The Small Business Tax Help Blog

Posts Tagged ‘consulting’

Question: Cost of a Business Tax return – Sydney Australia.?

I’m in full time employment but an a consultant on the side, having my own pty ltd company. I’ve been having my personal and Business Tax returns done by a ‘city firm’ for years. Last financial year I was thinking of finishing my company, so perhaps had 2 sales, in any event, not much work was required by the accountant. I complete my own BAS statements.

For doing my personal tax and Business Tax, the firm hit me with a $2850 (ex gst) bill. The only thing they did during that year outside my visit to get my tax done was check 2 BAS statements, each would have taken minutes to do.

Have I been charged too much? How much is a reasonable amount for a city firm?

Thank you in advance.

Answer: A little high, usually 1800-2000 is more in line, but really depends upon your unique situation

Business Digest for March 10

Cumberland Farms offers free coffee on Fridays; Comedy benefit to aid Holliston Action Fund; Institute of Management Consultants meets March 18; Social workers association schedules awards event; Caliper Life Sciences reports revenue increase; Mancusi-Ungaro named Sepaton marketing VP; CBIZ Tofias promotes Kebadjian and Quinn

Property Tax Consulting Business From Home FAQ and Answers #5

Question: As an independent contractor should I start an LLC?

I am starting a career in 100% commissioned sales as an independent contractor paid through a 1099. The business will have general office expenses. Would it be a tax benefit for me to start an LLC and have my checks paid to the LLC.

Answer: From a tax perspective, there is no difference between how a sole proprietorship is taxed and a LLC is taxed. The benefit from an LLC is legal liability protection.

Depending on the income, you could form an LLC and elect to be taxed as an S-Corp but there are other issues. You may save a little in taxes but you would have to issue yourself a paycheck, withhold payroll taxes and pay unemployment taxes on yourself.

I wouldn’t go the S-Corp route right away though. Many people form an S-Corp long before they need to and end up paying thousands of dollars in legal and accounting fees.

Walk before you run. See a tax professional in your area and he or she can run some numbers for you.

First Wind Secures $98 Million Financing for Rollins Wind Project

Clean energy project will create construction jobs, local tax revenues, work for small local busines…

WEB EXCLUSIVE – Afterthoughts on Worker Misclassification

Question: Schedule D – Why do you combine short and long term gains on line 16?

I’m working on my 2009 taxes and am filling out schedule D. I have long term gains and short term gains. Filling out the first page is easy but the second page starting with line 16 gets weird. Line 16 has me add ltg and stg together and then report that on 1040 line 13. This is then added to my AGI, meaning the ltg is taxed at the same rate as stg… confusing! Lastly, line 17 says if 15 and 16 are gains to fill out line 18 – line 18 is about the 28% rate gain worksheet which according to page D-8 of the instructions is about sales of “collectibles” or exclusion based on small business stock? What does that have to do with my long term gains on normal stocks? Where is the place that I multiply LTG X .15 = tax on LTG – everything I see points to adding the two types of gains and taxing them at my income rate… grr! Lastly, is the IRS run by rabid monkeys?

Answer: It is added together to determine your total taxable income. It is not taxed at the same rate. The calculations of your tax are done using the Qualified Dividends and Capital gain Tax Worksheet on page 39 of the instructions for Form 1040. On that worksheet, you subtract the long-term gain back out, so that the “long” and “short” term capital gains are taxed at different rates.

Taxes???An Important Cash Flow Metric

Ken Hackel, president of institutional equity manager, CT Capital, and author of Security Valuation

Avoiding Common Sales and Use Tax Problems – Pt. 3

Question: Why is only half of a sole proprietor’s self-employment tax deductible in the computation of taxable income?

Answer: The self-employment tax is actually Social Security. Half is deductible because if the sole proprieter worked for a large company, the company would be allowed a deduction on half his Social Security. The rule is an effort to be fair to the little guy.

LATAXNET | Latin American Tax & Legal Network

We are a network of advisors composed of Latin American, Caribbean, U.S. and Canadian professional firms.

Self Employment Tax Tips : Tax Tips for Home Business Owners

Vancouver seeks new lodging tax committee member

The City of Vancouver is seeking applicants to fill a vacancy on the Lodging Tax Advisory Committee. The committee is a sevenmember body that makes recommendations to the Vancouver City Council regarding expenditures of the city’s lodging tax revenue.

Doing Business in India