The Streamlined Sales Tax is an organization that started in 2000 with the goal of finding solutions for the complexity in state sales tax systems. Today there are 24-member states. In light of the U.S. Supreme Court’s decision effectively allowing states to require out-of-state merchants to collect sales tax on transactions within their borders, the activities of the Streamlined Sales Tax are vital to your business. How the Streamlined Sales Tax works Because there are more than 10,000 sales tax jurisdictions in the U.S. when you factor in local sales taxes, and the items (and even definitions of items) subject to […]

That’s the finding of a recent poll from Insureon and Manta — “Small businesses are unprepared for disaster.” Sixty-one percent of small business owners didn’t have a formal business plan, and 31% didn’t know if their businesses could survive a disaster that required them to close down for more than a month; 20% of those having reported a closure never reopened. Disasters can occur at any time for a variety of cases, such as hurricanes in the Southeast, wildfires in the West, tornadoes in the Central States, and even a volcano in Hawaii. I’ve written about disaster preparedness before. But too […]

That’s the admonition to those with or considering a sideline activity if you want good tax results — “Your sideline business better be for profit.” How you choose to spend your time and effort is one thing, but the tax law makes having a profit motive vital these days. Here’s why. Overview of hobby activity rules If you’re in business, you report on your tax return your income and losses (expenses in excess of revenue). But if the activity is merely a hobby (i.e., you engage in an activity that doesn’t have a reasonable expectation of making a profit), then […]

The “pink tax” isn’t a tax levied by the government. It’s the markup of goods and services charged to women versus men for comparable goods and services. On July 26, 2018, Burger King launched a campaign to highlight the pink tax by charging more for a pink box of fries than a regular box with the same amount of fries. This should prompt you to think about whether you’re using gender-neutral pricing. Pink tax rates How big is the problem? According to a study of gender pricing in New York City, women’s products on average cost 7% more than similar products […]

Qualified retirement plans aren’t just for large corporations. There are a number of compelling reasons for small businesses to consider adopting a plan now or revising your current plan. 1. Reduce current taxes I’m sure you know that as an employer you can deduct contributions you make for the benefit of employees (up to annual limits). If you are self-employed, contributions for employees are a deductible business expense, while those for yourself are deducted from gross income on your personal return. And you may also be entitled to a tax credit of 50% of your administrative costs (up to a […]

Certain women from the past have had a tremendous impact on our lives. Here are 5 outstanding women who were born in the month of August and I’d like to give a salute to them. Lucille Ball (b. August 6, 1911) We remember her largely for her role in I Love Lucy (a show that ran from 1951 to 1957 but is still being shown regularly today). But her real claim to claim is that she was the first woman to head a major Hollywood production company, Desilu Productions (she was president and CEO). It produced not only her show […]

If your business nets $50,000 and you qualify for the new 20% business income deduction for owners of pass-through entities, you’ll save $10,000 in federal income taxes. Should you opt to plough this back into your business, here are 10 smart things you can do to improve your business, solidify your workforce, and do good for your community. And all of these suggestions are tax deductible, so you’ll be reaping additional tax savings. 1. Give “spot bonuses” These are payments you make now, rather than at the end of the year or on an employee’s work anniversary. Spot bonuses may […]