Business 

Does my business need a separate bank account?
Yes, definitely.  Don't mix your personal and business funds and expenses.  Keep them separate!

Do I need a federal ID?
Most of the time, but not always.  We need more information before making a recommendation.

Do I need a DBA (Doing Business As)?
Yes, if you want to do business other than in your name.

What form of entity should my company be?
The answer is complicated and depends on numerous variables.  We will give you our recommendation from the list below after assessing with you the factors in your unique situation. 

• Sole Proprietor
• LLC
• S Corporation
• C Corporation
• General Partnership
• Limited Partnership

What are the federal and state requirements to operate a business?
There are numerous factors that must be considered, depending on your unique situation.

What is difference between an employee and a contractor?

• If you outsource labor to another established business, that is a contractor.
• If you hire an individual to assist you at an external location, and they use their own tools and set their own hours, they are a contractor.
• If you have an aunt come to assist you with your customers at your place of business, using your equipment and set hours, your aunt is an employee.
• Employee wages are reported on a W-2 Form.  Contractor wages are reported on Form 1099.
• This is a gray area, so it is important to check with us when you are in doubt.

What kind of record keeping should I use?

• If you choose to do record keeping on a computer we recommend QuickBooks™.  Every year QuickBooks™ continues to make significant and efficient upgrades to their software. There are 3 types of QuickBooks™ applications:  Desktop Version, QuickBooks™ Online and Remote Access.
• If you choose to use a spreadsheet or check register, we can provide you with a chart of accounts and post records using our in-house software.
• We train clients to use the product that best suits their needs.

I can write off everything as a business expense, right? 

• No!  There are many deductions for small businesses to take advantage of, and we will ensure that they are all taken.  However, you cannot take a deduction for everything.
• Example:  We had a client in sales.  He wanted to write off the high-tech and expensive sound system he added to his car because he spends all day in his car.  He must be able to show a business reason for taking that deduction and his own listening pleasure does NOT qualify.  By the way, a friend told him it was deductible.  He didn't check with a professional before he made the purchase.  Guess what happened?

Individual

When should I get my personal tax information to you?
As soon as you think you have received all tax reporting statements.

Can I file an extension?
Yes, however, we need to have all of your tax information prior to the April 15 deadline to help you file an extension.  We must first determine if you need to send money with your extension.

My son worked last summer.  Does he need to file?
Yes, if he received a W-2 and/or earned $600 or more or received a 1099 for $600 or more.

My mother is retired.  Does she need to file?
If her only earnings are social security then she does not need to file.

My daughter, who is 14, has an investment account.  Does she need to file a return?
If her account had stock sales then the answer is, "Yes."  If her account only had dividend and interest income you can report them on your return.



Disclaimer:  The information contained within this website is provided for informational purposes only and is not intended to substitute for obtaining accounting, tax, bookkeeping, or financial advice from a professional accountant.

Presentation of the information via the internet is not intended to create, and receipt does not constitute, an accountant-client relationship.  Internet subscribers, users and online readers are advised not to act upon this information without seeking the service of a professional accountant.

Any U.S. federal tax advice contained within this website is not intended to be used for the purpose of avoiding penalties under U.S. federal tax law.

2800 Regal Road, Suite 105
Plano, Texas
(972) 985-1214
FAX (972) 867-7810

Every Penny Counts