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Small Business and LLC’s

Starting and running a small business can be very exciting but at the same time extremely challenging.  Most business owners start a company to do something they love. That passion is required to take on all the challenges that will be faced, but that passion is for the business itself, not for all the recordkeeping and tax responsibilities that business owners are faced with. Proper tax preparation, recordkeeping of your small business tax deductions and money handling is a must.

Small Business Tax Preparation

If you are a sole proprietor or a single-member LLC, your small business transactions will be reported on Schedule C of your personal tax return. As you might know, a single-member LLC is considered a disregarded entity, therefore it is reported on your Schedule C. Our fee for this preparation is typically $200 to $250 depending on how organized you are.

If you and a partner formed an LLC, even if that partner is your spouse, then a separate partnership tax return (Form 1065) is required for most states including VA, DC and MD.  Contact us for more information.

Small Business Tax Deductions

There are several tax deductions available to small business owners. The obvious ones like printer paper and business cards are easy. But what about cell phones? What is the business use of a shared family plan? How about home offices? Meals and Entertainment- is it 50% or 100%? When can a meal be 100% deducted?

Self-employed health insurance and health savings accounts (HSAs) can be tricky, and many small business owners leave money on the table by deducting these on Schedule A versus Form 1040. This little gotcha could cost you over a $1,500 in taxes.

These are the type of things at JBD Tax  will consult with you. Oftentimes the taxpayer or small business owner gets in trouble because he or she did not understand the rules. Once you know the rules and how to apply the rules, owners can take advantage of small business tax deductions without worry or concern.

Fee Structure

  • 1040 EZ $49
  • 1040A $99
  • Most 1040’s $150 to $200
  • Most Small Business or Rental Property $200 to $250
  • Most Estate and Trust Returns $150 to $200.
  • Most S Corporations and Partnerships $500