Latest Posts on Megan Hughes
Your Tax Return is Due but You Forgot to Make Your S or C Corp Election. Now What?
September 3, 2010 | Posted in Megan Hughes, USATaxAid's Blogs, Uncategorized
The tax return doors have burst wide open, with folks rushing to catch the Sept 15th deadline for partnerships and S Corp returns (and C Corp returns, if you have a 3/15 year-end). This is also the time of year that many new business owners start to get letters from the IRS saying (more or less) “We’ve received your return, but have no record of your company making an S Corporation or a C Corporation... Read More »
Stupid Business Stories
August 26, 2010 | Posted in Megan Hughes, USATaxAid's Blogs
One of the things I really enjoy over at the Smart Business Stupid Business website is something we call “Stupid Business Stories.” We ‘fess up to some of our own mistakes, and also invite people to tell us about what happened, why, and the lessons they learned. Here’s just a quick sampling of what we’ve received from readers: When I was 22 I started a telecommunications company. Turn it into a million dollar business in 9... Read More »
Do You Have a Personal Banker?
August 24, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 1 Comment
Does going inside your bank make you cringe? Do you have to steel yourself outside the doors and prepare to spend the next hour or more trying to get something done that seems so simple, yet generates a foot of paperwork and may not even happen at all? I have to tell you, that’s how I’ve been feeling for some time now, and I (thought) I had a great relationship with my business bankers. But... Read More »
MTC: Intials That May Impact Your Business
August 4, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 1 CommentSeems most government agencies love initials, and tax agencies are no different. MTC stands for Multistate Tax Commission, and if you do business in more than one state, you may want to get familiar with it. The job of the MTC is to try and clarify/unify state taxation issues, especially for businesses who operate in more than one state. From your perspective, as a multi-state business owner, you want to pay as little tax as possible.... Read More »
Creating Multiple Streams of Income
July 30, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 12 Comments
Instant gratification. For some people, it’s a lifestyle. For business owners, it can be a trap. I see instant gratification in business terms as a deal or a project that makes you money right now. Nothing wrong with that – we’ve all got to keep the lights on and food in the cupboard. And in the early days, it’s essential. You’ve got a reputation to build. But if you run your business solely on... Read More »
Member or Manager? Which is Better for Your LLC?
July 22, 2010 | Posted in Megan Hughes, USATaxAid's Blogs
There are two kinds of LLC: those managed by all of the members equally, and those managed either by one or more members, or by a third party individual or business structure. When you're trying to determine which one is better for you, the crucial issue to consider is control. The choice of making your LLC member-managed or manager-managed has no bearing on the LLC’s tax election. It doesn’t matter if you’re planning to... Read More »
Basics of an Operating Agreement
July 20, 2010 | Posted in Megan Hughes, USATaxAid's Blogs
Here's an indisputable fact: An Operating Agreement is THE most important document you'll ever prepare for your LLC. No other document is as important to your LLC’s operation. It needs to be accurate, it needs to be complete, and it needs to set out what you want it to say. With a bad, incomplete or incorrect Operating Agreement, you're potentially exposed to liability, increased IRS scrutiny, and more. With no Operating Agreement you're at the... Read More »
The Risky World of Pensions
July 16, 2010 | Posted in Megan Hughes, USATaxAid's Blogs
If you’re fortunate enough to still have a pension, chances are you’re wondering how to rebuild it. Will real estate come back? Is the stock market your best bet today? How about self-directed investing? What’s involved in charting your own pension destiny? There are all kinds of ways to self-direct a pension, and the levels of self-directedness vary. For example, if you’re contributing to a company-sponsored 401(k) plan, your self-direction is likely limited to whatever... Read More »
The Great Nevada Corporation Myth
July 15, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 3 Comments
“Come to Tax-Free Nevada and incorporate your business! Never pay income tax!” Nice try, but it's a fantasy so factually incorrect it’s hard to know where to begin. It’s a permanent point of contention for me, being in the formation and structuring world, to see Nevada STILL being touted as a tax-free state. Here are the facts: FICTION: Forming a Nevada entity means you don’t owe taxes. FACT: Every business formed in the United States and deriving... Read More »
Your Business Can’t Buy Your House
July 14, 2010 | Posted in Megan Hughes, USATaxAid's Blogs
Some people want you to believe that your business can pay your mortgage and all your living expenses. If you’ve heard that claim, be afraid! It’s not true and it’s going to cost you a lot of money. Both Diane and I have seen this idea come through on numerous occasions throughout the years. Create a C Corporation, put your home into the C Corporation, and have the C Corporation pay the mortgage and all... Read More »
Why a $30 Operating Agreement Can Cost You Thousands
July 13, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 1 Comment
If you want to sleep at night, get your Operating Agreement prepared properly. If you don’t care, go cheap, or don’t bother with one at all. Just remember that when you’re writing all the checks. I get lots of clients asking me to take a look at their Operating Agreements. Some are prepared well and get the job done. Others are prepared poorly, and are missing key information. And others still are prepared so wretchedly... Read More »
S Corp Owners Breathe a Little Easier … But Start Planning for the Future
June 25, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 1 Comment
Tax extender legislation has been the hot topic this week (well there was that iPhone thing, too, I suppose). The latest version of the legislation again failed to get enough votes to pass, so for the time being, nothing changes. That doesn’t mean you can assume the idea is gone for good, though. There are so many versions of the bill floating around it’s hard to figure out which was the final version. But, in the... Read More »
