There are some tax breaks out there that may be available to small business owners. However, business owners may only qualify if their adjusted gross income is under a certain amount. If a small business owners could qualify, but their income was a little too high, they might lose access to tax breaks like higher  Continue Reading »

When the owners of a C corporation sell their business’ stock for a large profit, usually they are taxed at a maximum federal rate of 20 percent, as long as they’ve had the shares for more than a year. Relatively speaking, this tax rate isn’t too bad. However, a tax-free sale to an ESOP would  Continue Reading »

Often a Maine-based small business will be asked by staff members if they can be exempt from federal withholding. There are a few different things to keep in mind when considering this question: If the staff member had no liability the previous year, i.e., they received a refund of all federal income tax paid, they  Continue Reading »

Historically, small businesses that wanted their employees to have health coverage without the hassle of a company health plan had the option of reimbursing workers for the cost of buying their own coverage or some portion of it. As long as the employee provided evidence that they used those funds for that purpose, the dollars  Continue Reading »

If you operate your Maine-based business as a sole proprietorship, a single-member LLC (which is treated as a sole proprietorship for tax purposes), or a husband-wife partnership, here’s a great family tax planning deal: Hire your under-age-18 children as legitimate employees of the business. It doesn’t matter if they work part-time or full-time. This idea  Continue Reading »