Q: My business is not making money, should I track expenses?
A: Absolutely. Every business is required to track their income and expenses. 1040 Number Cruncher can establish a secure, online bookkeeping system for you, or help you do so. It may even be advantageous to do so… depending on one’s individual tax situation, business losses may be deductible against other taxable income.
Q: Can I / Should I pay myself?
A: Sole Proprietors may, at their option, make Owner’s Draws. Taxes are based on net income.
S-Corporations may employ their owners, and are paid via payroll like any other employees. S-Corporations are an attractive entity choice for small business owners. When properly structured, they can reduce self employment taxes.