05-07-2021, 06:18 PM
New Small Business Tax Strategy
submitted by /u/HoodHustla
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Hello, new poster here. Had some questions about tax prep for a newly created small business.
Situation:
- Wife and I started our business in late January of this year and formed an LLC.
- We each own 50% of the business.
- We both work from home. (Bought our first home this year as well)
- We are both employed by another company (W2) and file jointly.
- Our business currently owns shares of 3 other companies (Two startups and one well established business).
- Our business offers web development, hosting, marketing and consulting services.
- At this time my wife and I are not taking a paycheck from our business.
- We use Wave accounting for our bookkeeping and categorize every transaction.
- We use Stripe for our payment processing.
Questions:
- We got our first distribution check recently, is there a certain way we should categorize that income in our accounting software?
- Hope this question isn't too broad but, overall how should we file our taxes? We've seen many conflicting answers online so far.
- Are there any tax preparations that we need to do throughout the year?
- Are there any deductions and or credits we should be aware of?
Thank you in advance.
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