1099’s

Subconsultants certainly require 1099's; but did you also know you're required to send them to your Landlord and your Lawyer as well?  Rents actually get reported in box 1 and attorneys are due a 1099 misc for any funds $600 or more. As many of us are aware 1099 miscellaneous forms are typically given to subconsultants that are not incorporated.  For example if you higher a Graphic Designer and pay them $600 or more during a fiscal year you'll need to send them a 1099 misc by January 31st.  O...
More

Do I need to Formalize my Business?

No, but sometimes.... Small Businesses can operate under their primary owners Social Security number. What if you don't want to take a check in your name but rather your businesses name.  Well then just register your business as a DBA (Doing Business As) with your local town for an incidental fee and open a checking account in that name.  You are now operating as a DBA under your personal security number. Doesn't work for partnerships though they must register as an LLC - Limited Li...
More

How Much Should my Owners Draw Be?

An excellent question asked by all new business owners.  The answer lies in understanding overhead.  Overhead is defined as all administrative, marketing, vehicle, office space, utilities - the basics that it takes to run a business.  This category should never contain a cost of goods sold, for instance something directly related to creating sales such as inventory or payroll. To determine an appropriate draw, look at a span of time 6 months or more on the Profit and Loss - the longer the per...
More