Some companies are better equipped than others for growth. The difference can come down to something as seemingly simple as business structure—not leadership vision, not go-to-market strategy, but the details of an incorporation document. Specifically, we’re talking about the distinction between an LLC and a C corporation.
If you own a startup, chances are good your business is structured as an LLC (short for limited liability company). Chances are also good your business could benefit from converting to a C corporation (AKA “C corp”).
Like getting struck by lightning or dying in a plane crash, an Internal Revenue Service audit is as terrifying as it is unlikely. The IRS audits fewer than 1% of taxpayers every year. Nonetheless, there is always a remote possibility you’ll receive a notice that your tax return has been selected for examination.
If you’re one of the (un)lucky ones, don’t panic. Take a deep breath and do the following:
September 16, 2019
Posted by Celene Robert
to
Taxes
Getting your taxes filed on time is a lot easier when you a) have a year-round accounting system and b) have a clear deadline to aim for. By outsourcing your business’s accounting and taxes with inDinero, your covered on both fronts. In the article we’ll focus on the latter to help all business owners build a 2019 business tax calendar to keep up with filing responsibilities and avoid late penalties.
Yet countless business owners still manage their finances by themselves—not because they like punishment, but because they believe they’re saving money by doing so. Particularly for early-stage companies, an accountant or accounting department seems like a luxury that’s difficult to justify.
This belief frequently has little basis in reality. For a growing business, outsourced accounting can absolutely be worth the cost. By outsourcing your company’s books, you can save money on taxes, make better use of your and your team’s time, and gain the perspective you need to more effectively communicate about your organization and your vision.
Here are a few reasons outsourced accounting is worth the cost:
It’s that time of year again. Tax season. This time, you’re sure you’ve got things under control. Yes, you’re stressed, you have eight different spreadsheets open on your screen, and you’re waiting for yet another government website to load, but you’re almost at the finish line. And after spending hours filling out multiple forms—triple-checking that you’ve made the right estimated payments, tracked the right expenses, and applied the right deductions—you finally file your taxes.
Like so many others in the tax industry, we’ve spent the last 10 months combing through the 100+ page Tax Cuts and Jobs Act (TCJA) of 2017. There are many changes. Some of those changes are still being studied by accountants and the IRS alike, so it’s impossible to detail them all here. But we pulled out the top four changes you should know about the new law that could affect your 2018 returns.
If you’ve made it this far, I assume you’ve done your research on QuickBooks alternatives and are thinking about buying inDinero. So the next logical question is, “how does QuickBooks compare to inDinero?”
Great question, self! The difference between QuickBooks and inDinero is a topic we run into frequently in our conversations with founders. Outside of those conversations, there’s no shortage of blog articles, Quora posts, and side-by-side reviews attempting to provide answers as well.
Hiring? If you run a startup, you probably should be. Job growth is up, unemployment is down, and our country’s already competitive labor market is on track to tighten even further in the coming months.
Long story short: now is the time to focus on employee recruitment and retention. Fortunately— for once—you can count on the Internal Revenue Service for help. Numerous tax credits cover costs associated with hiring. In fact, the United States tax code is full of benefits and incentives aimed at helping emerging companies like yours create jobs. Check out a few ways the government will literally pay you to hire people:
A quarter of a million dollars could transform your startup. Or it could buy you a vintage Taco Bell hot sauce packet. No joke—as of this writing, that is a genuine listing on eBay: one unopened pouch of Taco Bell hot sauce, circa 1984–1992, priced at exactly $250,000.
If you can think of better ways to spend $250,000 (or if collecting expired condiment packets is truly your definition of Living Más—I won’t judge), you should consider claiming the United States Research Experimentation Tax Credit, commonly referred to as the R&D Tax Credit.
Where you do business says a lot about your company. If you’re a clothing shop in Waikiki, you probably have to keep your bikinis and boardshorts stocked all year round. If you’re a therapist in New England you might find your busy season ramps up in November due to seasonal depression. But no matter what you do where you do it affects how you file your taxes.
Portland
Should You Convert Your Company to a C Corp?
October 21, 2019 Posted by Celene Robert to Taxes, Business Advice
Some companies are better equipped than others for growth. The difference can come down to something as seemingly simple as business structure—not leadership vision, not go-to-market strategy, but the details of an incorporation document. Specifically, we’re talking about the distinction between an LLC and a C corporation.
If you own a startup, chances are good your business is structured as an LLC (short for limited liability company). Chances are also good your business could benefit from converting to a C corporation (AKA “C corp”).
What Should You Do If You Get Audited By the IRS?
October 08, 2019 Posted by Celene Robert to Taxes, Business Advice
Like getting struck by lightning or dying in a plane crash, an Internal Revenue Service audit is as terrifying as it is unlikely. The IRS audits fewer than 1% of taxpayers every year. Nonetheless, there is always a remote possibility you’ll receive a notice that your tax return has been selected for examination.
If you’re one of the (un)lucky ones, don’t panic. Take a deep breath and do the following:
When are 2019 Tax Returns Due? Every Date You Need to File Business Taxes in 2020
September 16, 2019 Posted by Celene Robert to Taxes
Getting your taxes filed on time is a lot easier when you a) have a year-round accounting system and b) have a clear deadline to aim for. By outsourcing your business’s accounting and taxes with inDinero, your covered on both fronts. In the article we’ll focus on the latter to help all business owners build a 2019 business tax calendar to keep up with filing responsibilities and avoid late penalties.
(Still working on your 2018 business taxes? Check out those dates in the 2018-2019 version of this calendar.)
Is Outsourced Accounting Worth the Cost?
September 10, 2019 Posted by Celene Robert to Taxes, Accounting
Hate using your time to keep track of your business’s finances? You’re in good company. Many business owners consider bookkeeping, accounting, and tax filing the least enjoyable aspects of running their companies.
Yet countless business owners still manage their finances by themselves—not because they like punishment, but because they believe they’re saving money by doing so. Particularly for early-stage companies, an accountant or accounting department seems like a luxury that’s difficult to justify.
This belief frequently has little basis in reality. For a growing business, outsourced accounting can absolutely be worth the cost. By outsourcing your company’s books, you can save money on taxes, make better use of your and your team’s time, and gain the perspective you need to more effectively communicate about your organization and your vision.
Here are a few reasons outsourced accounting is worth the cost:
5 Common Ways Small Businesses Screw Up When Filing Their Taxes
January 30, 2019 Posted by Celene Robert to Taxes
It’s that time of year again. Tax season. This time, you’re sure you’ve got things under control. Yes, you’re stressed, you have eight different spreadsheets open on your screen, and you’re waiting for yet another government website to load, but you’re almost at the finish line. And after spending hours filling out multiple forms—triple-checking that you’ve made the right estimated payments, tracked the right expenses, and applied the right deductions—you finally file your taxes.
4 Tax Act Changes That Affect Business Owners in 2018
November 16, 2018 Posted by Celene Robert to Taxes, Business Advice
Like so many others in the tax industry, we’ve spent the last 10 months combing through the 100+ page Tax Cuts and Jobs Act (TCJA) of 2017. There are many changes. Some of those changes are still being studied by accountants and the IRS alike, so it’s impossible to detail them all here. But we pulled out the top four changes you should know about the new law that could affect your 2018 returns.
QuickBooks vs. inDinero: Which Is Right for Your Business?
October 12, 2018 Posted by Celene Robert to Taxes, Accounting, Business Advice
If you’ve made it this far, I assume you’ve done your research on QuickBooks alternatives and are thinking about buying inDinero. So the next logical question is, “how does QuickBooks compare to inDinero?”
Great question, self! The difference between QuickBooks and inDinero is a topic we run into frequently in our conversations with founders. Outside of those conversations, there’s no shortage of blog articles, Quora posts, and side-by-side reviews attempting to provide answers as well.
Let’s settle the question for good.
Start Hiring Sooner—the IRS Will Pay You To Do It
September 07, 2018 Posted by Celene Robert to Taxes, Accounting, Business Advice, Payroll, Business, Startup Tips
Hiring? If you run a startup, you probably should be. Job growth is up, unemployment is down, and our country’s already competitive labor market is on track to tighten even further in the coming months.
Long story short: now is the time to focus on employee recruitment and retention. Fortunately— for once—you can count on the Internal Revenue Service for help. Numerous tax credits cover costs associated with hiring. In fact, the United States tax code is full of benefits and incentives aimed at helping emerging companies like yours create jobs. Check out a few ways the government will literally pay you to hire people:
What Could Your Startup Accomplish With an Extra $250K in 2019?
August 16, 2018 Posted by Celene Robert to Taxes, Accounting, Business Advice, Business, Startup Tips
A quarter of a million dollars could transform your startup. Or it could buy you a vintage Taco Bell hot sauce packet. No joke—as of this writing, that is a genuine listing on eBay: one unopened pouch of Taco Bell hot sauce, circa 1984–1992, priced at exactly $250,000.
If you can think of better ways to spend $250,000 (or if collecting expired condiment packets is truly your definition of Living Más—I won’t judge), you should consider claiming the United States Research Experimentation Tax Credit, commonly referred to as the R&D Tax Credit.
Why Location Matters When Filing Business Taxes
July 20, 2018 Posted by Melissa Hollis to Taxes, Business Advice
Where you do business says a lot about your company. If you’re a clothing shop in Waikiki, you probably have to keep your bikinis and boardshorts stocked all year round. If you’re a therapist in New England you might find your busy season ramps up in November due to seasonal depression. But no matter what you do where you do it affects how you file your taxes.