Integrity + Quality + Continuity
Small Business
Starting or running a small business comes with a lot of moving parts—and a lot of decisions that matter.
Most businesses don’t run into trouble because of income taxes. They run into trouble because things weren’t set up correctly from the start—or weren’t maintained along the way.
That’s where we come in.
Our role is to help you stay compliant, understand your numbers, and make smart choices as your business grows. We focus on doing this well, and on working with clients who value that level of clarity and structure, and who want to do things the right way.
In the meantime, we’ve put together these Frequently Asked Questions to address common questions, timelines, and information requests you may encounter throughout the process. We hope it serves as a helpful resource as you gather your information.
Before You Get Started
Do not commingle your personal assets with your business assets. Open a separate business checking account and use a dedicated business credit card for all business activity.
No mixing. No exceptions.
Commingling is where all the disasters happen—and it’s completely avoidable. Establishing this boundary will make all the difference for you.
It depends—and anyone who gives you a one-size-fits-all answer is oversimplifying it. Here’s the quick breakdown:
• Sole Proprietor – simplest, easiest, and most common
• LLC – Necessary if you are establishing a business with another person other than your spouse
• S-Corp Election – can provide tax savings in the right situation, but comes with added complexity and responsibility. S Corps are not for everyone.
The right choice depends on your income level, risk exposure, and long-term plans. We’re happy to walk through this with you and help you make a decision that actually makes sense—not just what’s trendy.
Yes—and ideally before your first transaction.
Getting things set up correctly from day one saves a lot of time, stress, and cleanup later.
If your business is simple and stays simple, maybe not.
If you are organized and have the time available to dedicate to office work, maybe not.
But in our experience, most small business owners are GREAT at what they do, but maybe not so great at the administrative part.
Also if you are considering employees, additional income streams, or are making real money, having someone in your corner usually saves more than it costs.
Most of our clients didn’t come to us because they wanted an accountant—they came because they realized they needed one.
Bookkeeping & Cleanup
We typically recommend QuickBooks Online because it’s flexible, widely supported, and allows us to step in and help when needed.
We can—but this is not our primary focus, and in most cases, it’s not the best setup for you.
Our firm is not structured to provide ongoing, day-to-day bookkeeping in real time. Instead, we focus on helping you understand your numbers, answer questions as they come up, and ensure everything is accurate at year-end for tax preparation.
The best setup is usually: you (or a bookkeeper) handle the day-to-day, and we handle the oversight and tax strategy. At the end of the day, your financial reports are only as good as the information going into them. If the data isn’t accurate or timely, the reports won’t be either—and that makes it very difficult to make good business decisions.
- If you’re comfortable not having timely financial reports, we can complete your books annually as part of your tax work—and for some businesses, that works just fine.
- However, if you want regular insight into profitability, cash flow, and performance, we strongly recommend working with a dedicated bookkeeping service.
We partner with several great ones and are always happy to connect you.
Good decisions come from good numbers—and good numbers don’t happen by accident.
Yes. You would not be the first—and you definitely won’t be the last.
We can clean things up and get your records to a point where they are accurate, usable, and meaningful again—whether that’s for tax preparation or to hand off to your internal bookkeeper or bookkeeping service going forward.
Bonus Hint
If you are disciplined about using your business checking account and business credit card exclusively for business activity, you’re already most of the way there.
In many cases, you can simply provide your year-end bank and credit card statements—and you’ll be 80% of the way to an accurate tax return.
If you occasionally use a personal account for a business expense (or vice versa), just notify us of those items separately so we can account for them properly.
Compliance: Payroll & Sales Tax
Most of the tax problems we see in small businesses have nothing to do with income taxes—and everything to do with payroll and sales tax.
- Reports filed late.
- Payments made late.
- Numbers reported incorrectly.
- These are the areas that generate penalties fast—and they add up quickly.
- This is not where you want to have issues.
No—and for the same reason we don’t recommend that you handle it yourself.
Payroll is not our lane.
Instead, we partner with MyPay Solutions, a full-service payroll provider that handles this work every day.
We’ll help you get set up properly, and from there they will:
- Process your payroll
- File all required payroll tax returns
- Submit your payroll tax payments
- Handle year-end reporting (W-2s, etc.)
They do this better and more efficiently than you—or we—can.
Because we work closely with them, we’re always available to help if questions come up along the way.
We can help—but this is a shared responsibility.
For clients who need support, we’ll help calculate sales tax based on reports you provide to us each month by an agreed-upon deadline.
You would still be responsible for filing and submitting the reports.
In many cases, though, we can show you how to confidently handle your own sales tax filings going forward—which is often the most efficient long-term solution.
Income Taxes & Strategy
Ahhh… this is our favorite part. There is very little we enjoy more than seeing a year’s worth of revenue, expenses, and investments come together into one clear picture. We truly believe every tax return tells a story—and we love helping that story be told.
Good tax planning isn’t about tricks—it’s about understanding your numbers and making intentional decisions.
There’s no one-size-fits-all answer—but every profitable business can benefit from tax planning.
Timing income, managing expenses, and making smart purchases all play a role. In some cases, your business structure can make a difference as well.
But the real key is understanding your business—your story. That’s what allows us to focus on minimizing your total tax, not just checking boxes on a return.
Our advice here is always the same: Only buy it if you truly need it for the business.
Yes, there can absolutely be tax benefits—depreciation, bonus depreciation, Section 179—but at the end of the day, you’re still spending real money to save a percentage of it.
If it helps you operate or grow, great—we’ll maximize the tax benefit.
But we never want you making a large purchase just for the deduction.
If something is on your radar, we’re always happy to run the numbers ahead of time so you can make a fully informed decision.
Tax savings are great—but spending $1 to save $0.30 is still spending money.
Maybe.
If your business is generating profit and taxes aren’t being withheld, then yes—quarterly payments are usually necessary.
We’ll help you calculate what makes sense so you’re not guessing or falling behind.
If your business is not generating profit, there are additional considerations—especially around how the IRS views ongoing losses.
Is my business a hobby?
This is one of the most misunderstood areas of small business taxation. It’s not about mileage, equipment, or “what’s deductible.” It’s about profit motive—and that can determine whether your losses are allowed or completely disallowed.
The 3-Year Reality: If your business shows losses for three consecutive years, it’s on a very short leash with the IRS. That doesn’t mean your losses are wrong. It does mean you need to clearly demonstrate—and document—that you are operating with the intent to make a profit.
Is my farm a business?
Farm taxation has the same core issue: intent and documentation.
The IRS understands that farms often take longer to become profitable, so they are generally given more time than a typical business. But the expectation is the same—you must be able to show that you are working toward profitability.
How do I demonstrate a profit motive?
Whether it’s a business or a farm, the IRS is looking for clear, documented evidence that you are trying to make money. This includes:
- A Profit Motive: You are operating with the genuine intent to generate income—not just create tax deductions.
- A Plan for Revenue Growth: Changes in pricing, marketing efforts, new services, new customers, or operational improvements.
- An Explanation for Losses: Startup phase, investment years, weather, market conditions, health issues, or other real-world factors.
- A Justification for Major Expenses: You can explain how today’s costs are expected to produce future revenue.
And here’s the key theme: it all needs to be documented.
Working With Us
Running a small business is exciting—but it can also be overwhelming. There’s a lot to manage, and the financial side of things doesn’t always get the attention it deserves until something goes wrong.
We’re here to help you stay ahead of that with clear guidance, thoughtful planning, and a focus on doing things the right way from the start.
It depends on how much work is involved.
If your books are clean and organized, your fee will be lower.
If we’re doing cleanup or reconstruction, your fee will be higher.
If your return includes more complex matters, the fee will be higher.
If there is frequent back-and-forth communication, that also adds time—and cost.
We pride ourselves on fair fees—but that means fair to you and fair to us.
Absolutely. Many clients do. The more organized your records are, the less time we need to spend—and that directly impacts your fee.
That said, a word of caution: Sometimes what feels like “helping” can actually create more work on the back end.
If administrative work isn’t your lane, it’s worth thinking through the best setup upfront—whether that’s doing it yourself, using a bookkeeper, or a combination of both.
We’re always happy to help you find the right balance.
We stay in our lane—and help you stay in yours.
We don’t try to be everything to everyone.
We focus on what we do best: helping you understand your numbers, stay compliant, and make smart decisions.
We don’t just prepare returns—we help you understand what’s going on and what to do next.
You’ll always know where you stand.
Not sure where to start?
That’s completely normal. Call the office to set up an initial consultation. We’ll take a look and see if we’re a good fit to work together. There’s no charge for our initial conversation.