Do you qualify for a home office deduction

Requirements to Claim the Home Office Deduction Regardless of the method chosen, there are two basic requirements for your home to qualify as a deduction: Regular and exclusive use. Principal place of your business. Regular and Exclusive Use. You must regularly use part of your home exclusively for conducting business. For example, if you use Read more about Do you qualify for a home office deduction[…]

Tax Advantages of S Corporation

The tax advantages of an S Corporation vs sole proprietorship or partnership is typically in the Self Employment tax. With a sole proprietorship or general partnership, all profits are in one bucket that flows out to the owner for taxation. The owner is taxed for income tax and self employment tax. Income tax depends on Read more about Tax Advantages of S Corporation[…]


Married couple work as independent contractors form an LLC?

Question: Married couple live in California, both work as independent contractors, should they form a Delaware LLC and elect to be taxed as a corporation since the corporate tax rate is only 15% on the first $50,000 of profit. Answer by Wray Rives CPA CGMA: First off there is no scenario where just forming an Read more about Married couple work as independent contractors form an LLC?[…]

Selecting Your Small Business Legal Structure

One important consideration when starting your business is determining the best legal organizational structure. Why? Because it will affect operating efficiency, transferability, control, the way you report income, the taxes you pay and your personal liability. There is no one size fits all “best” structure for a business.  You have to weigh a number of Read more about Selecting Your Small Business Legal Structure[…]

Independent Contractor vs Employee the Pros & Cons

Ok, the title of this post was to get you to read it, so first off I will say that it is really a matter of pros and cons, because you are not free to choose how you want to pay workers. There are laws that you should follow when classifying workers as either employees Read more about Independent Contractor vs Employee the Pros & Cons[…]

Update on cloud accounting apps

It is time to update my summary of online/cloud/SaasS bookkeeping apps.   This was originally an answer to a question on Quora about what is the best cloud accounting solution for a small business.  The answer is that the best solution is one that the small business can and will actually use.  There are a Read more about Update on cloud accounting apps[…]

Tax Tips for the Self-employed

There are many benefits that come from being your own boss. If you work for yourself, as an independent contractor, or you carry on a trade or business as a sole proprietor, you are generally considered to be self-employed. Here are six key points the IRS would like you to know about self-employment and self- Read more about Tax Tips for the Self-employed[…]