Posts Tagged ‘Sole Proprietor’

How to File Your Form 1099’s and Avoid IRS Penalties

moneyDetermine Who Needs to Be Issued a 1099

A Form 1099 needs to be issued to any unincorporated business that you paid $600 or more.  An unincorporated business includes Limited Liability Companies (LLC’S), Partnerships and Sole Proprietors.   Additionally, a 1099 needs to be issued for all legal services rendered irrespective of whether the law firm is incorporated or not.

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5 Easy Steps to Opening a Business in Connecticut


1) Meet With Your CPA and Attorney

The first step is to meet with your CPA and Attorney. Your CPA should be able to review your business plan and provide feedback. Additionally, your CPA should be able to advise you with regards to what entity you should have. Your attorney will get your business registered with the Secretary of State and provide all of the legal documents for your business.

Why Some Small Businesses Should NOT be an LLC

The Limited Liability Company (“LLC”) certainly has become a popular form of business entity.

If there is only one member (owner) then setting up these entities has become a breeze.

Just go online, fill out some forms, pay the registration fee and presto, you’re in business.

Just because it’s easy, doesn’t mean you should do it this way.


 Why an LLC?

4 Reasons All Employers Should Offer a Roth 401(k) Plan


1) The Roth 401(k) Plan Has a Higher Contribution Limit that a Roth IRA

Taxpayers can contribute up to $5,000 per year into a Roth IRA. Taxpayers over age 50 can contribute an additional ‘catch-up’ contribution of $1,000 for a total of $6,000.  To contribute to a Roth IRA you need to have earned income at least up to the amount of the contribution. Earned income is from wages as an employee (Form W-2) or … Continue reading »

The Biggest Loser….The Self-Employed in Connecticut

The Biggest Loser is a TV show where contestants attempt to lose the most weight for cash prizes. Full Disclosure: I don’t watch the show and I have only seen short clips of it. I don’t proclaim to fully understand the show. It appears to me however the biggest loser has nothing to do with losing weight. It’s the self-employed in Connecticut. They are losing far too much to income taxes. And they certainly aren’t getting any cash prizes … Continue reading »

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