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jamaal-solomon

Small Business Taxes with Jamaal Solomon

 

 One of the most confusing aspects of starting a small business are the taxes involved.  We get some expert help from Jamaal Solomon.

Small business taxes are one of those things best left to professionals, like surgery or dentistry.  Sometimes the money you would save trying to DIY it is not worth the aggravation and resulting mess.

So many acronyms, LLC, S Corp, C Corp.  We just want to do things legally while paying the least amount of taxes possible.  Small business taxes are not one size fits all.  Each case has to be handled on an individual basis.

One piece of advice Jamaal has for everyone is not to wait until April 15th to see a tax consultant.  That is a bad time to find out that you should have been setting aside money quarterly to pay the tax bill.  And do everything like you’re going to be audited tomorrow.  Sitting in front of an IRS agent is no time to realize that you played too fast and loose with the legalities.  But remember, the difference between creative and legal is a fine distinction.  And the more money your business makes, the more creative you can get.

Congress makes the tax laws, not the IRS.

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Put all of your business expenses on a company credit card, never pay cash.  Cash transactions are almost impossible to back up during an audit and will set off all kinds of alarm bells with the auditor.

Small businesses are like snowflakes, no two are alike.  That’s why it’s important to seek out a reliable tax professional to help walk you through the mine field.

 Show Notes

The Tax Factor:  Jamaal’s blog to help readers with small business taxes.

JS Tax Corp:  Jamaal’s company to help small business owners prepare their taxes.

LMM Tool Box:  Everything you need to manage your money.

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  • jb1907

    My wife pays more in taxes than I make. I hate paying the IRS each year.

    • When Laura was working full time that was our situation in reverse.

  • jb1907

    Creating expenses just to have a tax deduction is not smart. You don’t need an LLC to run a podcast. You have like a 0% chance of being sued. A sole proprietorship will allow you to save a ton of money, but that company has to have the revenue in order for you to save.

    • It can’t be a sole prop because it has both Matt and I in it. We won’t being creating expenses as much as expensing existing spending.

      I am a bit concerned with being sued being that we’re talking about money and the stock market. I’d rather be safe than sorry here.

      • jb1907

        Giving advice on a podcast isn’t the same as actually investing someone’s money. Just put a disclaimer on your podcast. Ric Edelman has one at the beginning of his show. Check it out. http://www.ricedelman.com

      • Andrew

        Maybe have Matt change that tacky ending he recently put in with a tacky disclaimer about how this is not investment advice but money management advice or something?

      • jb1907

        I also don’t understand why you or matt ( I got lost) thought hourly employees don’t get benefits? Maybe part time people don’t get full benefits and consultants don’t get benefits, but every job I ever had working full time hourly, I got benefits. Wal_mart full time employees working hourly get medical benefits. They might not be able to afford it, People that are salary in the accounting field work 70-80 hours a week during tax season or other busy seasons, but at my wife’s firm, their salary is reflective of those busy times so they might make $50,000, but if they worked hourly, it might come out to $40,000 and they could get up to $50K with overtime. I would much rather be salary.
        FYI, I am salary, but I do have to fill out a time sheet every two weeks and if I work 41 hours, I can bank that hour for vacation time.