A company can use workers provided through an employee leasing company or professional employer organization (PEO) to save money on benefits such as health and life insurance, as well as administrative costs. Here’s How it Works An employee leasing firm hires people for your company and pays all the related costs for them. You then pay the...

For federal income tax purposes, an unincorporated joint venture or other contractual or co-ownership arrangement under which several participants conduct a business or investment activity and split the profits is generally treated as a partnership. This general rule applies even if the joint venture or arrangement is not recognized as a separate legal entity (apart from...

This happens more frequently than you may be aware of — when you receive your business or personal mail and there is a check from the IRS or your state taxing agency. Great, except you were not expecting a refund. The common reaction is to deposit that check into your bank account. However, if you...

A recent U.S. Tax Court decision drives home the important point that current deductions aren’t allowed for most expenses incurred while a new business is still in the start-up phase. Other decisions have dealt with the same issue in recent years. So, the proper federal income tax treatment of start-up expenses remains an ongoing source of confusion...

It can be difficult in the current job market for young people and recent college graduates to find full time and summer jobs. Business owners with children in this situation may be able to provide them with valuable experience and income while generating tax and financial savings for themselves. As a business owner, you may be...

There can be negative tax consequences when purported loan payments are recast as corporate distributions to shareholders. In some cases, the courts have ruled that withdrawals from two closely held corporations were constructive corporate distributions rather than loan proceeds and repayments. As such, the withdrawals triggered taxable dividends and capital gains for the shareholders. Corporate Distribution Basics...