They had kids — and weren't paying them through the business. We set it up correctly: real work, reasonable pay, proper payroll. Income shifted to the kids' lower brackets, the business got the deduction, and the family kept more. Everybody won. This is the family payroll strategy in real life. Not theory, not a loophole […]
Putting Your Kids on Payroll: The Family Tax Move Most Contractors Skip Read More »
Of all the strategies in the tax code, this one surprises contractors the most — because it sounds made up. It isn't. It's Section 280A(g), nicknamed the Augusta Rule after the Masters golf tournament, when Augusta homeowners rent their houses to tournament visitors. Here's the deal: you can rent your personal residence to your business
The Augusta Rule: How to (Legally) Deduct ~$18K Using Your Own House Read More »
The most expensive line on many contractors' tax returns isn't income tax. It's the one labeled self-employment tax: 15.3% on nearly every dollar of profit, before income tax even shows up. If you're a sole proprietor or a single-member LLC taxed by default, you pay that 15.3% on your profit. All of it. On $200,000
The S-Corp Election Math, With Real Numbers Read More »
Tennessee is one of the few states where individuals pay no state income tax on wages or salaries. However, tax preparation for Tennessee businesses involves more than the federal return — most Tennessee businesses file a Franchise and Excise Tax return annually with the Tennessee Department of Revenue, and the excise component taxes net business
Tax Preparation for Tennessee Small Businesses Read More »
Texas small businesses carry a simpler payroll tax stack than most states — but simpler does not mean simple. A professional payroll service for a Texas employer still manages federal income tax withholding for every employee, FICA calculations on every paycheck, Texas Workforce Commission quarterly UI filings, and year-end W-2 preparation. Texas employers with remote
Payroll Service for Texas Small Businesses Read More »
