Online Sales and Physical Presence Nexus

All of the energy and focus on the Marketplace Fairness Act (MFA) has lulled many online sellers into a false belief that they do not need to collect retail sales tax on their online sales until Congress takes action on the MFA. What many online sellers forget is that states can still require online sellers to collect retail sales tax if the online sellers have physical presence nexus in a state.
Read More

The Independent Contractor Ranks Are Growing

The number of workers identifying themselves as “independent contractors” is growing in the United States. In 2005 the U.S. Bureau of Labor Statistics determined that the number of independent contractors rose from 6.4% of the workforce in 2001 to 27.4% of the workforce by 2005. In 2010, Navigant Economics claimed the following:
Read More

S Corp vs. LLC: Simple as Choosing Salt or Pepper?

When choosing an operating entity for a company, it is very important that we thoroughly research the options available. Your business can be a sole proprietorship, a partnership with someone else, a single member LLC, a pass-through entity like an S Corporation or it can be a C corporation.
Read More

Year End Planning: Payroll

Doing your last payroll for the year is an important time to make sure you have a tax plan in place. That payroll is often the last cash transaction for the year; your last chance for tax deductions.
Read More

Business vs. Hobby

Many taxpayers engage in activities they enjoy and do it for a business purpose. Whether the IRS considers it as a business or hobby has important income tax implications.
Read More

Independent Contractor Versus Employee?

Is it better to be an independent contractor or an employee? For a small business owner (SBO), the question mostly is how to determine what business relationship exists between the person providing the services & the SBO, and if that relationship is that of an independent contractor or an employee.
Read More