A recent report from the New York Times makes it clear that aspiring business owners commonly use their retirement accounts to get their new ventures off the ground. But, as a recent tax court case illustrates, what may seem like a smart investment strategy can go awfully wrong when the budding investor disregards expert advice  Continue Reading »

In a previous article, we discussed the benefits of S-corporations for your Maine-based small business. Here we’ll delve further into the idea of S corporation conversion, as the federal self-employment (SE) tax doesn’t apply to earnings from an S corporation business. If you’ve reached the breaking point with high SE taxes, there may be a  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 »

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 »

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 »

Whether you’re setting up a new company in the Greater Portland area, or you’ve been in business for years, you need to evaluate which legal structure is best for your enterprise. No one option is best for every type of operation. The number of owners, taxes, and your business goals are all important factors to  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 »