There is no bigger potential liability to a business owner than an employee. However, when it is time to hire one, your first steps should be defining the relationship through a well-drafted employment agreement. One essential element to that document should be a nondisclosure agreement (NDA). For many clients, particularly those in the tech sector, […]
A lot of self-employed individuals get upset around tax time when their accountants tell them they owe an extra 15.3% in tax. It can be a bit of a gut punch to those just expecting to pay income tax. Unfortunately, income tax does not cover FICA—Social Security and Medicare. An employee generally splits those taxes with […]
So you have enough business that you need to hire someone to help you run it? That’s great news! You have even found a promising candidate. She is smart, creative, driven, and you know she will help you grow your business. Now you just need to determine whether you have to report her as an […]
The US Tax Court issued an opinion that I think should be considered a win for artists and moonlighters everywhere. Crile V. Commissioner, T.C. Memo. 2014-202. Generally IRC section 183 acts to disallow taxpayers from claiming losses from activities “not engaged in for profit.” It provides a safe-harbor for activities where income exceeds deductions for […]
Welcome back for the second installment. Only the fun stuff from here on out. Corporations Corporations are the granddaddy of modern entities. They are often villianized, but extremely useful. Every state has its own body of corporate law. Some tend to strongly favor shareholders, while some give more latitude to directors and officers. Many large […]
So you’re going to start a company? That’s what we like to hear. Obviously, you have a lot of considerations to balance and choices to make. This is our attempt to make your choice of entity a little bit easier. Let me start by saying that what is best for one might not be the best […]
Choosing a name can be big decision. If you have ever gotten a new puppy, written a poem, or created an online dating account, you may have lost a bit of sweat weighing the pros, cons, and possible connotations of your chosen name. Sometimes the scariest part is thinking that you only get to […]