Did you just open a business, start freelancing or receive a “1099 Form” for the first time? Congratulations on joining the ranks of the self-employed. You have earned the privilege of paying estimated taxes directly to the IRS, and perhaps your state as well. The skinny: Read more
(originally written for The Water Trough, Ed Drozda’s fabulous website):
Have you just started a business and been wondering whether or not to incorporate? Or freelancing for a while and wondering if now is the time to do it?
What are the pros, cons, choices? LLC, S Corp, L3C, R2D2 – my head, she is spinning.
The turning of the year is a good time to review your options.
Preliminaries
In most situations incorporating* is an option not a requirement. You are a freelance architect, you are an architect with your wife, you are an architect with your wife and your mistress – you may incorporate but you do not have to.
When would you have to? Read more
Image Source: Richard Masoner
In preparing for my first sales tax webinar I happened on an outstanding website – The Sales Tax Guy. The author incorporated some of my points in a recent post, and it was so well-written I asked and received permission to share it. The article below is useful for anyone who sells things.
A reader (Richard Streitfeld at peaceloveandbusinessplanning.com) recently asked me about sales taxes related to art and artists and I referred him to an article I’d written a while back. We continued to exchange emails and he told me about the writing and training he’s done on this topic. He inspired me to try my own spin on this. In weak moments I think of myself as an artist, so maybe an article for the right-brained folk might be interesting. Read more
My partner and I recently did a webinar on a hot topic — non-profits with for-profit enterprises (“hybrid non-profits). They come in various guises and go by various names, including social enterprise, social ventures and L3C. Click more to view the slideshow. Read more
Here is the slide show for the webinar I presented for “Ignition: Transform your Art Passion into Business”.
Some of the topics addressed:
Tax deductions for artists; minimizing audit risk; incorporation options; record-keeping;
I love doing these; let me know if you want me to speak, in person or remotely, to a receptive audience you are familiar with. View the slideshow: Read more
I recently conducted a fascinating webinar (really) on “Sales Tax for Artists”. It was sponsored by Xanadu Gallery in Scottsdale Arizona. The topics covered include: nexus; internet sales tax; minimizing exposure; resale certificates; and accounting for sales tax. Click more below to view the slideshow on artists and sales taxes. Read more
For many of us, these are the most economically uncertain of times. Sure there are never any guarantees, but the last few years seem to have had a sharper edge. If not already financially strapped, we are less confident about the future. How then to save or plan? Read more
“I want to open a business with my friends.”
GREAT! And – How you structure it is of vital importance — both to the business and to your friendships. If you want both to prosper it’s critical to think forward– how could things go wrong even if they go right? Read more
This morning I was the guest on “Business Talk”, a 3 minute segment that airs weekdays on the NBC affiliate here in Rhode Island (hosted by Frank Coletta). I was fortunate enough to be invited back after my initial appearance at the end of March. My theme today was business incorporation — a quick survey of the advantages and disadvantages of the S-Corp, LLC and other options. Here is the link: If you last through the 3 minutes there is a bit of “truthful humor” at the end. Enjoy.
photo by "jnyemb" (Flicker Name) under Creative Commons license
I was recently interviewed by Kevin Grover, of the Kevlor Marketing Group (contact information below). Kevin is also co-owner of Divorce Resource Center of RI, an outstanding local resource (www.drcri.net)
Q: How should I calculate the percentage or ratio of the area of my home, apartment and home business expenses that I can legally deduct and use as a tax deduction and write off?
A: Use a tape measure… Literally! Measure the square footage of the interior of your home or apartment and then calculate the space of your home office in square footage, and you’ll determine the percentage of your entire home or apartment that it represents.
Example: Divide the little number by the big number. For example: 108 sq. ft. office (9x12ft. room) / 400 sq. ft. home equals .27 or 27%. That 27 % is the number your accountant will need.
Q: My business is Incorporated (S Corp., C Corp.). Does that matter? Read more