Tax benefits of hiring American veterans

flagVeterans are our heroes. They represent our nation with pride, dignity, and patriotism. To encourage businesses to hire veterans who have served in the armed forces, the IRS offers a number of tax incentives to help put our heroes to work.

As part of the Department of Veterans Affairs, the Work Opportunity Tax Credit is the primary means by which an employer can enjoy a tax break by hiring a veteran. This federal tax credit is available to businesses in the private sector and to certain non-profits that meet specific requirements. To get the credit, a business must hire a veteran who is unemployed, has a service-related disability, or has had difficulty finding a job since leaving the military. This credit allows these companies to reduce their federal income taxes. The value of the credit is typically based on how many hours the veteran works for the business.

The VOW To Hire Heroes Act of 2011 expanded on the incentives included in the Work Opportunity Tax Credit. This act opened the door to more tax-exempt organizations that can claim this credit. It can be claimed against an employer’s Social Security tax requirements on certain wages. In most cases, government-run organizations do not qualify for this credit. The maximum value of the credit for a for-profit, tax-paying organization is $9,600 per veteran hired. For tax-exempt organizations, it’s worth up to $6,240. Although the credits under the original act expired on Jan. 1, 2013, they were extended under the “fiscal cliff” deal that took effect at the start of the year.

In addition to benefiting businesses, tax credit legislation has also been a major boon for veterans themselves. These new laws have increased the opportunities for vets in education, training, and assistance in finding a job. One specific example is the Veterans Retraining Assistance Program. Similar to the longstanding GI Bill, this government-funded program pays for veterans to complete a full-time education program for up to 12 months that would lead to an associate’s degree, a non-college degree, or a certificate in a specific field.

Maximize your tax deductions and take advantage of tax credits when using the tax planning services at 1-800-Accountant. Call 1-888-749-0117 or go to www.1800accountant.com.

Who should incorporate their businesses?

The sole proprietorship business structure is sufficient for some individuals. However, incorporating a business has lots of great advantages that will make your life easier. If you’ve thought about incorporating, there are numerous reasons why you should seriously consider it.

One key benefit to adding “Inc.” or “LLC” to your business name is personal asset protection. With corporations, you can separate and protect all of your personal assets so that they aren’t tied to your company like they would be with a sole proprietorship. Everyone wants to make sure their homes, vehicles, and money tucked away in personal savings accounts will be protected in case something happens on the professional side of a business owner’s life. That is why forming a corporation is a smart way to separate your important personal assets from the work you do behind your desk. Corporations offer a business owner limited liability of business debts and other work-related obligations as well.

By forming a corporation, you can also give your business more authority and credibility. Even though a sole proprietorship may have all the credibility in the world, there is a little more glimmer to a company that is incorporated in the eyes of customers, vendors, and possible business partners. A sole proprietorship that uses only the name of the business owner could make others question its integrity if they are unfamiliar with what this individual represents. It also offers name protection and would prevent others from using a coveted business name that you want to reserve. Plus, a corporation can have an ongoing existence, regardless of whether its owner leaves the company or passes away. Sole proprietorships simply leave the map when these things occur.

The tax requirements of corporations and LLCs are more flexible than those of a sole proprietorship. Corporations can get around double taxation on business profits and dividends by choosing to use the Subchapter S tax filing status. As for LLCs, their owners can elect to have their companies taxed as corporations rather than using the common pass-through nature of an LLC where the taxes are passed through to an owner’s personal tax returns. Sole props only have one taxation option.

Before selecting your business structure, use the wisdom of the business and tax advisors at 1800Accountant. Call 1-888-749-0117 or go to www.1800accountant.com.

Client Spotlight: Michael Fawcett – EvoTrex

There are lots of companies out there that sell camera cases. But Michael Fawcett is offering a type of case that you probably won’t find anywhere else.

 

Fawcett launched EvoTrex in September. Based in Highlands Ranch, Colorado, Fawcett is self-employed and has a home office.

 

The cases the company offers are primarily intended for the GoPro  camera, a reasonably priced video camera. The difference with these cases is that they have a molded interior design to perfectly fit the shape of the camera. The direct-to-consumer company plans to sell the cases online and will offer a variety of colors and configurations.

“I think we’ll be one of the preferred options,” he said.

 

Fawcett said it was “personal need” that sparked the idea for starting the business.

“I have a GoPro camera,” he said. “I wished there was a nice bag for it, so I decided to design it, and now I’m working through production of it.”

 

The camera cases are expected to cost about $70. The GoPro cameras tend to run about $300, which is considered very inexpensive for a high-end video camera.

 

According to Fawcett, he has enjoyed the “variety of being able to make all the decisions on everything.” He has liked developing a website for the company, designing the product, and working with manufacturers. He said he used crowdfunding to assist in his efforts as well.

 

As far as challenges he faced in getting the business going, they include production delays, language barriers, and international shipping issues. The company tried to design the product on its own, but Fawcett realized it was better to let professionals step in.

The best advice he can give to startup business owners is “persistence.”

“Have some clarity of what you really want to accomplish. Know what your idea of success looks like before you get going with it.”

 

There are both advantages and disadvantages to self-employment, Fawcett said. He likes having the ability to make decisions on how much work he does and how much money he can make. However, there is no real fallback for him since he’s the only one managing the business. Overall, he feels the pros outweigh the cons.

 

Fawcett is a client of 1-800-ACCOUNTANT. He uses the tax prep service and the monthly access to accountants. He said he has had a positive experience with the company overall.

Why using 1-800-Accountant is better than using a seasonal tax outlet

Seasonal tax service providers pop up in various parts of the country at the beginning of the year in preparation for April 15th. Their purpose is to serve clients who are looking for quick tax prep to make sure their taxes are done on time. However, 1-800-ACCOUNTANT can offer in-depth, year-round service to both individuals and businesses alike.

1-800-ACCOUNTANT has a team of financial professionals who work 12 months of the year. They come from a variety of backgrounds, and there is someone for everyone in terms of the different areas in which they specialize.  By having this continuous support throughout the course of the year, you will be completely in tune with your personal and business finances. You won’t have to worry about missing key deadlines because your accountant is unavailable. Your money will always flow smoothly to the correct channels so that you pay the necessary taxes you owe while also saving as much money as you can.

Another benefit of using 1-800-ACCOUNTANT lies in the fact that you can schedule time that is convenient for you to talk to your accountant. If you have more free time in the afternoon or more downtime over the summer, it doesn’t matter to us. Our accountants, CPAs, and enrolled agents avail themselves to you when it fits your schedule. This also means you won’t have to drive around to look for a seasonal location since our accountants are a phone call away. We know each of our clients is involved in unique activities like owning small businesses, and finding time is not always easy to do. That is why 1-800-ACCOUNTANT goes all out by giving everyone regular chances to communicate with an advisor.

Call 1-800-ACCOUNTANT at 1-888-749-0117 today.

Client Spotlight: Bob Arnone

Bob Arnone – owner of Get It Right Enterprises, LLC discusses his positive experiences with 1800Accountants business tax services.

With a eye towards football officiating techniques and 3D modeling, Bob needed help getting his business started as well as assistance in effective tax planning strategies. With a dedicated team of tax professionals at his side, 1-800-Accountant helped Bob Arnone through his first tax season hassle-free.

To see Bob’s full testimonial, check out the video below:

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