Tax & Accounting

Self-employed business owners (i.e. sole proprietors, partners, shareholder-employees of S corps, and LLC members) generally cannot deduct the cost of their medical insurance or medical and dental expenses, including those paid for family members, as a business expense.

An LLC is unique in that it can be taxed as a disregarded entity, partnership, C Corp or an S Corp. A single member or owner LLC can be taxed as a disregarded entity, C Corp or S corp. A multi-member or owner LLC can be taxed as a partnership, C Corp or S corp.

An LLC is unique in that it can be taxed as a disregarded entity, partnership, C Corp or an S Corp. A single member or owner LLC can be taxed as a disregarded entity, C Corp or S corp. A multi-member or owner LLC can be taxed as a partnership, C Corp or S corp. Unless an LLC elects corporate tax classification by filing Federal Form 8832 (C Corp) or Federal Form 2553 (S Corp) with the IRS when it is formed, a single member or owner LLC is taxed as a disregarded entity and a multiple member or owner LLC is taxed as a partnership.

One approach to calculating intercompany management fees is to analyze the labor being spent on each business and then allocating overhead costs as a percentage of labor to determine a total intercompany fee. Also, there may be a particular legal bill or other unique costs that may be charged directly to a subsidiary or affiliate company in addition to the normal intercompany fee.

In order to obtain a credit or refund, an amended federal or state tax return must be filed within 3 years after the date you filed the original return or within 2 years after the date you paid the tax, whichever is later.

We do not know how the tax status of your sole owner LLC, Sole proprietorship, C corp or S corp, but a vehicle used for both business and personal use (a mixed use vehicle) does not have to be purchased and owned by the business in order for the business to deduct expenses associated with the business use of the vehicle.

We do not know exactly how you recorded the software and patent development costs on your Balance Sheet or whether you amortized any of those development costs, but if you have stopped selling the software, have abandoned any further development or sale, and the software programming is not saleable, then…

When evaluating bookkeepers and accountants, the professional expertise that you require (accounting, tax, and/or general financial advice) will influence the type of professional that you select. Also, as a general rule, the more accounting activities you allow a bookkeeper or accountant to perform, the higher the cost.