Did you know that there is a tax advantage to taking money out of a C corporation as compensation rather than as dividends? A corporation can deduct the salaries and bonuses that it pays executives, but not dividend payments. If funds are paid as dividends, they’re taxed twice, once to the corporation and once to the recipient. Money paid out as compensation is only taxed once — to the employee who receives it.
If your business occupies substantial space and needs to increase or move from that space in the future, you should keep the rehabilitation tax credit in mind. This is especially true if you favor historic buildings.
Last week, Massachusetts lawmakers Dylan Fernandes and Josh Cutler filed legislation to create a pilot program studying the concept of a 4-day work week.
The Federal Reserve recently announced the launch of FedNow, a new real-time payments service that will enable faster and more secure financial payments for consumers and businesses. This system has the potential to revolutionize how people make payments in the US by providing instantaneous transfer of funds between banks in a matter of seconds, available 24 hours a day, 365 days a year.
With summer right around the corner, you may be thinking about hiring seasonal help for your small business. At the same time, you may have children looking to earn extra spending money. You can save family income and payroll taxes by putting your child on the payroll. It’s a win-win!
If you’re starting a business with some partners and wondering what type of entity to form, an S corporation may be a good fit.
On March 17, 2023, US Senators Maggie Hassan and Todd Young reintroduced their American Innovation and Jobs Act. This bi-partisan legislation promotes innovation by encouraging new and established businesses to invest in scientific research and development (R&D) of new technologies.
These days, most businesses have some intangible assets. The tax treatment of these assets can be complex.
It’s been years since the Tax Cuts and Jobs Act (TCJA) of 2017 was signed into law, but it’s still having an impact. Several provisions in the law have expired or will expire in the next few years. One provision that took effect last year was the end of current deductibility for research and experimental (R&E) expenses.
Under tax law, businesses have a valuable tax deduction – advertising and marketing expenses. Generally, businesses can deduct advertising and marketing expenses that help keep existing customers and bring in new ones.
