taxes

LLCs often pay less in taxes due to their pass-through taxation structure, allowing profits to be taxed only once at the owner’s individual rate. With flexible tax classification options, deductible business expenses, and the ability to offset other income with business losses, LLCs can strategically reduce overall tax liability compared to corporations.

Wondering how much federal income tax you'd owe on a $55,000 salary? This guide breaks down the tax brackets and walks you through a simple step-by-step calculation—plus how deductions impact what you actually pay.

Businesses typically pay taxes on profit, not total sales. Profit is calculated by subtracting business expenses—like rent, materials, and wages—from total sales revenue. Tax authorities assess income taxes based on this net income, not the gross revenue earned. Understanding this distinction is crucial for accurate tax planning and compliance.

From a tax perspective, both sole proprietorships and LLCs offer pass-through taxation, but LLCs provide more flexibility and potential tax advantages—such as electing S-corp status to reduce self-employment taxes. Sole proprietorships are simpler and cost less to maintain, while LLCs offer limited liability protection and broader deduction opportunities. The better option depends on your income level, business risk, and growth plans.

Deciding between an LLC and a sole proprietorship? Learn how each business structure affects your taxes, liability, and flexibility. Explore key differences to choose the best option for your needs.

The IRS uses various tools to detect unpaid taxes, including income matching, audits, and information sharing. While not every case is caught immediately, failing to pay taxes can lead to penalties, interest, and legal issues.

Wondering how much you’d owe in federal income tax on $200,000? Here's a breakdown using the 2022 tax brackets for a single filer, plus an explanation of how marginal tax rates apply to your income.

Business taxes can be overwhelming, but understanding the basics helps you stay compliant and save money. Learn how taxes work for different business structures, including income tax, self-employment tax, deductions, and more.

Looking to minimize your business tax burden? Several U.S. states don’t impose corporate income tax—but there may still be other taxes to consider. Learn which states offer the most tax-friendly environments for businesses.

Zelle does not report transactions directly to the IRS, but that doesn't mean you're off the hook for taxes. If you use Zelle for business purposes, you're still responsible for reporting that income. Learn how Zelle fits into tax rules, what banks are required to report, and why accurate recordkeeping is essential.

Certain actions and inconsistencies on your tax return can increase your chances of being audited by the IRS. Common audit triggers include high income, large deductions, reporting errors, and unreported income. Learn what the IRS looks for—and how to avoid red flags.

The IRS can access business bank account information under certain legal conditions, such as audits, subpoenas, or when financial institutions report specific transactions. Learn what triggers IRS scrutiny and how to stay compliant.

No, the IRS does not require paper receipts for business expenses—as long as you have clear, accurate documentation. Digital receipts, bank statements, and invoices are all acceptable forms of proof for tax purposes.

Small businesses can simplify tax preparation by effectively separating and organizing receipts. Learn practical tips such as using separate business accounts, digitizing receipts, categorizing expenses, and employing accounting software to keep your financial records clear and tax-ready.

While some tax deductions can be claimed without receipts—such as the standard deduction—most itemized and business expenses require proper documentation. Keeping accurate records like bank statements and receipts is essential to support your claims and avoid issues during an IRS audit.

Yes, under certain circumstances, the IRS (Internal Revenue Service) has the authority to collect taxes owed by a limited liability company (LLC). The IRS can take various actions to collect unpaid taxes, including: Tax Liens: The IRS may file a federal tax lien against the LLC’s property, including real estate, personal property, and financial assets. A tax lien is a legal claim to the taxpayer’s property as security for the tax debt. Bank Levies: The IRS can issue a bank le

Yes, the IRS can go after an LLC if it fails to meet its tax obligations. While LLCs offer limited liability protection for owners, they are still responsible for payroll taxes, income reporting, and other federal tax requirements. Learn how the IRS enforces tax collection, what risks LLCs face, and how to protect your business.

The IRS typically cannot pursue your LLC for your personal tax debts, as the LLC is a separate legal entity. However, exceptions exist—especially if you've mixed personal and business finances or failed to meet payroll tax obligations. Learn when the IRS can pierce the LLC's protection and how to avoid personal liability.

Discover the most tax-efficient strategies for paying yourself from an LLC, including owner’s draws, guaranteed payments, salary options, and fringe benefits. Learn how combining these methods with retirement contributions can optimize your tax situation.

Yes, some LLCs may qualify for a 20% tax deduction under the Qualified Business Income (QBI) Deduction, also known as Section 199A of the Tax Cuts and Jobs Act. This deduction applies to eligible pass-through entities, including LLCs, and allows business owners to deduct up to 20% of their qualified business income—subject to income thresholds, business type, and other IRS criteria.