5 min read
Phantom Income Explained
Phantom income is income that gets allocated to you for tax purposes even though you never received the cash. It shows up most often in flow through...
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5 min read
Does an S Corp Election Actually Save You Money?
There is no income threshold that makes an S corp election automatically worth it. The election works by moving part of your profit out of...
4 min read
How Does Self-Employment Tax Work?
Self-employment tax is the same Social Security and Medicare tax that comes out of a W-2 paycheck. As an employee you pay 7.65% and your employer...
4 min read
LLC Distributions Explained
Contributing your own money to an LLC is not taxable income to the business and not a deduction for you. Taking profit distributions out later is...
4 min read
Why Can’t Your CPA Do Tax Planning Without Good Bookkeeping?
Tax planning depends on knowing what your business is earning while the year is still open. If your books are behind, incomplete, or unreliable,...
4 min read
How Should a Small Business Owner Read a P&L?
How Should a Small Business Owner Read a P&L?
Read it for cost behavior rather than line items. The structure of a profit and loss statement runs...
3 min read
How Do Tax Brackets Work for Small Business Owners?
Tax brackets are progressive, which means only the portion of your income that falls within each bracket is taxed at that bracket’s rate. Moving into...
3 min read
What Clean Bookkeeping Looks Like
Clean books means your balance sheet is accurate, not just that your bank account reconciles. You can categorize every transaction in the bank feed...
3 min read
Are Bonuses Taxed at a Higher Rate?
Bonuses are not taxed at a higher rate than the rest of your income. They are commonly withheld at a higher rate, which is a completely different...
4 min read
From Financial Chaos to Total Control
For most small business owners, financial chaos is a foundation problem. No plan, no real bookkeeping structure, and no advisor walking with them...