by Leif Jensen | Oct 23, 2024 | Running a Business |
Pay Yourself a Reasonable Salary: As an S Corp shareholder, pay yourself a reasonable salary to minimize payroll taxes and take advantage of lower tax rates on distributions. The IRS requires that salaries be reasonable for the services provided to the company. ...
by Leif Jensen | Oct 21, 2024 | General |
Measurement metrics offer several crucial benefits to small businesses, serving as essential tools for tracking performance, guiding decision-making, and driving growth. Some key advantages include: Improved Decision-Making: By relying on data rather than intuition,...
by Leif Jensen | Oct 16, 2024 | Taxes |
The primary purpose of estimated taxes is to provide the government with a steady stream of revenue throughout the year. This system helps taxpayers avoid large bills at the end of the year by requiring them to contribute as they earn income. By making regular...
by Leif Jensen | Oct 14, 2024 | Taxes |
To calculate estimated taxes, individuals must estimate their total tax liability for the year, including self-employment tax and individual income tax. They then divide this amount by four to determine the quarterly payment amounts. The IRS provides Form 1040-ES for...
by Leif Jensen | Oct 9, 2024 | Taxes |
The U.S. tax system operates on a pay-as-you-earn basis, requiring taxes to be paid as income is received. For employees, employers typically manage this through withholding. However, for those without automatic withholding, such as the self-employed, estimated tax...
