To Franchise or Not to Franchise
When you consider going into business for yourself, you have three basic choices: Start from scratch, buy an existing business, or look for opportunities to purchase a franchise. A franchise gives you the licensed right to use a service mark, trademark, or business concept. Each franchisee signs an agreement that governs how the business is operated….
Calculating W-2 Wages for Limitations on the QBI Deduction
Recently proposed IRS regulations on the new deduction for qualified business income (QBI) provide guidance on how to compute limitations on the deduction based on W-2 wages. As you’ve probably heard, the QBI deduction is complicated, and numerous rules and restrictions apply. Important note: While new QBI deduction regulations are in proposed form, taxpayers can rely on them until final…
Tax-Exempt Organizations: IRS Provides Guidance on New UBTI Rule
The IRS recently issued much-needed guidance on how tax-exempt organizations should calculate unrelated business taxable income (UBTI) for each separate trade or business they operate. This requirement was part of the Tax Cuts and Jobs Act (TCJA), which was signed into law in December 2017. The new UBTI requirement generally applies to tax years beginning after 2017….
Get the Most Out of Banner Ads
A big part of the success of website marketing can be measured by how often visitors click on your banner ads. Obviously, you want to squeeze the highest conversions out of ad campaigns. The most difficult task in designing a banner ad is using the space wisely. If an advertisement is too vague, it is unlikely to…
Colocation: The Final Frontier
Perhaps you’ve been hosting your own site for years on the server sitting underneath your desk and you’ve had it. The last time it snowed, the power to the office was off for a day and a half, killing your e-mail, website and all intranet communication. So now you are thinking about outsourcing — but after…
When Is Service Business Income Eligible for the New QBI Deduction?
The IRS has issued much-anticipated regulations addressing the new deduction of up to 20% of qualified business income (QBI) from pass-through entities. The QBI deduction was a major piece of the Tax Cuts and Jobs Act that was signed into law in December 2017. The deduction is available to eligible owners of pass-through entities for tax years beginning…
What Makes More Sense? Temps or Full-Timers?
Filling certain positions with temporary workers rather than regular full-time employees sometimes makes sense for a business. But you have to make the decision wisely and comply with federal regulations classifying employees and differentiating them from temporary workers. If you don’t, you may find yourself in court as many other companies have in the past few…
What If You Get Audited?
“Audit” is a word that can strike fear into the hearts of taxpayers. However, the chances of an Internal Revenue Service audit aren’t that high. In 2017, the IRS audited 0.5% of all individual tax returns.1 And being audited does not necessarily imply that the IRS suspects wrongdoing. The IRS states an audit is just a…
How to Get More from Your Business Valuation
When owners and managers receive business valuations, the first thing they typically do is flip to the conclusion: What’s it worth? Often, little attention is given to the analyses underlying the final number, especially if the report was prepared for internal planning or financial reporting purposes. But it’s always a smart idea for the company’s owners and managers…
Gen Z May Change How You Manage Employees
Is your workplace ready for Generation Z? Lately, many demographers and generation-focused marketing experts have been vocal about what they observe in Gen Z, the newest additions to the job applicant pool. With every new generation, there’s an element of rebellion against the attitudes, lifestyles and tastes of previous generations. But to a large extent, the…