As a Limited Company, you have the option to defer the tax on a van you've purchased by capitalizing the cost of the van and treating it as an asset on your company's balance sheet. This means that the cost of the van will be spread out over several years through annual depreciation expenses, rat...
Doesnt matter for Federal Income Taxes, Only State Income Taxes. You will have to report the income in the State where you generate the income and reside. So report the income in California. But, If you do conduct business in Montana then you would have to complete a Non-Resident Tax Return.
Great question! Each expert sets their own rate. When a client books a call, they enter the estimated length of call (generally around 30 minutes) and know the estimated amount they will be billed. Once the call is over, Clarity calculates the actual length of call in minutes, multiplied by the ...
I'm assuming you're talking about yourself, working for another company? The first thing to consider is that a "1099" is NOT an employee, rather an "independent contractor". The IRS takes it seriously when a company claims 1099 contractors, when in fact, these contractors are treated as employe...
There are three angles to look at this structure from: 1) Is it the best way to set things up to hold your investment from a legal perspective? 2) Is the it the best way to minimize your taxes? and 3) Is the best way to set things up from an accounting (i.e. bookkeeping) perspective? In your q...
Form 5472 is a tax form that must be filed by certain foreign-owned corporations that are engaged in a reportable transaction with a related party. If you are a foreign founder of a C corporation and you engage in a reportable transaction with the corporation, you may be required to file Form 547...
I did not actually have too much experience with bookkeeping platforms before. But we stick with Xero and there is no reason why I should look for another option.
The IRS wants quarterly estimated tax payments based on an estimate of what the business will make that year. They want you to pay 100% of the previous year's tax over the course of 4 quarters or 90% of the current year's estimated income. However, since this is their first year in business and...
When you open a bank account for your corporation, you'll need to make an initial deposit with your personal funds. A shareholder's initial contribution can be recorded as either debt or equity. If you want to record the initial contribution as equity, you would debit cash for the amount deposi...