Establishing the Correct Business Entity in DC

Businesses can be set up and managed under various types of structures. These include sole proprietorships, partnerships, S corporations, C Corporations, and limited liability companies. The type of entity that you select may also change over time as your personal situation changes and also you may have the need for more liability protection. This brief article will help you make a more informative decision.

The correct choice of entity will usually...

Bookkeeping Tips for Startups

It is important to start keeping detailed records of your transactions once your business begins to receive income. Prior to that time you may use an excel spreadsheet to keep track of your expenses. The IRS allows you to deduct up to $5,000 of start-up costs and amortize the remainder over 180 months once the business begins operations.

Once your business receives income, you will need to keep supporting documentation for your sales, expenses, and... Read More >>

Advantages of Conducting Business in Maryland

Maryland’s proximity to Washington DC and having the major port city of Baltimore (the eighth largest port city in the United States) make it an attractive location to start a business. Among large cities, CNN Money ranks Baltimore the tenth best place to launch a small business.

Maryland is home to the National Institutes of Health and has now developed the fourth largest cluster of biotechnology companies in the United States. Maryland has the... Read More >>

Advantages of Conducting Business in Washington DC

Washington DC is the nation’s capitol. It attracts companies from around the United States who want to do business with the federal government. Many of these companies contract business with the federal government and employ thousands of people. It also has thousands of federal employees who work in downtown DC. The job market currently employs approximately three million workers and is expected to continue adding new jobs in the future. The... Read More >>

Advantages of Conducting Business in Virginia

Virginia’s proximity to Washington DC and having the port of Virginia with a schedule of 3,000 sailings a year to ports around the world make it an attractive location to start a business. Fifty-six percent of all United States consumers live within 741 miles of Virginia. Since the great recession of 2008 Virginia has create over 55,000 private sector jobs. Among states, both and CNBC, which is the leading financial news cable channel, have... Read More >>

Recommended Software for Bookkeeping

I recommend Quickbooks from Intuit for your bookkeeping needs. Although Quickbooks may be a little more expensive that other comparable programs, Quickbooks has become the standard for small business accounting and it’s the favorite accounting software (more…)... Read More >>

Surviving an IRS Audit in Maryland

I have represented several clients before the IRS over my thirty years of experience. I recently represented a client and I am going to describe the procedures required to defend your position before the IRS. (more…)... Read More >>

Cost of Incorporating in Delaware rather than the Washington metropolitan area.

Delaware offers several advantages for incorporation. These include the Delaware General Corporate Law and the flexibility built into the corporate formation process. (more…)... Read More >>

Small Business Retirement Plans

There are five types of Small Business Retirement Plans:

1. Simplified Employee Pensions

2. Simple IRAs

3. Solo and Family 401 (k) plans

4. Profit-sharing plans (self-employed keogh plans and corporate plans)

5, Defined Benefit Plans

The best plan will depend on some of these factors -

1. Amount of cash you can put away

2. Your age

3, Other Employees in your business,

I strongly recomment that you start putting money into your... Read More >>

Home Office Deduction for Corporate Owner

The best way to claim this deduction is to use an accountable plan.  The accountable plan requires that you, the owner, employee must incur the expenses in the performance of your duteis for the corporation and substantiate the expenses to the corporation in accordance with the tax law.

To substantiate the expenses you will need to show -

1. Exclusive and regular use of the office in your home

2. Use of the office for the convenience of your... Read More >>