The Small Business Tax Help Blog

Archive for January, 2009

Question: Registering a new business in New Jersey, can’t afford a preparer?

I am starting an online business with my friend selling clothing online. We have registered as a Domestic LLC in NJ which cost $125 and are about to apply for a e.i.n. (tax id), a friend of mine strongly suggested to become an S. Corp for the tax benefits.
We will be ordering bulk apparel from a site that requires a tax i.d., and then outsourcing our designs. The only things we would handle is the shipping around the country.

My question is what tax id should i get? Partnership LLC? S Corp? Any tips you guys could give me? I want to take care of it myself without hiring a lawyer or preparer but I’m afraid of messing anything up. Please help. thank you.

Answer: check with the department of revenue (or whatever it is called in NJ) and ask what the taxes are on an S-corporation and on a Limited Liability Company and a partnership.

As far as the IRS is concerned the taxes are basically the same for all three. The profits, whether distributed or not, are allocated to the partners/shareholders who pay the taxes. The business doesn’t pay any federal income tax.

There is no reason to change from an LLC at this time.

Jerry-the-bookkeeper

Girard Interiors supports FOCAS for Prevent Cruelty to Animals Month

In the spirit of April being Prevent Cruelty to Animals Month, Girard Interiors in Westwood will hold its second annual fundraiser for Friends of the County Animal Shelter (FOCAS). Throughout April, no matter the total cost of a transaction, 5 percent of every sale at Girard Interiors will be donated to FOCAS. The store will also accept monetary donations for FOCAS, in the event someone would …

How To Find A Good Online Business in New Jersey

Women’s golf shares second place with Washington

By: Portland State women’s golf tied with event-hosts Washington for second place at a single-round triangle tournament with Oregon State and UW last weekend. Tiffany Schoning finished at the top of the individual leaderboards in a tie for medalist honors….

Vermont Tax Policy Testimony 2009

Looking back at the top LM/Narberth stories of ‘09

Dogs finally have their day in LM parks: Jan. 7 — The new year brought a new breed of park to Lower Merion. Monday, Jan. 5, was the first day dog owners in the township could apply for and get permits to walk their pets off-leash in parts of two parks.

Prince Charles Flies to Copenhagen to Rally the Globalist

Question: Don’t these economic plans sound quite promising?

Obama is proposing a new employee tax credit in which businesses would get a credit for each ‘American’ employee hired over the next two years. He is proposing that we allow every family to withdraw up to 15% (up to $10K) of their 401K without penalty throughout 2009 to help with the faulting economy. He’s proposing tax cuts for everyone making less than $250,000/year. Obama wants to make it easier for private lenders to make small business loans by expanding the Small Business Administration’s loan guarantee program. This was only the tip of the iceberg.

If you have any info regarding McCain’s short term or long term plans to help the economy, please list them in your answer. Since McCain said the economy was fundamentally strong, I haven’t seen any changes to his plans.

Answer: Yes. Being a business owner myself, I love this plan. It is highly workable and will help keep jobs in the US where they belong.

McCain, on the other hand, has no plan. He is just a fighter (reinvented himself again today) and I have no idea what he is fighting or where his plans are.

State Senator Seward Delivers His State of the State In Cortland

Cortland, NY (WBNG Binghamton) New York State Senate, Senator James L. Seward (R/C/I – Oneonta) outlined his agenda of state spending cuts, property tax relief and business investments he dubbed “CSI – Upstate.”

R&D Tax Credit and Small Businesses - 1

Vucurevich Foundation dishes out $1.5 million to area groups

The John T. Vucurevich Foundation awarded almost $1.5 million in grants to South Dakota arts, education and health and human services.

Pine Bluff / Jefferson County EITC Coalition – Free Tax Prep