As a recession looms, companies should be thinking about ways to reduce their overhead. There may be no need to take action now, but being prepared to act when necessary is a good strategy. A big cost to companies is payroll, but cuts aren’t easy to do. Employers don’t want to let employees go, although some may be forced to do this. The good news is that there are some ways to reduce payroll costs without downsizing your staff. Yes, these actions may not be welcome, but can help a company get through a recession. Read More

For many small business owners, the holiday season is their peak period for sales in the year. This means long hours and continual problem solving. All of this contributes to stress (as if small business owners don’t have enough throughout the year). According a FreshBooks report, 40% of SMB owners haven’t taken a break in more than a year. There’s lots of advice online about how to handle stress during the holiday season. Here are some ideas for dissipating the stress once the holiday season is over, so you can face the new year. Read More

A partnership is not a taxpaying entity, but files an annual tax return, Form 1065, to report income, deductions, and other items. The same is true for a limited liability company (LLC) with two or more members; it also files a partnership return. Income, deductions, and other items pass through to partners and LLC members, who may be individuals, other partnerships, corporations, or other entities. Partners and LLC members report their allocable share of these items on their own tax returns. (Partnerships only become taxpayers if they’re audited under the centralized audit regime and adjustments are handled at the entity level.) Read More

When you sell inventory, the result is reported currently as ordinary income. You can’t exclude the income and you can’t defer it. When you sell business property at a profit, it usually results in a capital gain. In a handful of situations, you can exclude the gain; it’s not taxable. But generally, gain is recognized and taxed in the year of the sale. Still, there are some good ways to postpone tax on the gain. Consider these options before you finalize any sale so you can be positioned to take advantage of a particular deferral option. Read More

Your business is located in the U.S, all your employees are in the U.S, and all your sales are made within the U.S. So how can you be called a “foreign business”? You don’t have to be doing business overseas to be a foreign business. A foreign business is any company legally formed in one state that is conducting business in another state. For example, you formed a corporation in New Jersey but maintain an office in New York or warehouse your goods there. To the state of New York, due to your physical presence there, you’re a foreign business. What should you do about this? Read More

You’re probably familiar with gas stations offering two rates: one for paying with cash and one for paying with a credit or debit card. Is this a cash discount or a credit surcharge? What’s the difference? Should you choose one or the other? What state laws govern your choices? When the price of gas spiked, some merchants offering deliveries imposed gas surcharges. During the holiday season, cash discounts may save some consumers money. There’s a lot to think about. Here are some considerations about surcharges and cash discounts. Read More

Many businesses are in the midst of their busy season. Nonetheless, there’s a housekeeping matter that shouldn’t be overlooked. One of the requirements for corporations in most states is to have an annual board meeting. Typically, these are held near the end of the year to address certain matters for the coming year. What are some of the reasons you need to hold your meeting, what should be discussed, and how should you conduct the meeting? Read More

As the year comes to a close, all businesses should review their business activities for the year. This is especially critical for startups coming off their first year. Was it a good year? A bad year? Did you accomplish everything you set out to do? What problems did you experience? There are an endless number of questions to be asked. For startups as well as established businesses, a review can help you navigate the coming year. Read More