Newsletter Signup Stop leaving money on the table every time you pick up the fork. If you track meals correctly, they slash your tax bill—without drama. Snapshot (read this first) Business meals: 50% deductible. Must discuss business, not be lavish, and you keep records. Travel meals: 50% deductible only when…
After-Care, Day Camp, and Tuition — The Short Guide Quick answer (30 seconds): K–12 tuition: not child care → no break under these rules. Counts as child care: pre-K/nursery, before/after-school care, and summer day camp (not overnight), generally for kids under 13. Employee: employer help shows in W-2 Box…
Imagine you’re poised to expand your business. Your S‑Corp is stable, and you're ready to invest in a new venture—perhaps another subsidiary or service. You think, “I’ll just form another LLC or S‑Corp.” That works, but there's a smarter, leaner strategy: the Q‑Sub (Qualified Subchapter S Subsidiary). Why a Q‑Sub? 100%…
Many people invest time, money, and energy into activities they enjoy, only to wonder if their expenses are tax-deductible. The truth is—you can only deduct hobby expenses if the IRS classifies your activity as a business. Hobby or Business? The Difference Matters Under Internal Revenue Code §183, an activity not…
Myth: “Filing an extension raises an audit flag with the IRS.” Despite popular belief, there is no evidence that requesting a tax extension increases the likelihood of an audit. In fact, filing later may work to your advantage. A Forbes review confirms: "There is no data suggesting that tax…
Why Even Sole Proprietors Need a Board You might think you need an S‑Corp or LLC to use a board—but truth is, sole proprietors can (and should) set one up too. Here’s why: Strategic Voice & Support A board of 3–5 individuals (odd-numbered for clear decisions) offers insight, accountability,…
When you pay subcontractors but didn’t issue a 1099-NEC, here’s what matters: 1. Deductibility under § 162: Under IRC 162, any ordinary & necessary business expense is deductible if you can prove the payment—by check, bank record, or reliable reconstruction (the “Cohan Rule”).Not issuing a 1099 doesn’t eliminate your right to…
Why you should consider converting to an S‑Corp If your LLC is netting around $50K+, it may be time to consider an S‑Corp election. Here's why: Slash self‑employment taxesAs an LLC, 100% of net income is subject to FICA (Social Security and Medicare). Electing S‑Corp status lets you pay yourself…
Running your own business means you’re in control—until it comes to paying yourself. Surprisingly, many business owners stumble here. Cash flow isn’t usually the core problem; paying yourself correctly is. Common Mistakes Owners Make: 1. Mixing Business and Personal Expenses: Pulling funds directly from your business for personal expenses. Impact:…
If you're currently in a partnership, someone might've told you, "Hey, convert your partnership to an S-Corp to save on self-employment tax!" But hold up—making your top-level partnership an S-Corp? Big mistake. Here's the smarter move: Each Partner Creates Their Own S-Corp Instead of converting your partnership, each partner should…