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What Are the Tax Mistakes New Connecticut Business Owners Make?
Quick Answer: Some of the biggest tax mistakes new business owners make include using personal credit cards for business expenses, guessing on startup cost write-offs, and failing to keep track of receipts for deduction proof.Key Takeaways:Opening a...
New First Time Abatement Rules for Connecticut Taxpayers and Businesses
Quick Answer: The IRS’s new AEP program expands First Time Abatement by automatically removing certain penalties for eligible taxpayers who meet the three-year compliance-history rules. For eligible 2025 tax-year returns and 2026 quarterly filings, that can...
What Tax Do You Pay When You Sell A Business Based on Your Connecticut Business Structure?
Quick Answer: Pass-through entities (LLCs, S corps, sole proprietorships) pay a single tax layer, typically 15% to 23.8% on goodwill and up to 37% on inventory and equipment. C corporations face double taxation near 40% on asset sales, unless structured as...
What Is An Accountable Plan For Connecticut S Corp Owners?
Quick Answer: An S corp Accountable Plan is a formal reimbursement arrangement that allows your business to repay you tax-free for out-of-pocket overhead like home office, cell phone, and vehicle expenses. By converting these outlays into direct corporate...
The Rules of How to Fight an IRS Audit Appeal Are Now In Your Connecticut Business’s Favor
Quick Answer: The Supreme Court recently stripped the IRS of its automatic advantage in legal disputes. Because judges now review tax rules independently, the agency faces a much higher risk of losing in court, giving you strong bargaining power to negotiate...
What Are the Disadvantages to Sole Proprietorship for Growing Connecticut Business Owners?
Quick Answer: The primary disadvantages to a sole proprietorship for growing business owners are unlimited personal liability and a mandatory 15.3% self-employment tax on 100% of net profit. Once annual net profit exceeds $40,000, remaining a sole...
What Qualifies For Research and Development Tax Credit Claims For Connecticut Small Businesses?
Quick Answer: Your small business qualifies for the R&D tax credit whenever you pay U.S. wages, contractor fees, or supply costs to overcome technical roadblocks while building or improving products, custom software, or internal processes. By working...
How To Separate Personal And Business Expenses Faster For Connecticut Business Owners
Quick Answer: To cleanly separate personal and business expenses, set up dedicated business accounts, automate your owner payouts, and use smart accounting tools to capture purchases in real time. Building this automated system protects your write-offs...
IRS Tax Debt Resolution Strategies: How Connecticut Parents Can Safeguard Trump Accounts
Quick Answer: The IRS cannot directly seize money in your child's Trump Account because the minor is the legal owner and funds are locked until age 18. However, moving cash from a bank account tied to an active tax lien triggers transferee liability,...