Archive for October, 2007
When should you hire a consultant?
You should NEVER hire a consultant if you don’t already know what you need. You should hire a consultant for one of two reasons. Either they can do something that you cannot do for yourself, or they can do something faster and better than you can do it yourself. Until you can [...]
Can I deduct my health care costs?
Health care premiums can be deducted as ordinary and necessary expenses of a business – as employee benefits. To qualify, the health insurance must be in the name of the company. To deduct other health care costs, small employers (especially sole owner/operators) may want to establish a Section 105 plan. With a [...]
How do I know if I should classify workers as contractors or employees?
The IRS has been really looking closely into this issue in recent years. There are very specific guidelines for classification. The IRS published a classification guide called the 20 Factor Test.
Basically, the issues resolve around control. Who controls the workers behavior? In other words, are there set hours? Who controls how the work is performed? [...]
Can I pay myself a salary if I own a LLC or a partnership?
No. Partners in a partnership receive their income from the profits of the organization. The profits are taxed to each partner via K-1 form. A partner can received a “Guaranteed Payment”. A Guaranteed Payment is a payment made to a partner for services or for the use of money. The payment is paid regardless of [...]
