Category: Business

When the owners of a family business are ready to sell, there are many considerations. Among the most important is handling the sale in a tax-wise manner. In most cases, the buyer wants to make a direct purchase of the company’s assets — as opposed to buying all the ownership interests in the legal entity […]

Operating your small business as a Qualified Small Business Corporation (QSBC) could be a tax-wise idea. Tax-free treatment for eligible stock gains QSBCs are the same as garden-variety C corporations for tax and legal purposes — except QSBC shareholders are potentially eligible to exclude from federal income tax 100% of their stock sale gains. That […]

Your business may soon have to comply with new reporting requirements that take effect on January 1, 2024. Under the Corporate Transparency Act (CTA), enacted in 2021, certain companies will be required to provide information related to their “beneficial owners” — the individuals who ultimately own or control the company — to the Financial Crimes […]

The IRS has announced the 2024 optional standard mileage rates used to calculate the deductible costs of operating a vehicle for business, charitable, medical or moving purposes. Background: If you use a vehicle for business driving, you can generally deduct the actual expenses attributable to your business use. This includes expenses such as gas, oil, […]

It would be hard to argue against the notion that almost every kind of business today is data-driven. Without the information you need to run your company — be it financial metrics, marketing demographics or productivity measures — you’d probably fall behind the competition, and fast. For this very reason, “data capture” has become a critical […]

When many business owners see the term “financial reporting,” they immediately think of their year-end financial statements. And, indeed, properly prepared financial statements generated at least once a year are critical. But engaging in other types of financial reporting more frequently may help your company stay better attuned to the nuances of running a business in […]

When your company sponsors a qualified retirement plan, you must comply with complex rules established by the IRS and the Department of Labor. Ignore the rules and your firm could face costly penalties from federal regulators — and plan participants might sue you for mishandling trust assets. This is no time to be a do-it-yourselfer. […]

In many companies, employees drive during the course of their jobs — to make deliveries, visit customers or pick up supplies. In some cases, they use their own cars, which can offer several business advantages, including that you don’t: Beware of Unexpected Situations The Insurance Information Institute notes that business owners often don’t realize the liability […]

Are you considering inviting an employee or an outsider to participate in your existing partnership? Before making any commitments, it’s important for you and the prospective partner to understand the potential federal tax implications. Important: A limited liability company (LLC) with multiple members (owners) is classified as a partnership for federal income tax purposes — unless you […]

Technological advances often become a double-edged sword. For instance, when Eli Whitney invented the cotton gin at the turn of the 18th century, few foresaw how that breakthrough technology would impact slavery. Tragically, after technology reduced the labor of removing cotton seeds, American cotton production became so profitable that demand for slaves soared. From 1790 […]