493 plain-English guides on small business & bookkeeping, each one ending in what to do next.
Page 13 of 21, newest first.
Online sellers on platforms like Amazon FBA, Shopify, Etsy, and eBay face three categories of tax obligations. Covers economic nexus thresholds,.
Small Business & BookkeepingWhen a business partnership dissolves, the tax treatment of liquidating distributions to partners is governed by IRC 731, 732, 736, and 751.
Small Business & BookkeepingPartnership breakups trigger mid-year income allocation, hot asset rules under IRC 751, and potential gain recognition on liquidating distributions.
Small Business & BookkeepingWhen a partnership dissolves, a partner has gain only if cash received exceeds outside basis, but IRC 751 hot asset rules can turn gain into ordinary income.
Small Business & BookkeepingA partnership is a pass-through entity that files Form 1065 and issues K-1s to partners. Formation is generally tax-free under IRC 721.
Small Business & BookkeepingPartnerships (including multi-member LLCs taxed as partnerships) are the most flexible but also the most complex business entity for tax purposes.
Small Business & BookkeepingPartnerships (including multi-member LLCs) are pass-through entities that file Form 1065 and issue Schedule K-1 to each partner.
Small Business & BookkeepingOver 30 states now offer a pass-through entity tax election that allows S-Corps and partnerships to pay state income tax at the entity level.
Small Business & BookkeepingThe pass-through entity tax (PTET) is a state-level election that allows S-Corps and partnerships to pay state income tax at the entity level instead.
Small Business & BookkeepingHow the PTET works: Without PTET (traditional approach): 1. S-Corp earns $500,000 2. Income passes through to owner on K-1 3.
Small Business & BookkeepingIRC 469 prevents taxpayers from using passive activity losses (rental properties, limited partnerships) to offset active income (W-2, business profits).
Small Business & BookkeepingPassive activity losses can only offset passive activity income, not wages or active business income. active income (the three income buckets): | Income.
Small Business & BookkeepingPassive activity losses can only offset passive activity income (IRC 469). Material participation requires 500+ hours per year.
Small Business & BookkeepingThe passive activity loss rules under IRC 469 prevent taxpayers from using losses from passive activities (businesses in which they do not materially.
Small Business & BookkeepingThe IRS classifies real estate investors into three participation levels, each with different tax treatment. Three levels of real estate participation: |.
Small Business & BookkeepingThe most common payroll mistakes are late deposits, misclassified workers, incorrect W-2s, and failure to file Form 941.
Small Business & BookkeepingEmployers must withhold federal income tax and FICA (7.65%) from employee wages, match the FICA, file Form 941 quarterly, deposit payroll taxes on time.
Small Business & BookkeepingPayroll tax compliance is the area where small businesses face the most severe penalties for errors. Payroll tax rates (2025).
Small Business & BookkeepingEmployers must deposit federal payroll taxes (income tax withholding, Social Security, Medicare) through EFTPS on a monthly or semi-weekly schedule.
Small Business & BookkeepingEmployers must withhold federal income tax and FICA from employee wages, deposit them on time, and report on Form 941 (quarterly).
Small Business & BookkeepingThe Trust Fund Recovery Penalty (TFRP) under IRC 6672 makes business owners personally liable for unpaid employee withholding taxes.
Small Business & BookkeepingSmall business owners pay both income tax and self-employment tax (or FICA). Most small business owners focus on their income tax bracket and overlook.
Small Business & BookkeepingEvery dollar of business income faces up to two federal taxes: income tax and payroll tax (also called employment tax or self-employment tax).
Small Business & BookkeepingEmployers are responsible for withholding federal income tax, Social Security tax (6.2%), and Medicare tax (1.45%) from employee wages.