We receive a lot of questions pertaining to tax and financial matters. Here is a sample of commonly asked questions: Q: Is it better if I file separately from my spouse? A: Usually the answer is no, and the only way to know for certain is to perform an analysis when preparing the tax return […]
Business
Muni Bonds or Taxable Bonds?
Investing in municipal bonds can be a benefit due to the fact that the interest income they provide is generally tax-exempt. In order to realize the full tax benefits of municipal bonds, you have to be careful not to make the following mistakes. Low Interest Rates: Interest income from municipal bonds is usually much lower […]
The LLC Trap
Operating a business as a limited liability company, or “LLC” is very popular among small business owners. LLC’s have been around for several decades and can be formed in every state. There can be several benefits, but several major drawbacks. The Benefits of an LLC: Less Administrative Burden: If you operate as a single-member LLC, […]
You’re Not Too Sophisticated for Cash
It seems as though nobody uses cash anymore, but why should you? Smart people use credit cards and pay the bill at the end of the month so they can earn points, build credit, and have additional time to pay for their purchases, also known as “float.” But is it really that smart to use […]
How a 10% Productivity Increase Can Increase Profits by 35%
A simple way to increase the profits of a business is to increase employee productivity. Each business and industry is unique, and here are several simplified illustrations to show the impact. The assumption is that if productivity increases by 10%, then sales will also increase by 10% due to extra capacity as long as there […]
Business Structure Issues – Key Differences Between an LLC, S-Corp, C-Corp and Sole Proprietor
Business owners have several choices of how they can operate a business. The decision should be well thought out and be able to meet their objectives. Here are some of the pros and cons of each structure: Sole Proprietor: The easiest form of operating your business is as a sole proprietor. A sole proprietor has […]
What I Learned as a Paperboy
When I was 11 years old up until age 13 I was a paperboy. As far as I know they don’t exist anymore in North Jersey, and I was one of the last paperboys to deliver The Record until they replaced us all with adults. It wasn’t until I owned my own CPA firm that […]
Choose Your Business Partner Wisely
Running your own business is challenging enough, and you don’t want the added burden of having to worry about your business partner. When choosing a business partner you should keep in mind that this decision can make or break your business. Here are a few things to look for and some things to avoid: What […]
Municipal Bond Investing Mistakes
Investing in municipal bonds can be a benefit due to the fact that the interest income they provide is generally tax-exempt. In order to realize the full tax benefits of municipal bonds, you have to be careful not to make the following mistakes. Low Interest Rates: Interest income from municipal bonds is usually much lower […]
Don’t Be a Co-Signer Unless You Want to Pay Someone Else’s Debts
Your friend, child, brother, or parent can’t get a mortgage or a car loan so they ask you to be a co-signer. Of course you will be a hero and co-sign for your loved one! But beware of the dangers before doing so. In reality, the lender is assuming that the odds are fairly high […]