You Don't Get to Choose...The Working Relationship Does. One of the biggest misconceptions among new business owners is that you can simply decide whether someone receives a W-2 or a 1099. Unfortunately, that's not how it works. The government doesn't start by asking how you labeled them. It starts by asking one question: Who controlled the work? We like to say they are likely an employee if you tell them what to do and when to do it. Contractors are usually a ‘hands-of

Ever wonder why you feel like you didn’t make any money but your CPA says you owe taxes? Or why your bank account doesn't seem to match your profit and loss statement? You're not alone. One of the biggest misconceptions among business owners is that the money in the bank equals profit. It doesn't. Understanding the difference between your cash balance and your business's actual profit can help you make better decisions, avoid cash flow surprises, and plan for taxes with conf

Why should you keep your business and personal finances separate? A separate business bank account is one of the simplest ways to protect your business, improve your bookkeeping, simplify tax preparation, and reduce headaches if you're ever audited. Mixing personal and business transactions makes it harder to understand how your business is really performing and often creates extra work—and extra cost—at tax time. Keeping each account focused on one purpose helps you make bet