Form NC-5

In North Carolina, all employees are required to complete the Employee's Withholding Allowance Certificate.

This form helps determine the amount of state income tax that should be withheld from their paychecks.

Form NC-3

It's used to report the total amount of state income tax that was withheld from employees' paychecks throughout the year.

The form is basically a summary of all the income tax that was taken out of employees' pay, and it helps the state keep track of how much money has been collected.

Form NC-4

Upon starting a new job, your employer will hand over a form to you, which requires certain personal details such as your marital status, the number of dependents and eligible deductions

This form helps your employer calculate the accurate amount of state income tax to be withheld from your paycheck

The main objective of this form is to ensure that you neither overpay nor underpay your state income tax during the year.

Form NCUI 101

Businesses are required to file this form every quarter to report the total amount of wages paid and the unemployment taxes owed.

The information on this form is used by the state to determine the amount of unemployment benefits that should be paid to eligible workers.

Form W-2

Form W-2 is a tax form that employers in the United States are required to give to their employees every year.

The form summarizes the amount of money an employee earned throughout the year and the taxes that were withheld from their paychecks.

Employers must provide Form W-2 to their employees by January 31st of the following year, and the employees must use it to file their income tax returns with the Internal Revenue Service.

An accountant is a qualified expert who focuses on managing, categorizing, and interpreting financial data for individuals or organizations.

They deliver services such as bookkeeping, preparing financial statements, and filing tax returns.

A certified public accountant (CPA) is an accountant who has completed specific education, work, and test criteria to secure a license from a state board of accountancy.

Along with handling accounting duties, a CPA can conduct audits, examine financial statements, offer tax planning and consulting services, and represent clients before tax agencies like the IRS.

Take advantage of tax deductions

Businesses can decrease their tax bills by utilizing tax deductions, which are expenses that businesses can subtract from their income, such as rent for office space, equipment purchases, employee salaries and benefits, travel expenses, advertising and marketing expenses, and charitable donations.

By accumulating and tracking these expenses throughout the year, businesses can enhance their deductions and decrease their taxable income.

For instance, if a business made $100,000 but had $20,000 in deductible expenses, their taxable income would reduce to $80,000, reducing their taxes.

It's crucial to note that businesses need to fulfill specific requirements to be eligible for tax deductions and that not every expense is deductible.

Use tax credits

Tax credits can be more advantageous than tax deductions since they directly reduce the amount of taxes a business owes.

Tax credits work as a dollar-to-dollar deduction in the tax amount.

For businesses in North Carolina, various tax credits are available if they do specific things, such as employing new workers, investing in sustainable energy, or undertaking research and development.

However, to be eligible for these tax credits, businesses must complete criteria and adhere to specific regulations.

Maximize retirement plan contributions

To save money on taxes, businesses can maximize their retirement plan contributions.

Employees may allocate a portion of their earnings to retirement plans, such as 401(k)s or individual retirement accounts (IRAs), which brings down their taxable income.

Likewise, employers can contribute to their staff members' retirement plans, which can be tax-deductible for the business.

By offering retirement plans and contributing to them, businesses can reduce their taxable income, ultimately minimizing the taxes they are liable to pay.

Keep track of inventory

Maintaining accurate inventory records is important for businesses to keep track of the products they have in stock.

It helps them avoid making errors while reporting excess inventory as income, which would result in paying more taxes.

Besides, proper inventory management assists businesses in identifying slow-moving or outdated products.

This knowledge helps them make informed decisions, prevent losses, and stay profitable.

Structure the business as a pass-through entity

One way that business owners can lower their taxes is by structuring their business as a pass-through entity.

A pass-through entity is a type of business structure where the business income is not taxed at the corporate level, but instead "passes through" to the owners and is reported on their personal income tax returns.

This can result in lower taxes for business owners because the tax rate for individuals may be lower than the tax rate for corporations.

Additionally, pass-through entities may be eligible for certain deductions and credits that are not available to corporations.

However, it's important to note that the specific tax benefits of a pass-through entity will depend on various factors such as the business's income, expenses, and structure.

Starting your own landscaping business requires some basic equipment, knowledge, and most importantly passion.

You can choose between working under your own name for tax purposes or filing for a DBA to establish a business name.

If you're a sole proprietor, you can use your personal bank account and don't need to obtain an EIN from the IRS.

However, since accidents are a looming risk when using heavy machinery on clients' properties, it's highly recommended to set up an LLC to protect your personal assets from any possible lawsuits.

An LLC ensures that only your business assets can be collected in case your company faces any legal claims.

To establish an LLC, you need to file for an EIN from the IRS website and open a separate bank account.

Keeping your personal and business finances separate is crucial to enjoy the benefits of liability protection that come with an LLC, as failing to do so might make your personal assets vulnerable to court action.

If you're considering funding for your business expansions or capital investments, there are several financing options to choose from.

Some choices are:

1 - Business Loans

Business loans are a reliable way to access funds necessary to expand your business.

In essence, you borrow money from a lender and repay it over time with interest.

Business loans are offered by banks, credit unions, and other financial institutions.

You can use the money to invest in your business, such as purchasing new equipment or expanding your workforce.

To apply for a business loan, you typically need a solid business plan and an excellent credit history.

2 - SBA Loans

SBA loans are available through lenders such as banks and credit unions, and are backed by the U.S. Small Business Administration.

SBA loans have some advantages over traditional business loans, such as requiring lower down payments, having longer repayment periods, and more flexible eligibility criteria

Furthermore, SBA loans typically have lower interest rates, which can be beneficial for small business owners who may not qualify for traditional loans.

3 - Crowdfunding

Crowdfunding is an excellent way to raise money for your business by getting support from a large group of people through an online platform.

These people can be anyone who is interested in your business idea and willing to contribute financially, including friends, family, and even strangers.

Crowdfunding comes in different types, such as rewards-based crowdfunding where supporters get a product or service in return for their contribution, or equity crowdfunding where supporters get a share of ownership in your business.

One of the major benefits of crowdfunding is that it enables you to access a wider audience of potential investors that might not be reachable through traditional financing options.

Additionally, crowdfunding can function as a way to test the market and receive vital feedback from potential customers.

4 - Venture Capitalists

Venture capitalists are investors who fund startups or small businesses that have high potential for growth, in exchange for a portion of the ownership in the company.

They usually invest in businesses with unique products or services, a capable team, and the potential to scale quickly

To secure venture capital funding, you'll need a well-defined business plan, a clear roadmap for growth, and a management team with a proven track record.

Venture capitalists will also typically want to see evidence of customer interest and market traction.

I am skilled in providing financial forecasting and budgeting services for landscaping business owners.

My services involve analyzing your past financial performance, assessing your current financial state, and identifying future goals to create a comprehensive financial roadmap for your business.

I can assist you in identifying possible revenue streams and cost-saving opportunities, as well as developing strategies to enhance cash flow and profitability.

This process may involve creating financial statements, projecting income and expenses, and establishing a budget that aligns with your business objectives.

Furthermore, I can also help you keep track of essential performance indicators (KPIs) to monitor your business progress and make informed decisions.

There are a variety of factors you need to consider in order to know the best way to structure your business.

Schedule a consultation with us and we can discuss further to help you!

Certainly, you can deduct website expenses on your taxes if they are necessary and ordinary business expenses.

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If you're an employer, it's important to give certain tax forms to your freelancers or independent contractors.

The most common tax form needed is Form 1099, which provides a record of the total payment made to the contractor in a tax year.

You have to give Form 1099 to any contractor who made $600 or more during the tax year for work they did for your trade or business.

An outsourced accountant is a professional accountant or accounting firm that a company hires to complete various accounting tasks remotely.

Rather than employing an in-house accountant, the company hires the outsourced accountant to manage financial tasks including bookkeeping, payroll, tax preparation, and financial analysis.

This approach can save businesses both time and money by outsourcing tasks to an expert who can complete them at a lower cost while providing high-quality services.

Outsourcing accounting work also allows companies to concentrate on their primary business operations.

If your business is intricate and needs consistent financial management, it could be advantageous to hire a year-round CPA.

They can offer you continuous financial guidance and support and help you maintain precise financial records, while also preparing and submitting tax returns, and developing strategic plans for your business.

But if your business is relatively simple and you only require financial guidance once in a while, you may be able to work with a CPA as needed or outsource your accounting requirements to an accounting firm.

This alternative is generally more cost-effective than hiring a year-round CPA.

Outsourcing accounting involves hiring an external accounting firm or professional to manage financial tasks remotely.

On the other hand, traditional accounting involves employing an in-house accountant or team to manage financial tasks on-site.

Whether to opt for outsourced or traditional accounting depends on your business's specific goals and requirements.

Outsourced accounting can provide cost savings and access to specialized expertise, while traditional accounting can offer more direct control and supervision.

Tracking business travel expenses typically involves gathering all the necessary receipts and documenting the purpose and particulars of each expense.

This information is then recorded in a tracking system like a spreadsheet or accounting software to generate an expense report.

The report should cover all essential information such as date, location, amount and reason for each expense, and must be claimed for repayment according to the company's expense reimbursement guideline.

To select suitable insurance for your brewery, it's crucial to evaluate your specific risks and insurance requirements.

In general, the types of insurance that could be applicable to your brewery include property, general liability, liquor liability, and workers' compensation insurance.

To receive the best advice possible, you may want to work with an insurance agent experienced in the brewing sector.

They can help you comprehend the necessary types and amounts of coverage you might require.

Additionally, they can assist you in comparing policies and premiums from different insurance providers to find the best coverage for your brewery.

Regularly reviewing and updating your insurance coverage as your business evolves and changes is also essential.

You're going to want to go with a tax accountant that is a certified public accountant, the certification shows they can provide you with reliable and accurate advice.

Having a tax accountant that is knowledgeable in your industry may help with knowing different tax strategies specific to your industry.

Do some research on the accountant and see what other businesses they have helped and determine if they are a reputable reference. A responsive accountant is someone who answers your questions and helps you in a timely manner.

The general rule is that if you're self employed that you should set aside 25-30% of your income to pay for taxes. When you are a business owner or self employed individual, you'll want to plan for both income tax, as well as self employment tax which includes both social security tax and medicare tax. We work with our clients to pay in their estimated taxes throughout the year according to a tax reduction plan that we will create.

Save 15.3% for the self employment taxes, and then you'll want to also save for your income tax, which will be based upon your combined income on form 1040.

It's also important to ensure you have a business bank account.  You should have you income flow into your business bank account, and then pay yourself out of that business bank account.

You can report your deductions used for your home office when you are filing your regular tax return. The form that is need is Form 8829, Part of Your Home Used for Business.

S-Corporations are not taxed, but instead, the profits from the S-Corporation will flow through to the individual, which is why S-Corps are called "passthrough entities".

Yes you can claim deductions without receipts, however it is not recommended to do so. If you were to get audited you would need to prove you bought these for your business. In general, it's wise for a business owner to track their mileage and then make sure you've kept note of purchases using either your bookkeeping system or keep receipts.  Generally speaking, the main receipts you might want to keep are those for meals etc.

You should always track mileage and you should also ensure that you keep track of business use of major purchases such as your home office, your vehicle, trailers, storage etc.