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Converting Your Business from LLC to C Corp? Here’s How You Can Avoid Costly Tax Consequences

Posted by Melissa Hollis to Taxes, Business Advice

Many entrepreneurs get their business off the ground as a limited liability company (LLC).

This can make a lot of sense if you are the single owner of a company or if you only have a few partners. Operating as an LLC gives business owners flexibility.

From a tax perspective, an LLC couldn’t be better: The business’ income is treated as the income of the owners. That’s right—you don’t pay separate business taxes if your company is an LLC. Instead, the company passes taxable profits and deductible losses through to the owners, who are all considered partners by the friendly folks at the IRS.

Pretty straightforward, right?

But there may come a time when you need to convert your LLC to a C Corporation. There are a few indicators that you should think about converting to a C Corp.

7 Ways Small Business Owners Can Build Financial Confidence

Posted by Tony Esposito to Accounting

We recently explored what it means to have "financial confidence" or the knowledge and faith that your business is meeting its fiscal objectives, and the sense of certainty imparted by a robust and accessible set of bookkeeping data.

We learned that financial confidence has as much to with the facts of one’s business as it has to do with an executive’s feelings about the business—the two are woven together in a pretty tight ring. From there we know that you can’t manifest feelings or facts out of thin air, so how do you build confidence in your business’s finances?

Need To Finance a Startup? Start By Building Up Your Credit

Posted by Anastasia Ivanov to Funding

Nothing is more frustrating than knowing you’ve got a million dollar idea and not one dollar to put into it. But this is a common situation in today’s world. Many people barely have enough money to pay their monthly bills, much less finance a brand new company.

5 Accounting Problems That Can Sink Your Funding Round

Posted by Molly Otter to Investment, Taxes, Accounting, Business Advice, Funding, Startup Tips

You’re a startup CEO. You’re running your business fast and lean. Getting your company’s financials cleaned up and organized is on your to-do list, but so are a thousand other things. You’ll get around to it—just as soon as you secure the loan that will help you scale up.


I hate to break it to you, but as long as your financials are a mess, that funding is going to stay forever out of your reach. At Lighter Capital, we field a lot of loan applications, and the number one reason we reject potential borrowers is that the entrepreneur is unable to produce financials. And we’re not the only ones who feel this way.

SMBs Say Hello to Receipt Matching (and Goodbye to Cluttered Shoeboxes)

Posted by Melissa Hollis to Taxes, Accounting, Business Advice, inDinero Product Updates, Budgeting, Startup Tips

Over the course of your life, you’ve probably known someone who holds on to all their receipts, no matter how old or trivial those receipts may seem. Maybe it was your grandfather and his shoebox. Maybe it’s your mother and her filing cabinet. Maybe it’s you and that overflowing desk drawer.


While the practice of saving receipts can verge on obsession, startups have good reasons to retain and organize those little scraps of paper with care. Receipts help your business keep track of expenses, so you can provide proof of purchase for any future exchanges or claims under warranty, understand what your organization is spending too much money on, reimburse employees when necessary, and, of course, deduct everything you possibly can on your taxes.

What eCommerce Sellers Should Know about Sales Tax on Shipping Charges

Posted by Jennifer Dunn to Taxes, Startup Tips

If you run an eCommerce business, you’re quite familiar with shipping products. But did you know that states have different ideas of what UPS or post office shipping fees are considered taxable?

Getting to Know inDinero: Mimi Tumamak (Tax), Daniel Villablanca (Accounting), and Sara Bryant (Service)

Posted by Melissa Hollis to Inside inDinero

Each organization that inDinero serves has three teams working for them: a tax team, an accounting team, and a service team. In our series, “Getting to know inDinero,” we share more about the people behind these three teams -- everything from what they do at inDinero to their favorite things about supporting small businesses.

Cheat Sheet: Everything You Need to Apply for an SBA Loan

Posted by Meredith Wood to Business Advice, Business, Funding, Loans, Startup Tips

For any business owner considering taking out a loan with the Small Business Administration (SBA), it is not uncommon to be put off or overwhelmed by the sheer volume of information that you need to provide to apply.


But if you’re willing to put some time into it, you can absolutely prepare everything that you need to apply for and successfully obtain an SBA loan. Here, we’ve put together a cheat sheet detailing all of the most common pieces of information or documentation SBA lenders expect from loan applicants.

 

4 Secrets to Using a Premium Credit Card to Get the Most Out of Business Spending

Posted by J.R. Duren to Business Advice, Budgeting, Startup Tips

Part of your business’s success comes from leveraging whatever talent and energy you have to make your company grow. That philosophy should carry over into how you handle your credit card choices.


For business owners with buying power, luxury credit cards can be an excellent way to take advantage of an extensive list of luxury-focused travel benefits. Businesses go through multiple stages of growth and purchasing, so one of the crucial questions to ask as you consider your card options is, “When?”

 

Does Your Business Have Financial Confidence?

Posted by Tony Esposito to Investment, Accounting, Business Advice, Funding, Budgeting

Ask yourself: How confident are you in your company’s financial position? How much knowledge do you have about the transactions and activity that flow in and out of your books? Not to mention, how much faith do you have in the accuracy of your financial picture?

Success starts when you take charge of your finances.

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