Today TaxMama hears Lana in Illinois who says . “I started a new S corporation last year, but let the paperwork get behind. I read your book and I would like to take care of my taxes on my own to save money and not involve a pro. My earnings need to be limited because the limits set by my disability insurance.”
You can earn enough gross income to cover the cost of an accountant or tax professional. It’s only the wages from your S corporation that will be taken into account for your disability income.
You’re already starting out your business poorly – letting it get away from you. Especially since you have a disability, you need the extra safety net of having a good tax pro in your corner. That person, working with you, can take the stress
off you – and ensure that you’re always in compliance.
The tax and payroll tax paperwork and all the licensing are a real and legitimate burden in a small business – even in an S corporation.
I hate to tell you this, but the pattern you’re starting to manifest is one I’ve seen often. It breaks my heart every time someone starts a business with high hopes – then gets behind on tax paperwork. The business ends up getting into trouble and the whole business suffers. What you’re doing is the first step to guaranteed failure and the resulting depression.
Invest the money in a good advisor.
TaxMama is only here to point you to resources. I cannot be your personal tax advisor – paid or unpaid. That’s why my book tells you, in the very first chapter – build an advisory team and meet with them at least once or twice a year to address all the issues – and to cross the ‘t’s and dot the ‘i’s.
And remember, you can find answers to all kinds of questions about business taxes and other tax issues, free. Where? Where else? At TaxMama.com[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the subscribe link and join us.]
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