Episode Details

When is it finally going to be time to hire a tax professional for your small business?

Well, it depends on:

How hands-on you want to be?

How strong your background is in understanding taxes in general?

And of course, what can you afford?

To help you answer these questions I'm excited to introduce you to Bethany Prignano

Today we cover:

Estimated taxes and how to know if you might need to pay quarterly taxes in advance. This is pretty hard to the average person to figure this out on their own.

When does it make sense to become an S Corp?

In becoming an S Corp owner the savings come from you getting to put yourself on payroll and deduct your wage and payroll taxes as opposed to being an LLC on a schedule C or a sole proprietor where your ending profit is essentially taxed at the individual's rate and the self employment rate. You just don't get the benefit of the expense off your wage or payroll taxes.

It's recommended to make the shift from LLC to S Corp when you hit the $45,000 net revenue mark.

Common expenses that people forget:

Home office space

Phone cost

Milage

Common expenses people aren't sure about:

Can I deduct beauty expenses?

Can I deduct my coffee if I want to work from a coffee shop?

Can I deduct childcare?

We also cover best practices to follow in case you're ever audited. Always make sure you could explain your expenses. The peace of mind this brings will be well worth it!

Reach out to Bethany Prignano:

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Website

Get Comfy with QuickBooks

https://erikamillard.com/get-comfy-with-quickbooks

Learn more about bookkeeping help from Erika here:

https://erikamillard.com/ 

Learn more about the mini course Erika mentions here:

https://erikamillard.com/budget 

Don't forget to download the free Monthly Bookkeeping Checklist:

https://erikamillard.com/bookkeeping-checklist