-
Cash Basis vs. Accrual
In the Simpliest Terms…….CASH BASIS REVENUE means you declare it when you RECEIVE the money.ACCRUAL BASIS REVENUE means you declare it when you EARN the money (usually that is when the invoice is generated whether you receive a portion of the money or none at all at the time the invoice is generated). When you…
-
LLC’s – What is an LLC?
Limited Liability Companies started in the United States in Wyoming in 1977. Similar entities existed in Germany in the late 1890’s. The Wyoming farmers wanted the advantages of corporations (specifically, limited personal liability) with the advantages of being unincorporated (no organizational meetings, By-Laws, accounting requirements). Since then, all 50 states have adopted various forms of…
-
LLC Income is Reported How?
How is the LLC income reported? The IRS considers the single member LLC to be a “disregarded” entity. That means, it is reported for tax purposes exactly the same as a sole proprietor with no additional reporting requirements. That’s still a part of the GOOD, ease of reporting income. A multiple member LLC comes under the…
-
LLC Operating Income is taxed how?
How is the LLC operating income taxed? The tax side is way different… BAD. A single member LLC is a “disregarded” entity. Thus, the LLC would not do a separate tax return as would a corporation. The owner (now you know to say member) would account for the income exactly as a sole proprietor on a…
-
Depreciation of Vehicle Depends on Gross Vehicle Weight (GVW)
Curb Weight is the actual weight of the truck without any passengers or cargo in it. It’s the base weight that is used in subtraction to calculate the total weight of the vehicle with passengers and cargo. Gross Vehicle Weight is the total weight of the loaded vehicle. This includes the vehicle itself and the cargo that…