Should I incorporate?
See “Choosing your type of business entity” page
Can I write off my vehicle if I start a business?
In order to take vehicle expenses, you must keep a mileage log tracking your business miles. Two methods are available to deduct expenses:
Standard Mileage Rate: 54 cents/mile (2016), 57.5 cents/mile (2015)
Actual Expenses: depreciation or section 179, fuel, repairs, insurance, tabs
How do I get money out of my company?
You may take money out using two methods:
Payroll: You must declare a reasonable salary if you have income.
Draws: You may take draws up to your basis in the company.
Do I pay estimates?
If you form an S Corporation, you pay income taxes through withholdings from salary. If you form an LLC, you must pay quarterly estimated payments.
How do I organize my records?
You should keep a record of all income and expenses for the year. We recommend using QuickBooks to track these accounts. You should also keep all receipts and documentation to support your expenses. You should organize these by expense type, make a total for the year, and keep them for four years.
If I do business out of my home, can I write off house expenses?
Only sole proprietors can take Business Use of Home as a deduction. It is an IRS audit flag and you must recapture depreciation when the house sells. If you form an S-corporation or and LLC, you should deduct all directly related expenses: office furniture, business phone line, internet costs, etc.
How often do we meet?
We can meet as often as client needs. We should meet twice a year at minimum if you would like to determine a mid-year estimate of taxes owed. We do not charge for quick phone calls throughout the year.
What/How do you charge?
See the Fee Schedule.
Can I pay my kids and save payroll taxes?
If your kids work in the business, document wages and hours. You must pay all payroll taxes if you are an S-corporation or an LLC. You can save payroll taxes if you are a sole proprietor, but there are age limits.
How do I get money to start my business?
We recommend the following banks: Klein Bank, Coon Rapids; Village Bank, Ramsey, Oak Grove & St. Francis; The Bank of ER, ER. You may apply for a SBA loan through these banks.
How do I pay my taxes?
You pay your income tax through your personal return.
What do I do with money I spent before I started the business, or before I started making sales?
You should reimburse yourself from the business when you open the account, or you may record a Note Payable to you at the start of the business.