February 13, 2024 Last Edit: July 21, 2024
CPA expert joins NFIB’s webinar to answer tax questions
NFIB’s webinar Ask the CPA: You have tax questions – we have answers! provides a realistic and informative take on small business tax planning during the 2024 season. Micah Fraim, CPA and best-selling author, joins a live Q&A and discusses tax questions on a variety of topics:
Q&A
- Sales Tax
Q: We have a business address but are mobile. Do we need the sales tax information for our central business location or where we are conducting business?
A: “Typically the origin of where your base of operations are – Taxjar.com is a good resource.”
- E-filing
Q: If we have more than 10 people on our staff, do we need to mail tax documents in or can we e-file?
A: “Where I would go with that is e-file. It is more efficient. Gives you a concrete record.”
- Business Structures
Q: Are there tax advantages for a rental or property management to create two entities: an LLC as the property owner or S-Corp as a management company?
A: “Not usually. Typical rental income is not subject to self-employment tax. Any profits are usually subject to that. S-Corp breaks it up into separate categories.”
- LLCs
Q: We are currently a single-member LLC but will be adding another owner who will receive a salary. Will it require filing as an LLC S-Corp with the IRS?
A: “There are two ways you could do it. You probably want to elect it as an S-Corp. The alternative is, instead of a salary, to give a guaranteed payment instead. Treat it as sole proprietorship income. I would do the S-Corp election.”
- S-Corps
Q: As an S-Corp, shareholders need an appropriate salary. How do you document that?
A: “This is poorly defined by the IRS. Look at the geographic region. Look at the profession. Look at job postings to see the median salary range. What is the business bringing in?”
- Tax Deductions
Q: What tax deductions are there for small business?
A: “There is an article on our website with a list of 30 deductions.”
For a full list of subjects and every question and answer from this session, watch the full webinar on-demand. For questions that were unanswered or for more information about a topic discussed, feel free to email the NFIB Small Business Legal Center.
Join NFIB’s next webinar, HR and Employment Law Essentials for Small Business – Hiring, Firing and Staying Compliant on Wednesday, March 6, 2024, at 12 p.m. EST with the NFIB Small Business Legal Center’s Executive Director Elizabeth Milito. Milito will cover hiring, employee management, leave, and other essential employment law policies. Attendees will receive NFIB’s Model Employee Handbook.
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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