With Jack Cohen, CPA IncSmart.biz Inc

 Income Tax Reporting Forms  Payroll Tax Reporting Forms  State Tax Reporting Forms  Sales and Use Tax Forms  Personal Property Tax Forms  Others

 940 FUTA  941 Federal Withholding and Social Security  State Withholding  State Unemployment  State Disability  Others

 Use Payroll company

 Sales tax  Use tax  Personal property tax  Business license or permit

 Who is responsible for collecting the tax?  What if I purchase merchandise out of state?  What is a resellers certificate?

 United States Supreme Court has held that states can only impose tax or collection responsibility when: There is a substantial physical presence between the state and: the seller the transaction the activity The state may require out-of-state vendors to provide Information.

 Substantial physical presence includes: Owning or leasing real estate or tangible personal property Maintaining a business location or inventory Having resident or nonresident employees work within the state Incorporating or qualifying to do business Using the company’s own trucks and personnel to make deliveries into the state on a regular basis

 Employee Visits Phillip Crosby Associates, Inc. (Alabama-1996) Management Consulting Business Telemarketing sales; in-person visits 26/year Did 69 projects and training over three years Nexus upheld-considered regular and repeated B.L. Key, Inc. (Utah-1997) MFG sent 3 supervisors to Utah on 8 trips lasting a week to a month Supervisors hired 4 employees each trip Argued presence was not regular but sporadic Nexus upheld-ruled regular means repeated

 Representative’s Nexus Out of State Mail orders Independent Sales Rep Some 800 phone numbers Telemarketers ruled as independent sales reps  Printer’s Nexus Applies to out-of-state companies establishing Nexus By storing paper at the printer’s location By visitations to the instate printer  Instate deliveries - How many?  Drop Shipments

 Start-up expenses  Organizational expenses  Web site expenses

 Money advanced to corporation = loan  Deductible upon start of business  Start – When apartment is available  When open for business  When searching for business  Capital Expense Until Start

 Client calls  Market research  Plan your vacation around business

 Maintain Good Records  Receipts with business reason.  Diary – Kept Contemporaneously.  Primary reason for trip.  Ordinary & Necessary Expense

 Fully deductible  Find a creative location  Successful people travel

This year: $125,000 up to purchase of $500,000

 Children: lower tax deductions  Spouse on payroll  Employee benefits  Retirement planning

 Seminars  Conferences  College tuition

 Medical  Child Care  Life Insurance  Dental  Long Term Care  Chiropractic

 Pension, Sep 401K  Profit Sharing  Defined Benefit Plans

The Ultimate Safe

 It’s Your $  Plan, Plan, Plan …  Take Action

 Background  Tax Preference Items  Sch. ‘A’ Taxes  Accelerated Depreciation  Capital Gains  To Avoid – Keep deductions on page 1 of return.

 Defined Benefit Plan  Max. Compensation Used = $225,000  Smaller of 100% of compensation or  $45,000  401K  $15,500 & $5,000 catch up  SEP – Lesser of  25% Income or $45,000  Traditional IRA –  Lesser of Compensation or $5,000 

For more information, visit IncSmart.biz Inc