For the love of your business
For the love of your business
QUESTION Q: Which startup expenses are tax-deductible for my company’s income taxes? —Tax Savvy CEO ANSWER A: Dear Savvy: According to the IRS, three categories of startup expenses are eligible for deductions: expenses for creating your business, expenses for launching your business, and expenses for organizing your business. Each category consists of different types […]
Read MoreQUESTION Q: How can I protect myself from lawsuits from my employees? —Concerned CEO ANSWER A: Dear Concerned: Although you may not like to think that one of your team would ever sue you, your employees (and contractors) are among the most likely sources for litigation. The most common lawsuits arise when a team […]
Read MoreQUESTION Q: Can a married employee name a beneficiary other than spouse on 401(k) –Helpful Boss ANSWER A: Dear Helpful: It can be very difficult for you, as an employer, to manage a 401(k) retirement plan for your employees properly. Federal law establishes protections for married couples known as “survivor’s rights.” Generally speaking, survivor’s […]
Read MoreQUESTION Q: How are partnerships taxed? —Business Beginner ANSWER A: Dear Business, A partnership is basically a sole proprietorship with multiple owners, and the partners typically share equal responsibility for the business’ assets and liabilities. Like a sole proprietorship, a partnership is not a separate entity from its owners from a tax perspective. The […]
Read MoreQUESTION Q: What is employment practices insurance? — Busy Boss ANSWER A: Dear Busy, An employment practices insurance policy provides protection for lawsuits initiated by your employees. While this is an often-overlooked coverage, it’s actually one of the most important, since employment claims are the one of the most serious threats to your business, […]
Read MoreQUESTION Q: Why is the entity structure you choose for your business so important? — New Business Owner ANSWER A: Dear New, The business entity structure you choose for your new company is of paramount importance. Indeed, your choice of business entity will affect everything from the amount of taxes you pay to the […]
Read MoreQUESTION Q: What is disability insurance? — Risk Manager ANSWER A: Dear Risk, A disability insurance policy pays benefits when you are unable to work because you are sick or injured. Most disability policies pay you a benefit that replaces a percentage of your income when you can’t work due to illness or injury. […]
Read MoreQ & A: QUESTION ______________________________________________________________________________ Q: How can I safeguard my company’s intellectual property when working with independent contractors? —Busy Boss ANSWER ______________________________________________________________________________ A: Dear Busy: Unlike employees, with whom you generally own automatic copyrights to everything they produce while working for you, independent contractors (ICs) typically retain full copyrights to […]
Read MoreQ & A: QUESTION ______________________________________________________________________________ Q: How does a “buy-sell” agreement work? —Curious CFO ANSWER ______________________________________________________________________________ A: Dear Curious: If you share ownership of your business with one or more other people, a buy-sell agreement ensures that upon certain conditions—such as your death or permanent incapacity—the other owners are able to […]
Read MoreQ & A: QUESTION ______________________________________________________________________________ Q: How can I use legal agreements to establish healthy boundaries with clients? —New Business Owner ANSWER ______________________________________________________________________________ A: Dear New: To ensure your clients are aware of your boundaries—and the consequences for breaching them—you can incorporate your boundaries in the terms of your legal agreements. […]
Read MoreQ & A: QUESTION ______________________________________________________________________________ Q: What are some easy ways to reduce my new company’s expenses? —Cost Cutter ANSWER ______________________________________________________________________________ A: Dear Cutter: When running a new business with limited revenue, it’s critical to rein in spending. Some easy ways to reduce expenses include encouraging your team to work remotely, […]
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