Getting Ready for Taxes…

This is not the fun part of operating or owning a business whether you have a sole proprietorship, an LLC, a partnership or a S-Corp or C-Corp. There are tons of web pages out there to guide you and confuse you. For me I have myself out there earning money and the LLC and they are treated as separate entities. I do use a professional preparer because of tax law changes and making sure that proper deductions are being taken and all forms are filled out correctly. Also, in case there is an audit, my preparer will go with me or for me. The expense of using a professional is deductible so, I ere on the side of caution. For example, you are no longer able to deduct entertainment expenses, like theater tickets, but you can still deduct up to 50% of a meal and beverages if you take a client out or prospective agent, manager, or collaborator. As long as it isn’t excessively expensive. Here is a link that takes you to the highlights of IRS tax reform changes that affect businesses. Being self employed, no matter what business you are in, means keeping very good records and receipts. What comes in and what goes out. You will need to prove the cost of that new guitar or keyboard, the cost of office supplies, cell phone service, advertising, computer software, membership dues etc. For some great information about being self employed, here is a link to the IRS Self Employed Individual Tax Center. This isn’t entertaining to read but, if you don’t want a costly mistake down the road, it helps to know as much as you can. Ignorance is not rewarded or an acceptable excuse. Good luck!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.