Small Business Tax and Accounting

/Small Business Tax and Accounting

Getting Your Business Off to a Good Start, Part 4: Sales Tax

By | January 18th, 2017|Categories: Small Business Tax and Accounting|Tags: , |

For a business in Iowa, the basic sales tax rate is 6%. Some locations in Iowa also assess an additional 1% “local option sales tax,” which makes the sales tax in that location 7%. Sales tax is not an expense of your business. Instead, it’s a tax you collect from your customers and pass on to the state.

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Why Does the IRS Care So Much About Employee vs. Contractor?

By | January 10th, 2017|Categories: Small Business Tax and Accounting|Tags: , , |

So why does the IRS care so much about employee vs. contractor? Two reasons. One is the penalties they can collect. The other reason is they usually collect more taxes when someone is treated as an employee, because a contractor can take business deductions which directly reduce taxable income.

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Glossary: C-Corporation

By | December 23rd, 2016|Categories: Glossary, Small Business Tax and Accounting|Tags: , |

A C-corporation is a tax term referring to one of two ways a corporation can be taxed.

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Form 8976 — What is It?

By | December 19th, 2016|Categories: Small Business Tax and Accounting|Tags: , , |

Image courtesy of Pixabay.com New federal guidelines have been implemented for 501(c)(4) not-for-profits. The new guidelines require new 501(c)(4) organizations to file a “Form 8976” with the IRS to notify the IRS that the organization is operating as a 501(c)(4). Some existing organizations may also need to file the form. A Google search of Form [...]

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Getting Your Business Off to a Good Start, Part 3: Bookkeeping Systems

By | December 15th, 2016|Categories: Small Business Tax and Accounting|Tags: , , |

When I say “bookkeeping system,” I mean the manner in which you record the transactions that take place in your business.

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