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Orcutt Financial

small business structure

5 Small Business Structures and What They Mean

By Business Advice

Selecting the legal structure for your business is one of the most important decisions you will make as a small business owner. Your business structure will define your company’s legal structure, tax obligations, and compliance requirements. It will also have a significant impact on your personal liability as it relates to your business. A structure that worked well in the early years of your business may not meet your needs as you expand or seek potential investors. Changing your business…

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small business tax planning

9 Tips for Small Business Tax Planning

By Tax Advice

Owning a small business entitles you to numerous tax deductions and credits. To maximize your tax savings, however, you need to understand the rules, keep accurate records, and stay up to date on changing tax codes and regulations. Most small business owners don’t have extra time to devote to these endeavors, so hiring a tax expert is a good investment. Working with a certified tax professional or CPA will ensure your business is taking full advantage of the deductions, write-offs,…

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tax deductions small business

11 Tax Deductions for Small Businesses

By Tax Advice

Small business owners can write off many routine business expenses as tax deductions. Business tax deductions work by lowering your taxable income, thereby reducing the amount of tax you owe.  According to the Internal Revenue Service (IRS), no expense can be deductible unless it is both “ordinary and necessary.” An ordinary expense is one that’s common and accepted in your type of business. For example, if you own a restaurant, the cost of food and other restaurant supplies are an…

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defer payroll taxes

6 Things to Know about Payroll Tax Deferrals

By Tax Advice

Businesses throughout the United States have been negatively impacted by the COVID-19 pandemic. Businesses of all sizes have been forced to close, reduce hours of operation, or lay off employees. In response to these concerns, several state and federal programs were implemented to provide relief to both businesses and individuals. In addition, a presidential order was issued to allow employers to defer certain payroll taxes. Payroll Tax Deferral Programs It’s important to understand that there are two different types of…

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outsource bookkeeping

6 Reasons to Outsource Your Bookkeeping

By Business Advice

As a small business owner, you have many responsibilities. You are the one in charge; everything falls back to you. But that doesn’t mean you have to DO everything. In fact, no one person should be doing all the tasks needed to run the business. Firstly, you don’t have enough time; secondly, you may not have the expertise; thirdly, you may not have the desire. Of all areas required to operate a business, there is one that most business owners…

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early retirement

5 Financial Tips for Early Retirement

By Business Advice

You may love your job and enjoy going to work every single day. Or you may just be going through the motions until the time comes to retire. Either way, most people don’t want to work forever. Even if you love what you do now, you will eventually want to relax and enjoy more leisure time. Making sure you can afford a fun and secure retirement requires careful planning. Regardless of your age, if you are working now you should…

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An Update: IRS Provides More Clarity On 20% Pass-Through Deduction

By Uncategorized

We now have updated guidance on the the Tax Cuts and Jobs Act from the IRS. As many of you know, there had been questions about if and how certain taxpayers—owners, partners, and shareholders in pass-through entities—could claim the 20% deduction on income. The recent guidance clarifies two major things, which we’ve simplified here: 1. How companies with various lines of business can claim the deduction. Instead of having to restructure their business, as many thought they may need to do,…

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Benefit Now, Pay Later: Here’s What to Know About NQDC Plans

By Uncategorized

Qualified” retirement plans include 401(k) and SIMPLE plans. These plans offer tax-advantaged contributions and potential earnings. On the other hand, “Non-qualified” deferred compensation (also called NQDC) plans don’t typically include those same tax advantages, yet they help companies compete for and retain top employees. How so? Here’s one example: imagine an employee has maxed out her 401(k) or 403(b) workplace savings plan. At the same time, she still is in a position where she wants to save more for her…

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Confused About the 2018 HSA Contribution Limits?

By Uncategorized

The IRS recently announced a clarification in a ruling it made regarding Health Savings Accounts (or HSAs). The contribution limit will stay with the original $6,900 limit for family coverage for 2018. Previously, the IRS had announced that the limit would be reduced for this calendar year to $6,850. That may not seem like a big deal, but people who had already contributed were going to face a penalty. Yes, a small penalty, but it still raised quite a few…

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