The amount of business tax owed to the IRS varies depending on several factors, including the type of business entity, its income, deductions, credits, and other tax-related factors. Here are some key points to consider… Taxable Income –  Businesses are generally taxed on their taxable income, which is calculated by subtracting allowable deductions from their gross income. The tax rate applied to taxable income depends on the type of business entity. Tax Rates – The tax rate

Businesses are typically subject to various taxes, depending on factors such as their legal structure, location, industry, and size. Here are some common taxes that businesses may be required to pay… Income Tax –  Businesses, regardless of their legal structure, are generally required to pay income tax on their profits. The tax rate and filing requirements vary depending on the type of business entity (e.g., sole proprietorship, partnership, corporation, LLC) and the tax laws

Yes, your Limited Liability Company (LLC) can have multiple bank accounts. In fact, it’s quite common for LLCs to maintain multiple bank accounts to manage various aspects of their finances more effectively. Here are some reasons why an LLC might have multiple bank accounts… Operating Account –  This is the primary bank account used for day-to-day business transactions, such as paying expenses, receiving income, and managing cash flow. Payroll Account –  An LLC may have a sep

Using a personal account for business purposes can lead to various complications and risks, both legally and financially. Here are some potential consequences of using a personal account for business… Difficulty in tracking business finances –  Mixing personal and business transactions in the same account can make it challenging to track business expenses, revenue, and overall financial performance accurately. This can lead to errors in financial reporting and budgeting. Limi

“Piercing the veil” refers to a legal concept where courts may disregard the limited liability protection typically afforded to owners of a limited liability company (LLC) or a corporation. Limited liability protection is one of the key advantages of forming an LLC or corporation, as it generally shields owners (members in the case of an LLC, shareholders in the case of a corporation) from personal liability for the debts and obligations of the business. There are circumstanc

In QuickBooks Online (QBO), there are four primary item types that you can use to track different types of income, expenses, and inventory. These item types are… Service –  Service items are used to track services that your business provides to customers. They are typically non-inventory items and are used for invoicing customers for services rendered. Inventory –  Inventory items are used to track products that your business buys, sells, and holds in inventory. They help you

QuickBooks Online (QBO) has certain limitations on the number of users you can have depending on your subscription plan. For example… QuickBooks Online Simple Start- 1 user QuickBooks Online Essentials- 3 users QuickBooks Online Plus- 5 users QuickBooks Online Advanced- Up to 25 users These user limits typically include both regular users and accountants/advisors. If you need more than the specified number of users for your plan, you may be able to add additional users for an