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Discussion of the latest issues affecting our clients.
Small business cash flow management for a recession
Preparing for a recession means preparing for the unknown. That’s a tough thing to do! The best advice is to think conservatively and get a second opinion from a CPA with experience in recovery from recessions and other economic disasters. One tool is to use existing accounting data, supplemented with new information, to create a visual cash flow forecast. After we see a timeline picture like this, it is easier to add the additional protections to ensure adequate cash under a possible downturn in the economy. Should we be looking at this type of cash flow information for
Earned income is not recharacterized or “netted” for self-employment tax calculation
This is an except from a client email that addresses the point that we don’t recharacterize income by passing it through LLCs, partnerships and S-corporations. Earned income is subject to either wage taxes or self-employment tax. “You asked whether income generated by ZZZZZZ Consulting LLC, taxed as a partnership, can be treated in any manner other than earned income by the partner/member ZZZZZZ Group LLC, taxed as an S corporation, and ultimately its one shareholder, you. Secondly, you asked whether income earned in this manner, if it is earned income, is properly categorized as self-employment income or whether it
Discussion of the origin of the word “Nantuxent”