I am starting a b2b service company mainly servicing my state (Massachusetts) and then eventually going multistate. Is the best strategy … 

Answer by Wray Rives: First I would suggest you understand the "advantages" to Delaware incorporation, which are legal and not tax related.  If anything it is a tax disadvantage to incorporate in Delaware and operate in another state.  If legal protection and choice of venue in the event of you and your business being sued […]

My business partner and I have registered a LLC in Wyoming. We are a software startup and have not yet made any income. Neither of us is … 

Answer by Wray Rives: A partnership is a pass-through entity, meaning all the profits and/or losses will flow through to you the individual owners.  You do have to file a Form 1065 for the LLC if you are choosing to be a partnership.  Individual owners do not need an ITIN to file a 1065; however, […]

What are all the home office deductions that can be taken for telecommuting? Will deductions affect capital gains when selling down the r… 

Answer by Wray Rives: First to take a home office deduction you need to have an area of your home that is used regularly and exclusively for business.  It does not have to be a separate room, but does have to be used only for business purposes, so if you work at your dining room […]

How do you elect your existing single member LLC in Texas, USA to be taxed as an S corporation? 

Answer by Wray Rives: To make the election, you will need to complete a Form 2553 and mail it to the IRS.  Texas does not require anything and making the election will not impact your Texas franchise tax reporting. There are a few items you need to note. Because you are in Texas, a community […]

What taxes should I pay if I am employed by a non-US company? 

Answer by Wray Rives: First I suggest you or your employer contact a US tax professional, because there are a number of tax issues besides just the employment taxes and even the employment taxes could be a complex issue, depending on your employment relationship with your employer. Now to answer the best I can without […]

Taxable or Non-taxable Income 

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  Are you looking for a hard and fast rule about what income is taxable and what income is not taxable? The fact is that all income is taxable unless the law specifically excludes it. Taxable income includes money you receive, such as wages and tips. It can also include noncash income from property or […]

What’s a fair price for a tax advisor? 

This questions, comes up a lot.  I think the advent of do it yourself tax software has created a mindset that tax preparation is a commodity.  The truth is a fair price totally depends on the complexity of the tax work and level of services that you need.  There are a number of very narrow […]

2013 Tax Organizers 

2013 Tax Organizers are now available Note for choosing a file format: Tax organizers in PDF format can be viewed and printed online or downloaded and edited with the full version of Adobe Acrobat. Word format can be downloaded and edited and  printed with most word processing software.   New Client Online Form New Client […]

Don’t get married 

In the spirit of unintended consequences, same sex couples may want to heed the warning “be careful what you wish for, you just might just get it”.   After parts of the Defense of Marriage Act were struck down, same sex couples who are legally married in a state that recognizes same sex marriage are […]

Yes there are expiring tax provisions in 2013 

In December of 2012 us tax professionals were sweating if Congress would ever pass a bill to extend the numerous tax provisions that were due to expire.  While the American Taxpayer Relief Act of 2012 did give us a last minute reprieve and extended a large number of expiring tax rules, we still have some […]