Latest Posts on Megan Hughes

Are Corporations Too Old-Fashioned?

We talk a lot about using LLCs these days, so much so that people ask us, “Why use a Corporation at all, if LLCs can do it all and more?” Is there a place for Corporations still? I think the answer is definitely “yes.” I can think of several occasions where I will reach for Corporation Articles, instead of LLC formation documents.

1. The company intends to go public. Securities laws in the United States (and most... Read More »

2. How to Safely Form Your Own LLC

   December 28, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 2 Comments
   

   There are hundreds of companies who will help you form your LLC for little money. Plus, the paperwork is readily available on Secretary of State websites and on the Internet. But is it safe to do it yourself? There is no clear “always do this” answer. It really depends on the situation. For example, how much experience have you had in setting up your own businesses? If you’ve had multiple businesses over the years, you’re probably... Read More »

3. 3 Steps to Planning Your Next LLC

   December 27, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 2 Comments

   Using Limited Liability Companies (LLCs) to help you protect your assets and save your tax dollars is nothing new. Accountants, attorneys, financial planners, tax strategists and more have been telling you about one method or another for years now. But even within this field things have changed. Ideas that were once regarded as tried and true have been surpassed by new concepts. Legal challenges have made some LLC structures less appealing and less safe. Changes... Read More »

4. Was 2010 a Better Year Than You Thought?

   December 21, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 2 Comments
   

   I don’t know if it’s just our clients bucking the trend, or a sign of disconnect between mainstream media and business owners, but a funny thing happened in 2010. People made money. How much they made varied from person to person. Some clients reported modest increases in their income, while others hit home runs, but still, the message we got from our clients was pretty consistent: 2010 was, at the end of the day,... Read More »

5. The new 1099 Requirement you MUST comply with in 2011

   December 16, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 20 Comments
   

   Real estate investors take note: January 1, 2011, is the starting date for new 1099 Reporting rules. Effective January 1st, you must track payments you make to all businesses and individuals that you buy services from. Once you have paid $600 or more to any one business or person in connection with any kind of rental property expense, you’ll need to report those payments to the IRS, and issue each person or business a form 1099-MISC... Read More »

6. Have You Missed Your Corporate Formality Deadline?

   December 14, 2010 | Posted in Megan Hughes, USATaxAid's Blogs
   

   It’s the end of the year! I’m busy following up with my clients who have filings that are coming due and trying to make sure that everyone has their Minutes done and their Corporate Records in order. Why? Because if you’re audited or sued, your Minutes Book is the FIRST place an attorney or an auditor is going to look for evidence of non-compliance with the rules. Here’s a quick 3-step test to see if... Read More »

7. Are You Ready For The Big Payroll Tax Deposit Change?

   December 10, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 3 Comments
   

   The IRS is changing the rules in a BIG way, when it comes to payroll and corporation tax deposits. Are you going to be ready for this new change? If not, you don’t have long to get ready! The new change goes into effect on January 1, 2011. I got a letter from the IRS today that really surprised me. It said that starting on January 1st, I was no longer able to make manual payroll... Read More »

8. Too Late for California Corporations?

   December 8, 2010 | Posted in Megan Hughes, USATaxAid's Blogs
   

   December’s always a crazy time for me. We’re working through all the last-minute strategies with clients, and trying our hardest to get everything implemented before the end of the year. After all, having a tax strategy completed, and showing you the $XX thousands in savings won’t happen unless you actually take the follow-through steps needed. In many cases that involves getting a business structure set up. The only problem with that is that we’re simply... Read More »

9. The 1099 Credit Card Payment Exception

   November 25, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 5 Comments
   

   We’ve been talking about changes to 1099 reporting this week. Monday we covered the new 1099-K requirements that your merchant processers need to follow. Tuesday we talked about the new 1099-MISC procedures that business owners and landlords/property owners have to adopt beginning in January, 2011. And now, to confuse things a little further, we’re going to talk about when these new 1099-MISC requirements don’t apply. The IRS is well aware that the changes to 1099-MISC mean an... Read More »

10. Big 1099 Changes in 2011 for Business Owners and Rental Property Owners

    November 24, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 2 Comments
    

    Beginning in January 2011, if you pay any one person or company more than $600 in a year to provide you with either goods OR services, you’ll need to track that information and issue that person/company a 1099-MISC in 2012. You can thank the Patient Protection and Accountability Act (PPACA) passed in March of 2010 for this new rule. Under the old rules, you only provided 1099-MISCs to service providers who met the $600+ threshold, and... Read More »

11. 2011 Means Major Changes in 1099 Reporting. Are You Affected?

    November 23, 2010 | Posted in Megan Hughes, USATaxAid's Blogs | 2 Comments
    

    We’re about to see a huge shakeup in 1099 reporting, beginning next year. This week we’ll be telling you about what to expect, and how to begin tracking information you’ll need. First up, the 1099-K. This one was enacted back in 2008, as part of The Housing and Economy Recovery Act, and impacts everyone who accepts credit cards or other forms of payment (PayPal, etc.) Any credit card processer that processes debit cards, credit cards, gift... Read More »

12. Can Your Business Escape Internet Tax Nexus?

    November 17, 2010 | Posted in Megan Hughes, USATaxAid's Blogs

    Yesterday we talked about the Amazon law, and how states like New York, Rhode Island and North Carolina use it to try and bring your business inside state lines for tax purposes. However, in order to make state laws comply with federal laws on interstate commerce, each state put some “get out” language into its nexus law. The question is, can this “get out” language apply to you? Perhaps it can, if you can meet... Read More »