10. Help! I’m Starting a Business

Help! I’m Starting a Business

Welcome to Questioning Your Cents where you can get your real-world, pragmatic tax & financial advice for business owners, entrepreneurs and independent contractors.

We are your host Kevin Molen and Charles Steinmetz. Our job is to help education you on how to manage your money and save taxes. In this episode, we will discuss tax and financial considerations when starting a business.

 

Important Points:

Intro

Sole proprietor vs. multi member business differences

Why are you starting a business?

Most business owners are skilled service providers

Are you good at “business” or just the product or service you provide?

How are businesses like dishes?

Why you need to know your financial numbers

Do you have to do everything in your business? No!

Work your strengths and hire out your weaknesses

Do you need an LLC? When should you set on up?

Why do people set up an LLC? 1. My friend told me to 2. To get a tax ID number 3. Legitimacy 4. Liability protection

Does an LLC truly give me legal liability protection?

What are the major types of businesses?

  • Schedule C or Sole Proprietor
  • Partnership
  • S Corp
  • Corporation

How are different businesses taxed?

How do self employment taxes work?

What is a pass through entity?

Partnership have more flexibility but there are still self employment taxes

S Corps normally have preferential tax treatment, but more hoops to jump through

What is double taxation for C-Corporations?

When is it worth it to set up an S-Corp?

How do I pay employees?

What is the difference between an independent contractor and an employee?

New 2020 1099 form for independent contractors 1099 NEC

Why you shouldn’t mix personal and business expenses

Why is a good paper trail needed?

Is it better to pay more in taxes or be more profitable?

Comfort Zone:

Can I still deduct charitable contributions?

5 types of itemized deductions: 1. Medical expenses 2. Sales tax 3. Property tax 4. Mortgage interest 5. Charitable donations

Ouro

 

Contact us:

info@molentax.com

281-440-6279

 

Find us on social media:

https://www.facebook.com/molentax

https://www.instagram.com/molen.tax/

https://www.youtube.com/channel/UCTHFFst-BRli8M_aTyXhAuw

https://www.linkedin.com/company/molen-&-associates

https://twitter.com/molentax

https://www.molentax.com

http://questioningyourcents.com

 

Check out this episode!

The Molen & Associates Difference

Mike Forsyth

“Super helpful and timely. This is our first year with them and we look forward to trusting them with our taxes and business books for years to come.”

Caitlin Daulong

“Molen & Associates is amazing! They run an incredibly streamlined process, which makes filing taxes a breeze. So impressed with their attention to detail, organization, and swift execution every year. Cannot recommend them enough!”

Sy Sahrai

“I’ve been with Mr. Molen’s company for few years and I felt treated like family respect and dignity. They are caring, professional and honest, which hard to find these days. Love working with them.”

Should I Open an HSA?

Should I Open An HSA Account? Are you considering a Health Savings Account (HSA)? If so, it is vital to understand what exactly an HSA entails. With this guide, you'll learn all about it: the advantages of an HSA and how it can help you manage your medical expenses....
Read More

Personal Finance Tips for Young Adults

As someone who has been working for most of their life, I wish there was someone out there who had shown me the correct way to save money for my future. Now that I am in my 30s, I have been getting better at saving money, but there are some personal finance tips that...
Read More

How to Track Expenses

There are many different methodologies, tools, tips, and tricks for tracking expenses, and it ultimately depends on your lifestyle and how actively and accurately you want to track them. This is information I’ve pulled from other sources and compiled into a few...
Read More

How To Accurately Record Commuting Mileage and Increase Tax Deductions

Increase Tax Deductions With the Business-Mileage Rule Using the Business Mileage tax deduction can be tricky. There are lots of situations that count while others do not. We don’t like commuting mileage. You should dislike it, too. It’s personal. It’s not deductible....
Read More

Bookkeeping 101

As a new business owner, you will certainly have some responsibilities you won’t be able to avoid. One of those non-negotiable part of your business is producing financial statements. It can be overwhelming trying to master a topic such as bookkeeping but don’t worry...
Read More

Bankruptcy – Everything You Need to Know

Everything you need to know Filing for bankruptcy protection is considered a statement on your ability to repay your debt to your creditors. Filing for bankruptcy will also put a halt to foreclosure or legal actions against you, and it stops creditors from calling and...
Read More

Top Tax Tips for 2023

Tax Refunds May Be Smaller This Year Plan now to learn these 2023 tax tips avoid surprises in the future! If you’re expecting a tax refund in 2023, it may be smaller than last year, according to the IRS. Your annual balance is based on taxable income, calculated by...
Read More

What is an EA?

Have you ever seen the title EA next to a tax professional’s name and wonder what it means? Or maybe you’re familiar with the title and you’re curious about the differences between an EA and CPA? Either way, in this blog I will be answering these frequently asked...
Read More

History of Federal Income Tax Rates: 1913 – 2021

The United States federal government levies taxes on the income of its citizens and legal residents. The Internal Revenue Service (IRS) is the agency responsible for collecting these taxes.  Federal income tax rates have changed several times since 1913, when the...
Read More

Familiarize Yourself With Tax Terminology

Yes, I know, tax terminology feels like a whole new language. For most people all of tax forms can be even more confusing than a foreign language. What’s the difference between itemized deduction and standard deduction? What’s Income tax?  These words and more tax...
Read More

Request an Appointment Today

13 + 9 =

Call us at

281-440-6279

Pin It on Pinterest

Share This