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A Federal ID Number Does Not License Everything

Most businesses owners are familiar with their Federal Employment Identification Number, or FEIN. What they aren’t familiar with is that this number does not give you any license to be in business. It only identifies your business with the federal government, similar to a social security number.

Most cities require businesses to have a city business license. Think of it as a license to drive your business within city boundaries. If you drive your business into other cities, you will need a separate license for each. You pick up most license applications at the city’s Planning and Zoning Department. [Read more →]

Tags: business by JTames
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When Do You Really Need An Accountant?

There is no clear-cut answer. The answer is depends. It depends on your knowledge base. It depends on you business experience. It depends on you comfort level.

Most people believe they can setup their Sole Proprietorship or LLC by themselves; install, setup and implement their QuickBooks program by themselves; properly account for all monies in and out by themselves; and transfer such business information to the proper tax forms to accurately reflect, “under the penalties of perjury”, their individual tax liability.

If you can do all of these, you do not need an accountant. If you need help with any of these, you might need an accountant.

The question then becomes not if you need one; the question is how often. [Read more →]

Tags: business by JTames
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How to Deduct the Value of Services Rendered to a Non-Profit Organization

The majority of non-profit organizations survive by receiving tax deductible cash and property donations. Many non-profits also survive by having professionals “donate” their time and/or services. However, this type of donation, while benefiting the non-profit, is not tax deductible by the individual or business.

Internal Revenue Service guidelines strictly prohibit deducting the value of services rendered. Why is this? Because while everyone’s time is valuable, there is no standard in determining what that time is worth.

[Read more →]

Tags: business by JTames
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Guest Blogger: The Cheese Doesn’t Stand Alone

So my friend Joseph Tames is not only a fellow photographer and good friend, but also happens to be my accountant. Being able to pick his brain has really enlightened me as to best practices for my business. But me being me, I’ve asked more of him. I hoped he could occasionally write an article with tips for small business owners, who only hire an accountant on a limited basis, as well as prospective small businesses who want to start off on the right foot.

Joe will be posting an article very soon, so stay tuned!

Tags: business by PShizzy
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