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By Marcin Rapacz, CPA One of the conversations I have most often with new business owners goes something like this: "I thought I'd just pay my taxes when I filed my return." Unfortunately, that's not how it works. If you're self-employed or own a business, the IRS generally expects you to pay your taxes throughout the year, not just when you file your tax return. These payments are called quarterly estimated tax payments, and missing them can result in penalties and interest—

New tax rules could help more Americans save money—but only if they understand how the deduction works. Focus Keyword: tax deductions By Marcin Rapacz, CPA If you've ever asked yourself, "Can I deduct my charitable donations?" you're not alone. It's one of the most common questions I hear every tax season. Many people generously support their churches, local food banks, schools, veterans' organizations, and other nonprofits—but they're often unsure whether those donations wil

Understanding the Role of Salary in an S Corporation An S corporation allows profits and losses to pass through to your personal tax return, avoiding double taxation. However, the IRS requires that owner-employees receive a reasonable salary for the work they perform before taking distributions. This salary is subject to payroll taxes, while distributions are not. The key point is that the salary must reflect what you would pay someone else to do your job. This prevents owner

When running an S corporation, managing expenses and reimbursements can quickly become complicated. One tool that can simplify this process and provide tax benefits is an accountable plan. Many S corp owners overlook this option, missing out on potential savings and smoother financial management. I want to explain what an accountable plan is, why it matters for S corporations, and how you can set one up effectively. What Is an Accountable Plan? An accountable plan is a formal

Filing taxes can feel overwhelming, especially with the many rules and forms involved. Many people wonder if they should tackle their taxes on their own or hire a Certified Public Accountant (CPA). While doing your own taxes might save money upfront, there are situations where hiring a CPA makes more sense. I want to share when it’s better to bring in a professional to handle your taxes and why it can be a smart decision. Understanding the Role of a CPA A CPA is a licensed ac

Starting a new business is exciting, but managing your finances can quickly become overwhelming without a solid bookkeeping system. Many new business owners underestimate how crucial bookkeeping is for tracking income, expenses, and overall financial health. I’ve learned that good bookkeeping not only keeps you organized but also helps you make smarter decisions and avoid costly mistakes. Here’s what every new business owner should know about bookkeeping to build a strong fin

Health insurance costs can be a significant expense for small business owners. If you own an S corporation, understanding how health insurance deductions work can help you save money on your taxes while providing valuable coverage for yourself and your family. I’ve navigated this topic myself and want to share clear, practical insights to help you make the most of your health insurance deductions. What Makes Health Insurance Deductions Unique for S Corporation Owners Unlike s

Choosing the right business structure can shape your company’s future in many ways. One option that often comes up for small business owners is electing S corporation status. But is it the right choice for your business? I’ve spent time researching and working with small business owners, and I want to share a clear, practical guide to help you decide if an S corporation fits your needs. What Is an S Corporation? An S corporation is a special tax status that a corporation or L