Here’s something most young entrepreneurs don’t realize:
The year you buy a business is often one of your lowest taxable income years, which creates a rare tax planning opportunity.
Instead of just surviving year one, you can use it strategically, potentially reducing your lifetime tax liability by making one smart move: a Roth conversion.
Let’s break it down.
First Year Business Owner Tax Tip: Convert Your 401(k) Read More »
Operating a small business from home offers flexibility, convenience, and meaningful tax advantages. One of the most valuable benefits available to U.S. small business owners is the home office deduction. However, while the deduction can lower taxable income, it must be handled carefully. Misunderstanding the rules, miscalculating expenses, or failing to document properly can create unnecessary IRS scrutiny and financial consequences.
Many business owners either overclaim the deduction or avoid it entirely out of fear. The reality is that the IRS allows this deduction when it is calculated correctly and supported with proper records. Understanding the most common home office tax deduction mistakes
Avoid Tax Trouble: Common Home Office Deduction Mistakes Read More »
As a small business owner, tax season can be stressful, especially if you need extra time to organize your paperwork. Many entrepreneurs assume that filing a business tax extension payment deadline for small business automatically gives them more time to pay what they owe. Unfortunately, that’s not true. Understanding the difference between filing and payment deadlines is critical to avoid costly IRS penalties and interest. So, what is a business tax extension? A tax extension is a request to delay your filing deadline, not your payment deadline. For most businesses, this involves submitting IRS Form 7004 (or Form 4868 for sole proprietors) by your original due date so you get up to six extra months to submit your tax return. It’s a lifeline for busy entrepreneurs, but don’t confuse it with more time to pay what you owe.
Business Tax Filing Extensions: What They Do and Don’t Do Read More »
Starting or running a small business means balancing growth, cash flow, and operational priorities. One key partner in that journey is your accountant or CPA.
Perhaps you’re just looking into your small business accounting options, or maybe you’ve already decided to check out our pricing guide to compare it with other options out there, and want to know why different firms charge so differently.
In this post, we’ll walk you through how Midwest CPA determines pricing for monthly accounting services. You’ll learn what drives the costs, what’s included in each of our service tiers, and why our fixed‑fee model offers clarity and consistency for business owners.
What Determines Your Accounting Quote at Midwest CPA? Read More »
The Senate and House have passed H.R. 1, the “One Big Beautiful Bill Act,” a major tax reform bill. Passed by the Senate on July 1, 2025, and approved by the House on July 3, the bill is expected to be signed into law shortly.
The 2025 Tax Law Overhaul: What the “One Big Beautiful Bill Act” Means for You Read More »
Struggling to decide the best entity structure for your small business? This guide breaks down the benefits and tax implications of C-Corps, Partnerships, S-Corps, and Sole Proprietorships to help you make an informed decision. The right entity structure can significantly impact your business’s tax obligations, growth potential, and overall operations. Let’s dive in and explore which option best fits your needs.
Choosing the Best Entity Structure for Your Small Business Read More »
Restricted Stock Units (RSUs) are increasingly becoming a go-to choice for companies to reward and retain their employees. If you’ve received RSUs, you might be wondering how they work and, more importantly, how they’re taxed. In this guide, we’ll break down everything you need to know about RSUs and their tax implications.
Understanding Restricted Stock Units (RSUs) and Their Tax Implications Read More »
Buying or selling an S corporation? Learn how an F reorganization works, why it can make the deal more tax-efficient for both sides, the steps to complete one, and the pitfalls to avoid.
What is an F Reorganization? Read More »
Asset sale or stock sale? See how each deal structure affects taxes and liabilities for buyers and sellers, which businesses can use a stock sale, and what to weigh before you sign.
Asset Sale vs Stock Sale: What Entrepreneurs Need to Know When Acquiring a Business Read More »
Could an S corporation election cut your self-employment taxes? Estimate your savings with our calculator, then learn how to make the election, set a reasonable salary and use an accountable plan.
Should you Make S-Corporation Election? Read More »
