heirs may need information from your tax returns.
If you are in doubt we can assist you in identifying which records should be kept and for how long.
7.
When do I need to make quarterly tax payments?
Usually if you have significant amounts of non-wage (W-2) income, for
which you cannot or choose not to have your withholding taxes adjusted
to allow for the additional tax burden, then you should begin to make
quarterly estimated tax payments. We can assist you in determining
how much and when you will need to pay in estimated taxes.
8.
If I receive payment for an invoice in December, but don’t
deposit it until January, when do I include it in my income?
Delaying the deposit does not defer recognition of income, you should
include payment as income in December.
9.
If I pay a bill by credit card in December but pay the credit card
in January, when do I claim the expense?
The expenses are claimed in the year in which the credit card company
charges your account. A credit card is the same as a loan from
a bank; you have borrowed the funds in order to pay a bill or an expense. Therefore,
the expenses should be claimed in December, as long as your account
was billed on or before December 31.
10.
Can I claim both an office and home office?
Generally you may not claim both an office and a home office for the
same business. Unless, you are able to meet certain other requirements
of the home office use, such as regular storage or rental use. However,
there are certain conditions and limitations that must be considered
in order to qualify. We can help you determine you meet those.
11.
When can I deduct my clothes?
When your clothing is adaptable to "street-wear" it is not
deductible. However, the cost and upkeep of work clothes are
deductible if two requirements are met. (1) The clothing must be worn
as a condition of employment. (2) The item(s) of clothing are
not suitable for everyday wear.
Have a question that’s not answered? – Click
Here
Frequently Asked |
Download Forms |
Individual / Business |