By month: July 2022
If you have self-employment income, you pay self-employment taxes (Social Security and Medicare taxes) on your net self-employment earnings. Not all income is self-employment income and some surprising types of income are considered self-employment income, as explained in this article.
Are you loving the 21 percent corporate tax rate and now keeping more money inside the corporation? If so, beware of the accumulated earnings tax. You can easily overlook it. You likely don’t have the proper documentation to avoid it. And it’s expensive.
If you’re a partner in a partnership or an LLC member, do you have to pay self-employment tax on your business profits? It depends. Some partners and members can avoid paying such taxes, but the rules are not always clear. You can generally avoid self-employment tax only if you’re not actively involved in the partnership or LLC business.
If you’re thinking of becoming self-employed or recently took the plunge, this article is for you. One of the first things you need to consider is the self-employment tax, which starts almost immediately. And the second thing you need to consider is how to reduce your taxes. You will find good ideas in this article.
Do you report your business on Schedule C of your Form 1040? Have you noticed that the self-employment tax significantly drains your cash? As we explain in this article, the S corporation may plug a good chunk of that leak.
Okay, nice, the IRS increased the standard mileage rates for the second half of the year. If you use the three-month sample method for tracking your business mileage, how do you apply that mileage to the different rates? This article will help you with that and offer additional insights.
There’s much to see in this short question and answer, such as the single-member LLC, sole proprietorship, corporation, payroll taxes, self-employment taxes, and tax-free income.
Many solo owners of C corporations have their corporations reimburse them for health insurance. That’s nice, but as we explain in this article, those solo owner-employees likely can do better.
You have much to consider when starting a business. Newbies make mistakes, some more costly than others. One big part of the tax equation is when does the business start. Although this is often straightforward, it can also be unusual, as seen in this article.