The Small Business Tax Help Blog

Archive for September, 2010

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Question: Trying to obtain My EIN Number?

When going for My EIN Number online it (IRS) asked how many members. I said 2, and it said that being its a multi-member L.L.C. that they (IRS) had to to initially set up as a partnership. Don’t want to do a partnership. I did select LLC in the beginning of the application.

Does it say that cause it has to set it up as a partnership for right now?

Answer: Your limited liability company will remain a limited liability company. The EIN doesn’t effect the legal classification of your business entity, it merely identifies the tax classification for the preliminary purpose of sending you applicable tax forms for your convenience so you don’t have to get them on your own. It is not even a tax election which you will make based on the type of tax return you end up filing for the LLC.

For an LLC, it is generally desirable to elect to be treated as partnership or disregarded entity for tax purposes because the IRS will not subject the LLC itself to income tax. Otherwise you would get taxed twice by the IRS for any income the LLC makes, once on the entity level when the LLC makes income and again as personal income tax when the LLC passes the income on to you and the other member. If classified as a partnership by the IRS, income tax is only assessed against you as personal income tax and reported as such on Schedule K of your personal income tax return.

Edit: There are several legitimate reasons for forming a limited liability company to operate one’s business, most of which revolve around the concept of protecting one’s personal assets against the liabilities of the business. One doesn’t need to have a “huge operating corporation” to expose one’s personal assets in operating a business outside of a limited liability entity. All it takes is one engagement with a client or customer. Further, the costs of organizing a limited liability company with equal membership interests are nominal outside of certain jurisdictions like New York.

Cell Cure Neurosciences Ltd., a Subsidiary of BioTime, Inc. and Hadasit Bio Holdings Ltd., Enters into an Exclusive …

BioTime, Inc. (NYSE Amex:BTIM), Cell Cure Neurosciences Ltd., and Hadasit Bio-Holdings Ltd. (Tel Aviv Stock Exchange:HDST) jointly announced today that Cell Cure and Teva Pharmaceutical Industries Ltd. have entered into an exclusive license option agreement to develop and commercialize Cell Cure’s OpRegen TM product for the treatment of age-related macular degeneration (AMD). OpRegen TM is a …

Owning Your Own Business, Part 1 – Dr Ray Hagins

Question: I want to start my own party planning business but i need alot of help, and i have alot of questions?

1. i need a name for my business, i have narrowed down my search for a name to “premier parties” ” empire parties” and “elite parties” which one sounds best to you?

2. does anyone know if i need an EIN (employer identification number) or any licenses for that matter because i dont plan on having any employee’s just yet.. maybe next year when the business really takes off. so do i need anything now?

3. im kind of weary of starting a party planning business cause im not sure how people will respond to it.. are the days of hiring a party planner over or would you still use one for some big functions?

Answer: Go to http://www.score.org/ and in the upper left hand corner, enter your zip code. On the next screen, you will get information on the nearest SCORE chapter. Call them and arrange for a free meeting with a SCORE counselor.

SCORE is a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA).

SCORE has 389 chapters in locations throughout the United States and its territories, with 10,500 volunteers nationwide. Both working and retired executives and business owners donate time and expertise as business counselors.

Cerabino: She’s ready to marry and means business

Cerabino: She’s ready to marry and means business

Search Engine Commercials: 1998

Question: Can someone explain this article to me? I thought that Obama was giving us tax cuts?

http://finance.yahoo.com/news/INSIDE-WASHINGTON-Rude-apf-15091434.html?.v=1

I thought that anyone making under $250k a year was going to get a tax break…

“Obama has touted the tax credit as one of the big achievements of his first 100 days in office, boasting that 95 percent of working families will qualify in 2009 and 2010.

The credit pays workers 6.2 percent of their earned income, up to a maximum of $400 for individuals and $800 for married couples who file jointly. Individuals making more $95,000 and couples making more than $190,000 are ineligible.

The tax credit was designed to help boost the economy by getting more money to consumers in their regular paychecks. Employers were required to start using the new withholding tables by April 1.

The tables, however, don’t take into account several common categories of taxpayers, experts said.”

What is going on?

Answer: Thomas Jefferson once quipped that a government large enough to provide everything is also powerful enough to take it all away. Obama and the Democrats are growing the government. The government giveth and the government taketh away.

PGI Reports Second Quarter 2010 Results

Polymer Group, Inc. reported results of operations for the second quarter ended July 3, 2010.

IRS Commercials: EITC_Groceries – January 2010

Question: I have some questions about internet business?

I’m starting a online business and I have alot of questions because it seems like there is alot to do. If you want to e-mail me that’s fine too.

1.I am using a dropshipper do I still charge sales tax for my state(Illinois)?

2.If so does this mean I need to get a sellers permit?

3.If I have an EIN should I also file an DBA?

4.Do I file taxes yearly or quarterly?

Any other help or information would be great.

Answer: Hi. Here is a link to your state’s government site for business. I hope this will help in answering your questions.

http://business.illinois.gov/starting.cfm

CCM Choral Honors Program Founder in Very Special Concert

Cincinnati, Ohio On Sunday, Oct. 24, CCMs Choral Studies Program presents a very special concert event. Elmer Thomas 80th Birthday Concert celebrates CCM Professor Emeritus and Choral Studies-founder Elmer Thomas. Thomas was a member of CCMs faculty from 1966-1995, elevating the Choral Studies Program to international recognition during that time. His birthday concert will feature…

Ein Volksfest-”Folk Fest” Shostakovitch MPCB

Swimming in Weed

From above, the bushy green plants in backyard after backyard resemble English topiary gardens, neat and tidy.

Health Reform: What Employers Should Know for Now and for the Future – Part 10