Working for someone else will not necessarily guarantee you a retirement plan, as the financial and administrative costs of providing a retirement program can be prohibitive for smaller employers. But if you are self-employed (whether full-time or part-time), there is no reason you cannot fund your own retirement and reap the tax benefits associated with […]

Before you can determine whether an individual providing services should be treated as an employee or an independent contractor, you must consider all the relevant facts regarding the degree of control you have over the worker and the amount of independence the worker has. These relevant facts fall into three main categories: behavioral control, financial […]

Choosing the right business format is a critical step in establishing your business venture. Each structure has unique features, from tax implications to liability protections, that can significantly impact your operations and goals. A sole proprietorship is the simplest and least expensive business structure to create and operate. As the owner, you report profits or […]

Business owners have to start writing checks even before they start selling their products or services. How are those expenses treated for tax purposes? When starting a business, owners should treat all eligible costs incurred before opening as capital expenditures that are part of their basis in the business. Generally, the business can recover the […]

For any renovation or repair to qualify for a tax deduction, the work must qualify under IRS rules as a home (or capital) improvement. Examples of projects that may qualify include new additions, new roofs, whole room renovations, new siding, new heating or air conditioning systems and certain interior renovations such as new floors. In […]

Maybe you see how an off-hours activity can become a profitable company. Or perhaps you have a spouse who brings in sufficient income to support both of you, and you’d like to spend your days at home painting (or photographing) animal portraits and then selling those portraits to their owners. Can you write off the […]

A will has no legal power until it is admitted to probate and a personal representative is appointed by the court. But courts don’t act on their own after your death; someone must file the necessary paperwork. This is a built-in delay that can slow down the process significantly. Further, probate is a public process; […]

Staying proactive and detail-oriented can help you avoid the most common inaccuracies on your business taxes. Easily avoided mistakes are surprisingly common. These errors include providing an incorrect Social Security number, making math errors or entering the wrong bank information. Such mistakes can delay your refund or even cause funds to be deposited into the […]

An annuity is a contract between you and an insurance company that is marketed to provide predictable income in retirement, often to address the risk of outliving savings. The insurance company pays you a fixed or variable income, often through guaranteed periodic payments for either a specified period or your lifetime. Annuities shift a portion […]

Every employer covered by the Fair Labor Standards Act must keep records for each covered nonexempt worker. There’s no required form, but the records must include accurate data about the employee and hours worked plus wages earned. Once you’ve complied on a federal level, thoroughly research your state-specific requirements for each location you operate in. […]