20 Tax & Business Tips for the New Small Business or Non Profit

OrganizationMilton Oates & Camari Ellis

• An Accountant will remove 1000 Headaches

Talk to Your Accountant

Every Township and State has different Rules• Business Privilege• Signing License• Sales Tax• Waste Removal

Know the Law of the land

• Sole Prop• LLC• S Corp• C Corp• Non Profit

Decide on Your Entity

• Usually Choosing a Calendar Year will help to make your tax filing easier

Calendar Year vs Fiscal Year

• What will it take for it to work

• What are you cost structure

• Who can best utilize your services

• What makes you different

Think about your Business Model

• Utilities

• Payroll

• Office Supplies

• Entertainment

Keep Good Records

• Freshbooks – Great for freelancers and businesses that only really need to manage invoices

• QuickBooks – Great for business that are a bit more sophisticated that need to track inventory and other assets

Determine BookKeeping System

• One Good Accountant will remove 10,000 Headaches and Save you $10,000

Talk to Your Accountant

• The IRS wants all Businesses to pay most of their taxes before the filing deadline

Pay Your Estimated Taxes

• State and Local Taxes must be factored into your overall planning

Pay Your State and Local Taxes

• IRS Audits are not Fun

• Keep Documentation

Respect the IRS

• Never Spend Money for the Tax Write off

• Every Business investment should be beneficial for the business before Tax Considerations

• If you are in the Highest Tax Bracket 33% - You will only get back $.33 for every $1 you spend. Make your purchases Purposeful

Spending Money Vs Tax Write Off

• IRS Audits are not Fun• Commuter miles are not deductible

• Standard mileage rates:• 56.5 cents per mile for

business miles driven.• 24 cents per mile driven

for medical or moving purposes.

• 14 cents per mile driven in service of charitable organizations.

Track your Mileage

Major Purchases are Expensed differently then your expenses for paper and pencils

Depreciation

• This applies to • S-Corps• C-Corps

File Corp Taxes by March 15th

• This could also apply to: • LLCs • Partnerships

File Personal Taxes by April 15th

• File your Taxes 90 Days after your Year End

Fiscal Year End for Non Profits

• File an extension if you can file you Tax Returns by the deadlines

• Avoid Fine

Extensions

• If you have made a mistake you can easily file an amended return

Made a Mistake?

• Can a Tax Deduction for paying yourself

Start a Retirement Plan

• One GREAT Accountant can save you 100,000 headaches and help you make over $100,000

• Year End Planning

• Talk to your Accountant between the Sept – Dec every year

Talk to Your Accountant

Q & A

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