When should you hire a consultant?

You should NEVER hire a consultant if you don’t already know what you need. You should hire a consultant for one of two reasons. Either they can do something that you cannot do for yourself, or they can do something faster and better than you can do it yourself. Until you can get to that point, your discussions with your consultant should be at no charge. That’s the way we do it at GroProfit International LLC

For more information contact Milt Woods - GroProft International LLC

Can I deduct my health care costs?

Health care premiums can be deducted as ordinary and necessary expenses of a business – as employee benefits. To qualify, the health insurance must be in the name of the company. To deduct other health care costs, small employers (especially sole owner/operators) may want to establish a Section 105 plan. With a 105 plan, an employer can deduct 100% of employee/owner health care cost, including co-pays and deductibles.

Answer provided by: Len Titone – Next Level Financial Management

I am Self-Funding, do I sitll need a Business Plan?

Absolutely! A business plan is not just an exercise for a banker. It is a concise roadmap for your business. Even if no one else reads it, the process of answering the tough questions, and putting your ideas on paper is valuable for every business owner.

Not sure how to get started? Consider a class or book to give you the basics.

Answer by Lorraine Ball - Roundpeg

How do I know if I should classify workers as contractors or employees?

The IRS has been really looking closely into this issue in recent years. There are very specific guidelines for classification. The IRS published a classification guide called the 20 Factor Test.

Basically, the issues resolve around control. Who controls the workers behavior? In other words, are there set hours? Who controls how the work is performed? Is there specific instructions and training? Second, who controls the finances? Does the worker provide a bill for services? Who is responsible for related business expenses? Can the worker work for other employers? Is the worker trying to make a profit? How is the worker paid?

Finally, How do the parties perceive their relationship? Is there a contract? Who controls the number of hours? Are any benefits provided to the worker? What is the term of the relationship?

Answer provided by: Len Titone – Next Level Financial Management

Can I pay myself a salary if I own a LLC or a partnership?

No. Partners in a partnership receive their income from the profits of the organization. The profits are taxed to each partner via K-1 form. A partner can received a “Guaranteed Payment”. A Guaranteed Payment is a payment made to a partner for services or for the use of money. The payment is paid regardless of partnership profits, and is not subject to income tax.

Answer provided by: Len Titone – Next Level Financial Management