2 ms·

I'd add a 4th as there is getting the money to your company then getting it to you as tax efficiently as possible. This normally involves waiting for year end o

I'd add a 4th as there is getting the money to your company then getting it to you as tax efficiently as possible. This normally involves waiting for year end or pension

mooreds 5y ago
I think that's a great thing to think about when you are established. A bit of overkill/premature optimization when you are starting, though.
redis_mlc 5y ago
Doesn't apply in the US for a sole proprietor. You just file a Schedule C with your personal filing, deduct business expenses, and deposit into whatever retirement account you setup on whatever schedule you want. (Don't exceed annual maximums.) The IRS doesn't care about dates (or in general how you do your accounting) as long as you consistently "deem" what year they're in. (Though your expense receipts should reflect the correct calendar year if you want to avoid explanations later.) Deem = if you billed somebody in Dec and you received a check dated Jan, then you can decide which tax year to file it in, as long as you follow that policy next year. Canada is very similar to the US, and the average person can easily do filings themself in either country. The cheapest filing solutions are either Taxslayer or a local ethnic accountant (I'm in California, so a Spanish tax preparer) for about $150 - $200. H&R Block is $1,500 for a Schedule C, and isn't any better, and an SV EA is about $1,500, but my last one didn't want to talk directly to clients, so that wasn't worth it. Standard practice by EAs is to mail a filing extension automatically for all clients before April in case you or them are delayed in filing to avoid filing penalties. I've also done that myself, but not recently. If you do an online Schedule C filing yourself, allow an extra week or two in case you can't find a menu option. Taxslayer usually gets back in about a day with correct answers. AMA.

I'd add a 4th as there is getting the money to your company then getting it to you as tax efficiently as possible. This normally involves waiting for year end or pension

mooreds 5y ago

I think that's a great thing to think about when you are established. A bit of overkill/premature optimization when you are starting, though.

redis_mlc 5y ago

Doesn't apply in the US for a sole proprietor. You just file a Schedule C with your personal filing, deduct business expenses, and deposit into whatever retirement account you setup on whatever schedule you want. (Don't exceed annual maximums.) The IRS doesn't care about dates (or in general how you do your accounting) as long as you consistently "deem" what year they're in. (Though your expense receipts should reflect the correct calendar year if you want to avoid explanations later.) Deem = if you billed somebody in Dec and you received a check dated Jan, then you can decide which tax year to file it in, as long as you follow that policy next year. Canada is very similar to the US, and the average person can easily do filings themself in either country. The cheapest filing solutions are either Taxslayer or a local ethnic accountant (I'm in California, so a Spanish tax preparer) for about $150 - $200. H&R Block is $1,500 for a Schedule C, and isn't any better, and an SV EA is about $1,500, but my last one didn't want to talk directly to clients, so that wasn't worth it. Standard practice by EAs is to mail a filing extension automatically for all clients before April in case you or them are delayed in filing to avoid filing penalties. I've also done that myself, but not recently. If you do an online Schedule C filing yourself, allow an extra week or two in case you can't find a menu option. Taxslayer usually gets back in about a day with correct answers. AMA.