Recession on its' way?

 The national political environment is really crazy, and April 2nd has been announced for President Trump to highlight and impose his full tariff plan.

Economic projections are difficult, but there will be some sort of large economic impact, for better or worse.

Then, after the initial impacts, there will be international pluses and minuses with the probability of retaliation.

The last recession was the economic disaster of 2009. Many small business owners may have never been through a recession.

Follow the blog for advice on preparing for a possible recession.

Update: In 48 hours, on April 2nd, the Trump tariff war goes full tilt. We have no idea how this will work out. Trump promises "pain" in the short run.

NLRB Recent Changes - Human Resources Issues

The Trump administration has changed the composition of the National Labor Relations Board, and the Interim General Counsel has been busy rescinding previous operational standards, giving workers less rights and employers more power. This trend will continue when the board is fully staffed. 

Workers will have a harder time prevailing.

REMEMBER:

Having the right to abuse and mistreat workers does not make it smart of abuse and mistreat workers.

Especially during the build up of a labor shortage.

Tax Time - Why Accounting Fees Seem High

Why are tax professionals; CPAs, Enrolled Agents and return preparers, so expensive?

For starters, a lot of education and experience are required.

Qualified employees are expensive to hire and retain.

Technology, the "tech stack" is very expensive to obtain and maintain.

Malpractice insurance is expense.

Continuing education is expensive.

Overhead is expensive. 

And there is a shortage of high caliber talent, which raises the cost of employment. 

There are cheaper alternatives, but cheap can be very expensive. 

Notice and Disclaimer: This blog is designed to provide accurate and authoritative information for education purposes only. This blog is not an attempt to provide legal, accounting or financial planning advice, such advice should always be obtained from licensed, certified and/or qualified professionals. 

Readers should be aware this is a dynamic area; professional advisors and reference sources should be consulted regularly for updates. Sources for state and local laws should be consulted when necessary. 

Tax Time - Children on Your Payroll

 A lot of advice, much of it bad advice, is circulating about  putting your children on your payroll, paying them $X, and then putting the funds in a retirement account.

Much of this advice is bad advice.

IRS standards:  REAL WORK FOR REAL WAGES

The work has to be legitimate and age appropriate, and the wages have to be market rate. 

Can this be legit? Yes. Is there a lot of hot air and blue sky here? Yes.

Notice and Disclaimer: This blog is designed to provide accurate and authoritative information for education purposes only. This blog is not an attempt to provide legal, accounting or financial planning advice, such advice should always be obtained from licensed, certified and/or qualified professionals. 

Readers should be aware this is a dynamic area; professional advisors and reference sources should be consulted regularly for updates. Sources for state and local laws should be consulted when necessary. 

Starting a Small Business - Part 3 - Entity Selection

 Proprietorship, Partnership, Limited Liability Company, C  Corporation

What to do?

The answer is "It Depends."

Depends on the:

type of business

size of business you imagine

number of owners and capital structure

location of business

risk factors (liability protection)

tax consequences

middle and long-range plan

...and more

You should consult your 1) accountant and then 2) your lawyer before diving headfirst into a business entity.

Tax Time - Why You Need an Honest Accountant

 I have heard business owners bragging that their accountant is "creative" with deductions.

That is of course, usually illegal. Subject to reversal at audit. Subject to criminal actions if  large or frequent.

Nobody likes to pay taxes, but cheating on your taxes puts you in jeopardy.

"But I have been in business 25 years and never been audited."

Regular cheating for that reason is known as "audit roulette."  Not legal.

PS: If you are going to cheat on your taxes do not brag about it on social media.