In the United States, the Internal Revenue Service (IRS) requires taxpayers to maintain adequate records to substantiate income, deductions, and credits reported on their federal tax returns. A receipt is often a key piece of that documentation. Failure to keep proper records can result in disallowed deductions, penalties, and additional tax assessments during an audit.ContinueContinue reading “IRS Receipt Requirements in the United States.”
Tag Archives: small-business
Home Office Expenses: Financial Accounting and U.S. Tax Treatment Guide.
Financial Accounting Treatment Recording and Classifying Home Office Expenses In financial accounting, home office costs incurred for business purposes are treated as ordinary business expenses, provided they are separable from personal expenses. A fundamental GAAP concept is the economic (separate) entity assumption, which means a business should only record expenses that pertain to its operations,ContinueContinue reading “Home Office Expenses: Financial Accounting and U.S. Tax Treatment Guide.”
Mandatory Payroll Reports for Utah Employers (Federal and State) Utah employers must comply with standard federal payroll tax filing requirements as well as Utah state payroll reporting obligations. Below is a comprehensive list of the key payroll-related reports at both levels, including each report’s name, filing frequency, information included, who is responsible for filing, deadlines,ContinueContinue reading
How You Pay Income Tax as an S Corp Owner.
An S corp is a pass-through entity, which means the corporation itself does NOT pay income tax. Instead, you (the owner/shareholder) report the company’s income on your personal tax return. Here’s exactly how it works: 1. The S Corp Files a Tax Return — Form 1120-S Your S corp must file Form 1120-S with theContinueContinue reading “How You Pay Income Tax as an S Corp Owner.”
Understanding Cost of Goods Sold (COGS) in the Trucking Industry.
In most industries, Cost of Goods Sold (COGS) represents the direct cost of producing or purchasing the items a company sells. But in the trucking industry, companies don’t sell physical products — they sell transportation services. That raises the question: Does COGS apply to trucking? The answer: Yes — but it looks a little different.ContinueContinue reading “Understanding Cost of Goods Sold (COGS) in the Trucking Industry.”
Can an owner of an S corporation be treated like a self-employed individual for self-employment tax purposes?
POINTS AND AUTHORITIES – SELF-EMPLOYMENT TAX AND S CORPORATION OWNERS I. Shareholders of S Corporations Are Not Considered Self-Employed for SE Tax Purposes Point S corporation shareholders, even if they are owner-operators or provide services to the business, are not treated as self-employed for purposes of self-employment tax on their share of the business’s income.ContinueContinue reading “Can an owner of an S corporation be treated like a self-employed individual for self-employment tax purposes?”
Points and Authorities section on who is considered self-employed under U.S. tax law.
Here’s a formal Points and Authorities section on who is considered self-employed under U.S. tax law. This is based on statutory law (IRC), regulations, and IRS guidance. POINTS AND AUTHORITIES – DEFINITION OF SELF-EMPLOYED INDIVIDUALS I. Self-Employed Individuals Include Sole Proprietors, Independent Contractors, and Members of Certain Partnerships Point A person is considered self-employed ifContinueContinue reading “Points and Authorities section on who is considered self-employed under U.S. tax law.”
The key difference between an incorporated and unincorporated entity.
The key difference between an incorporated and unincorporated entity lies in their legal structure, liability, taxation, and governance. Here’s a breakdown: 1. Legal Status Incorporated Entity: Has a separate legal identity from its owners. This means it can enter into contracts, own property, sue, and be sued. Unincorporated Entity: Has no separate legal existence fromContinueContinue reading “The key difference between an incorporated and unincorporated entity.”
How to Serve a Business Entity in California When the Agent for Service Cannot Be Found.
When initiating legal action against a business entity in California, proper service of process is essential. However, there are situations where the designated agent for service cannot be located, has resigned, or has not been replaced. In such cases, California law provides alternative methods for serving the entity. Understanding California Law on Service of ProcessContinueContinue reading “How to Serve a Business Entity in California When the Agent for Service Cannot Be Found.”
The amount of taxes an LLC pays.
The amount of taxes an LLC pays depends on several factors, including its tax classification (default or elected), the state where it’s registered, and the type of business it conducts. Here’s a breakdown: Federal Taxes An LLC is a pass-through entity by default, meaning profits and losses are reported on the owner’s personal tax return.ContinueContinue reading “The amount of taxes an LLC pays.”
Authority in Business Association Law: An Overview.
In business association law, authority refers to the power or right of individuals to act on behalf of a company, organization, or partnership. Understanding authority is critical in determining the scope of what can be done within a business structure, who has the legal capacity to bind the company to agreements, and the consequences ofContinueContinue reading “Authority in Business Association Law: An Overview.”
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