The Small Business Tax Help Blog

Archive for March, 2008

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Question: CA LLC Tax payment…when?

Planning to form a CA LLC. The annual minimum $800 tax payment is paid when?

A. When the LLC is formed?

B. A the end of one year in business (example: if started in june ’08, due june ’09?)

C. Or paid along with regular income tax return that is filed by April 15th of the following year (example: if started in june ’08, due April ’09)?

Answer: A first year LLC has 3.5 months after filing its articles of organization with Secretary of State to pay its first annual LLC tax.

All subsequent years - The LLC tax is due 3.5 months after the beginning of a particular tax year (usually April 15 for caldendar year LLC. Under very rare circumstances that an LLC is not under a calendar year.)

The LLC tax is a prepayment for the priviledge of doing business in the current year. ie: the $800 paid on 4/15/08 is for the priviledge of doing business in California for calendar year 2008.

IRS Tax Tips for 2010 Filing Season - #6

Eight Tips to Help You Choose a Tax Preparer.

Business & Accounting Terms : How to Define a W-2 Form

Question: upgrading credit cards and raising limits?

I have 4 credit cards:

Amex
WaMu/Chase
Cap.One
Wells Fargo

I have a credit score of 809 and i want to work on raising my credit limits and upgrading my cards.

I got the WF when i was 18 graduating high school and Amex when i was 20. Im now 24. My income is only about 20,000 without tips being on the books.
My limits are only a couple thousand on each.

Can i call each company and ask for an upgraded card and limit? or should i call one wait a few months then call the next (About upgrading)?
As long as i keep the same card number will it hurt my score to get an upgraded card?(Trying to go from a Amex true earning to a Platinum Amex if they even let me with such little income)
Stop using credit thats a funny one. Thanks for your concern i just rotate cards and pay them off. I only want a higher cl so it would be pretty much impossible to even use 50% of it.

Answer: You will not likely get credit limit increases on that income. Creditors are current cutting credit limits even for "well qualified" customers.

Do not obsess about "upgrading" credit cards - you're falling for credit card industry marketing hype. You actually have too many open cards right now for your income.

More Springfield police-fire retiree pensions could face cuts

Springfield's police-fire pension board Thursday reduced the pension of another disability retiree found to have exceeded the plan's income cap.

Tax Tips: Discover why refi or a drop in your home value can slash your mortgage interest deduction

Question: I am in need of help!!!!!?

On yesterday, I think I got a sign…. I was on my way to work,
my job is 60 miles away, mind you. Half way there, my car
broke down, right beside a mechanic shop. He towed it
in for a good price. But I gave up my job, because, I am in
pursuit of my destiny. Besides, I was gonnna show up today,
but called out, once more. Simply for the fact that I wanna
move on, and go after my career in music, as well as
my other business. My taxes are coming back via
mail, and getting another job at this beach resort will not
be a problem. So what should one do ? Get another job
until things get better…. Or go after my destiny ?

Answer: Some might call this an EPIPHANY. Sounds like you had a sign right in your face and you took it for what it was instead of choosing to ignore it. I envy that! you go for whatever your heart and mind are telling you.

In then end and at then of each and every day you will have to answer to yourself and No one else!

Good Luck and Happy Saturday!

'-)

Big brother to drive away cars

The Singaporean’s love affair with the car remains strong, but the authorities seem determined to break up the relationship with a plethora of taxes designed to make owning one as stressful as possible.

Tax Tips & Information : Tax Deductions for Business Use of a Car

Question: Am i required to give seller of s-corp k1?

I purchased an s corporation last year. Had every problem under the sun including termination of corporate status prior to sale. I just wanted everything DONE, so I gave the sellers opportunity to fix each problem. I received an email today from their accountant asking for their k-1. Am I required to send it? I gave them $22,000 at sale. This was to pay off credit card debt of the company. I took over all other debt.
My purchase agreement states: Tax Matters: The Seller has timely prepared and filed all federal, state and local returns and reports as are and have been required to be filed and all taxes shown thereon to be due have been paid in full, including but not limited to, sales tax, withholding tax and all other taxes of every nature”.

Answer: Assuming your S-corp has a Dec 31 year-end, then a K1 is required for all owners during the calender year. As the tax return is not due until year-end, seller could not have prepared mid-year. My thinking is that you should prepare seller's K1 based on the financial statements at the time of the transfer. This way you can assure that the balance sheet is correct for you as of time of your purchase. There may be other issues in a situation like this that can impact the proper and correct preparation of these K1s. Feel free to call our office if you need further support.

Support Senate GOP plan to help New York recover

The economic woes facing our nation and state have placed tremendous strain and immense challenges on New York small businesses and middle class families. Last year alone, New York State lost 270,000 jobs in the private sector and unemployment in the state and city continues to climb.

Matt Baker is trying to defend your constitutional rights!!!

Question: Any reliable small business accounting services known in DC and Virginia?

Hi,

m having some serious prob in managing accounts, tax and payroll services for my business. It’s basically a small business and m looking for some cost effective solution for it… I don’t have time for learning accounting software, so preferably I’d go for some accounting company to whom I can outsource my work. It’ll be great if they are available online!

Thanks,

Answer: I have outsourced my accounting and tax work to Avicenna. They operate in Virginia and DC areas both and yes it's online too. Hope it works for you! http://www.avicennaaccounting.com

Amnesty program helped boost state tax collections in December

State tax revenues continued to lag in December, except for a one-time windfall, the secretary of finance reported yesterday. Two days after the General Assembly returned to Richmond to try to fix a $4.2 billion budget hole, Secretary of Finance Richard “Ric” Brown said a tax-amnesty program helped boost tax collections by 5.5 percent over December a year ago. That was the first month-to-month ...

Lesinski Small Business Tax Holiday