Practical guidance to help small business owners make smarter financial decisions — straight from our desk to yours.
Actionable strategies from Michael Gonzalez, Enrolled Agent — to help you reduce your tax burden and stay compliant year-round.
Open a dedicated business checking account and credit card from day one. Commingling funds is one of the most common mistakes small business owners make — it creates bookkeeping nightmares and raises red flags in an IRS audit.
The IRS allows deductions for ordinary and necessary business expenses. Keep receipts for everything — meals (50% deductible), mileage, home office, equipment, software subscriptions, and professional services. A shoebox of receipts is better than nothing, but accounting software is far better.
If you expect to owe $1,000 or more in taxes, you are required to make quarterly estimated payments (due April 15, June 15, September 15, and January 15). Missing these payments results in underpayment penalties — even if you pay in full at tax time.
Self-employed individuals can contribute to a SEP-IRA (up to 25% of net self-employment income, max $69,000 for 2024), a Solo 401(k), or a SIMPLE IRA. These contributions reduce your taxable income dollar-for-dollar and build long-term wealth simultaneously.
Operating as a sole proprietor subjects all net profit to self-employment tax (15.3%). Electing S-Corporation status can allow you to split income between salary and distributions, potentially saving thousands in SE tax annually. Consult with us before making any entity changes.
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Practical tools to help you stay organized, prepared, and informed throughout the year. Contact us to receive any of these resources directly.
A comprehensive list of documents needed for your personal tax return — W-2s, 1099s, deductions, and more.
Everything your business needs to bring to tax season — income records, expense categories, payroll, and entity-specific items.
Calculate your quarterly estimated tax payments to avoid underpayment penalties. Includes 2024 due dates and safe harbor rules.
Understand the exclusive-use requirement, calculate your deductible square footage, and choose between the simplified and regular methods.
Standard mileage rate vs. actual expense method — which is better for your situation? Includes a mileage log template.
What to do — and what not to do — when you receive an IRS audit notice. Includes a timeline and documentation checklist.
Reading about tax strategy is a start — but working with a top 1% Enrolled Agent is where the real savings happen. Schedule a free consultation today.