Breakaway Bulletin: Must-Read NEW compliance requirements + how much small biz pay in taxes
Must ReadNew Requirements for Small Businesses: Beneficial Ownership Information Reporting In an effort to crack down on money laundering, financing terrorism, tax fraud, and other illegal acts via sketchy shell companies, Congress has enacted the Corporate Transparency Act. If you’re a small business owner, you and about 32 million other business entities have a part to play in fighting the bad guys...and the fines are steep for not complying. Quick hits |
Stat of the Month According to Freshbooks, the average small business owner pays 19.8% of their business’s gross income per tax year. (Course this doesn't count payroll, excise, property, and other tax types!) Tax Tip of the Month If you can't pay all your taxes when they're due, you should still file the return. The IRS likes to charge late filing penalties in addition to late payment penalties and interest, so you can save some fees by filing and paying as much as you can.
Sitting on a bunch of unfiled returns? We can help you get straightened out and up to date on your payments.
Finance Tip of the Month Don't let the tax tail wag the dog, as an accountant we know likes to say. In other words, buy that machine or make that investment if you have a true business need, but don't do it just to get a tax deduction. There are smarter ways to reinvest in your company and drive growth. Essential ReadsFrom Bookkeeping Chaos to Financial Clarity Hot off the Red Bike Press! DIY bookkeeping is so 2023. 2024 is your year to level up and outsource something you don't like and aren't good at, and spend your valuable time growing your business instead of working on receipts and reconciliations. CNBC Goldman Sachs Survey Says.... 75% of small business owners are optimistic about their financial trajectory in 2024, up from 68% a year earlier, according to a survey by Goldman Sachs 10,000 Small Business Voices. Client Story of the Month$16,500? We'll take it, thank you very much. A Red Bike Advisors small business client filed ERC claims in 2021 to get relief from the impacts of COVID-19. In 2023, the NC Department of Revenue (NCDOR) tried to disallow expenses used for the IRS ERC claim. The Red Bike Advisors Tax Resolution team represented the business in front of the NCDOR and won the audit, resulting not only in upholding the deductions which was worth over $16,000, but also an additional $500 refund to the client. New Around HereWe're thrilled to welcome Lauren Lee, CPA to the Red Bike Tax Team! Lauren is an experienced business and personal tax return preparer who actively looks at how to reduce her clients' tax liabilities. Welcome, Lauren! A Question for YouWhat keeps you up at night when you're thinking about your business? How can we help? Until next month, Your Red Bike Advisors Team We're on a mission to equip small business owners with finance and tax insights that create exponential value for their companies, customers, employees, and families. From financial reporting to forecasting, we take the confusion and scramble out of business finance and tax strategy and bring in clarity, growth, and peace of mind.
1650 Military Cutoff Rd. Suite 104, Wilmington, NC 28403 |
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