Small Business Tax Questions with Johnny Horta

Small Business Tax Questions with Johnny Horta

Author: ListenMoneyMatters.com | Andrew Fiebert and Matt Giovanisci January 28, 2015 Duration: 39:14
Running a small business has many tax benefits, but it has many tax pitfalls too. To make sure none of us get on the wrong side of the IRS, we will discuss small business tax questions with Johnny Horta.  LMM’s resident tax expert schools us on small business taxes for all our side hustlers out there.  If you run a small business, you’ll have more write-offs than if you are an employee.  The downside is, you have to pay all 15.3% of your FICA and social security taxes rather than paying 7.65% while your employer picks up the other half.  If you’re self-employed, it’s a good idea to set up a Simple or SEP IRA.  A Simple allows you to defer up to $12,500 and a SEP, up to $53,000.  This can help lower your tax burden while helping you save for retirement.  If you’re just starting out, it’s a good idea to schedule a consultation with an accountant or a tax attorney.  Just ask for a certain amount of time, an hour maybe and ask what they charge for that.  Be sure to have a list of questions to make the most of the time.  According to the IRS, you are a business if you make money for three of five years. Otherwise, it’s classified as a hobby.  Lots of people want to use a home office deduction.  But to do so, the office has to be “regularly and exclusively used as a home office for the business.”  So if you work on your computer by day and watch Netflix on it by night, sorry, you’re out of luck.  When you decide how to set your business up, sole proprietorship, LLC, etc., the most important thing to consider is the likelihood that you’ll be sued.  If it’s small, a sole proprietorship will probably be suitable.  Remember, Johnny will answer your questions live via our webinar February 2.  Show Notes  Horta Tax and Financial Services:  Connect with Johnny on Facebook. IRS:  Get some answers here before spending money on an accountant. LMM Get Involved:  Find out the details for our upcoming tax webinar with Johnny February 2 at 8:30 pm Easter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Ever feel like personal finance advice comes from another planet, spoken in a language you don't understand? Listen Money Matters is the antidote. Hosts Andrew Fiebert and Matt Giovanisci ditch the jargon and the judgment, offering real talk about money that's actually useful. Their conversations are grounded, often funny, and built on the idea that managing your finances shouldn't feel like a lecture from the wealthy elite. You'll hear practical strategies for budgeting, investing, getting out of debt, and building a life where money works for you, not the other way around. This podcast cuts through the noise with actionable steps, whether you're looking to optimize an already solid portfolio or are just figuring out where your paycheck goes each month. The tone is refreshingly direct and relatable, making even complex topics feel approachable. It's the kind of discussion you'd have with a savvy friend who's done the research and isn't afraid to be blunt about what works. Tune in for a no-BS take on financial freedom that empowers you to make smarter decisions with confidence.
Author: Language: English Episodes: 100

Listen Money Matters - Free your inner financial badass. All the stuff you should know about personal finance.
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