James E. Heyward CPA Business owners aren’t in business to lose money. So there’s not much to like about a nonprofitable year. For a shareholder in an S corporation, however, a down year can have an upside — the corporate loss may give rise to a personal tax deduction. Standing between an S shareholder and the loss deduction is … Read more
If your company is organized as an S corporation, you may wonder whether it is better to take income from the company as salary or as cash distributions. Of the two options, distributions carry the least tax cost because they are not subject to employment taxes. But that doesn’t mean you shouldn’t take a paycheck … Read more
Ask any small-business owner what he sees as the major challenges to growing his business, and chances are he’ll say: winning more sales. Ask any medium- or large-business owner what her major challenges have been, however, and she’ll probably say: structural growing pains — putting into place the necessary processes and structure to accommodate a … Read more
You started gardening to de-stress, and now your family room is filled with exotic orchids. What began as a hobby has evolved into a side hustle—you’re selling propagated orchids to other enthusiasts. With income flowing in, you wonder if it’s time to treat your orchid-growing passion as a business. Once hobbies generate income, they often … Read more
As a savvy business owner, you understand the importance of having key person life insurance to protect your company in the event that you — or a partner — unexpectedly pass away. The policy proceeds can be used to pay off debts, hire a replacement, or buy time until a decision about the future … Read more
S corporation shareholders have an added reason to worry about their company’s annual performance: It has a direct impact on their own income taxes. How It Works Unlike a regular C corporation, an S corporation usually doesn’t pay federal income taxes itself. Instead, each shareholder is allocated a portion of the corporate income, loss, deductions, … Read more