What happens if you’re the owner of a limited liability company (LLC) that generates tax losses, and you don’t spend a lot of time in the activities of the business? The losses might be classified as passive, and your ability to currently deduct them might be severely restricted by the passive activity loss (PAL) rules.  Continue Reading »

When you take out personal loans to buy a Maine-based small business, you want to maximize the tax write-offs for the resulting interest expense. The tax law in this area can seem complicated. But if you do some research ahead of time and talk with Filler & Associates, you can get the best possible outcome. The first  Continue Reading »

Have you procrastinated in setting up a tax-advantaged retirement plan for your Maine-based small business? If so, you are paying income taxes that could easily be avoided and putting your retirement financial situation at risk. You can set things right by taking action and positioning yourself for tax savings in the future. This article explains  Continue Reading »

If you operate a business that collects payroll taxes from employees, always remember this: No matter what your corporate financial situation is, don’t borrow from the withholding tax fund. If that money isn’t there when it’s due, the IRS will crack down hard. All small businesses face downturns when cash flow dries up. Borrowing from  Continue Reading »

Every corporation in Maine must pay income tax at rates reaching up to 35 percent. But the tax burden is even larger for corporations labeled as personal service corporations. In that case, the tax rate is a flat 35 percent. Personal service corporations don’t benefit from the graduated rate structure as other corporations do. This tax law difference  Continue Reading »

It used to be that small business owners believed that all they had to do was serve their customers effectively and make sure that their stock maintained or increased its value. It’s now more usual, however, that business owners also must be concerned with their stakeholders. What are stakeholders? They include shareholders, of course, but  Continue Reading »

There is generally no one legal structure that works best for all small businesses. The best choice depends on a number of things, including the number of owners, your tax situation and whether or not you have employees. A limited liability company (LLC) may be a good choice because it provides flexibility, low maintenance, favorable  Continue Reading »

Setting up and maintaining a SEP for your Maine-based business is probably easier than you think. The sooner you get started saving, the more secure your retirement will be, plus your business can gain tax advantages right away.  SEP Basics The SEP is a stripped-down retirement plan mainly intended for self-employed individuals and small corporate employers. If  Continue Reading »

Due to the current federal government shutdown, IRS operations are limited. However, the tax agency issued a release stating “the underlying tax law remains in effect, and all taxpayers should continue to meet their tax obligations as normal.” Here are some basic questions for taxpayers about what they should do during the shutdown, along with answers from  Continue Reading »

Aries Communications Inc. v. Commissioner, 2013 Tax Ct. Memo LEXIS 111 (April 10, 2013) What qualifies as a reasonable success fee for the employee who is also the hands-on owner of the company and played a key role in the profitable sale of some of the company’s major assets? This was the issue for experts  Continue Reading »