Do I Need to Issue 1099s to People?

Do I Need to Issue 1099s to People?

Have you paid anyone over $600 for a service? Then you probably need to issue them a 1099. Let’s talk about best practices. BEFORE you pay someone for service — say editing or supervision services — you should request a W-9 from them. A W-9 will include a contractor’s Name/Company name, Address, SSN/EIN, and the type of entity they are. This information is needed to provide a 1099-Misc to someone if it is required. But when do you need to issue a 1099-Misc? When: You’ve paid someone over $600 The payment was to an individual or an entity that is…
Read More
How Does An S-Corporation Save Me Money?

How Does An S-Corporation Save Me Money?

If you have read our post about S-Corporations and determining a reasonable salary, you’re probably wondering how S-Corps help save you money. Because it’s a requirement to pay yourself a reasonable salary when operating an S-Corp, savings on your taxes comes into play when your reasonable salary is more than your net income. This lets you take a distribution. Distributions are amounts of cash that you can take out of your business. Distributions are not subject to payroll taxes so by taking a distribution, you save by not paying payroll taxes on that amount of money. When told about this,…
Read More
Cryptocurrencies: Does TL;DR Have Experience With Bitcoin, Ethereum, and Litecoin?

Cryptocurrencies: Does TL;DR Have Experience With Bitcoin, Ethereum, and Litecoin?

Short answer: Yes, we do. Long answer: We work with many clients who actively trade cryptocurrencies, mine, or hold onto some form of cryptocurrency. When we discuss cryptocurrencies with potential clients, we ask about the following: Do you keep track of your basis? What exchanges are you currently on? Are you using cryptocurrency as a currency or just investing in it? Are you actively mining? Are you trading cryptocurrency on a regular basis?   If you are not keeping track of your basis, we recommend using the website www.bitcoin.tax to manage your portfolio. TL;DR: Accounting has an account on the…
Read More