What’s the most common type of business in the United States? Corporation, LLC, partnership? When you drive down the street you’ll primarily pick out chain stores and restaurants, or the first businesses that come to mind are larger businesses; however, the most common type of business in the United States is in fact the sole proprietorship. Just like any of the other business structures it has positive and negative aspects. One of the most attractive parts of a sole propri

Sole proprietorship, partnership, corporation, LLCs, but which one is right for you? Many people are familiar with corporations, but they assume that corporations are reserved for large companies such as McDonalds or Microsoft. There exists a smaller kind of corporation, it’s called an S corporation and it’s a great business structure for multiple kinds of businesses including farmers. Some of the benefits that exist for S corporations is the tax breaks and liability protec

Many people own multiple pieces of property and may even rent to tenants. A common question is what deductions may be available for rental property. There are several varying deductions that may be available, some have been limited with the new tax law, and some have remained the same. Let’s examine the deductions available. Foremost, generally if you receive income from a dwelling unit, there are certain rental expenses that may be deductible on your tax return. Some of

One of the newest types of business structures is known as the limited liability company (LLC). LLCs combine some of the best aspects of sole proprietorships and partnerships with the liability protections of corporations. Due to the short history of LLCs each state handles them differently, however many of them have the similar rules and filings. First, it’s important to understand the benefits of a LLCs. Due to their structure they are typically treated as pass-through e

As discussed in the previous two blogs, New Lease Accounting Standards Part 1 and Part 2, the Federal Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02, Leases (Topic 842) on February 25, 2016. Under the new guidance, almost all leases will require balance sheet recognition as a right-of-use asset and lease liability. Further, the lease classification will affect the amount and timing of the lease and income expense. It is important to underst

New Lease Accounting Standards – Part 3 As discussed in the previous two blogs, New Lease Accounting Standards Part 1 and Part 2, the Federal Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02, Leases (Topic 842) on February 25, 2016. Once determining which classification the lease falls within, finance or operating, the lessee must comply with the new reporting requirements. For a lease classified as a finance lease, a lessee is required to do

As discussed in the previous blog, New Lease Accounting Standards Part 1, the Federal Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02, Leases (Topic 842) on February 25, 2016. The update maintains two classifications of a lease, finance leases (which replaces capital leases), and operating leases. The lessee should classify a lease as a finance lease if any of the following criteria are met at the time the lease is made: the lease transfers o

On February 25, 2016, the Federal Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-02, Leases (Topic 842). The FASB’s goal in doing so is to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and to require the disclosure of key information surrounding lease arrangements. In doing so, these new standards will result in a more faithful representation of the rights and obligat