Agent and taxes

[MIBizInsurance]

When you make a business related purchase's does it need/ should it be purchased with a company check or credit card?


Or is the receipt fine?

Will be purchasing a laptop soon and want to make sure we can claim it at end of year.

At this point not looking to get a company credit card nor a separate checking account.

Do most of you have biz checking accounts and company credit cards?

Also, for tax purposes how is your company set up to provide max tax advantages and reduce liability?

 

[J.R.]

When you make a business related purchase's does it need/ should it be purchased with a company check or credit card?

That is based on personal preference. I would find it a lot easier to keep track of two accounts (1 personal and 1 business) versus spending time keeping track of receipts with one account. With one look I can see how much money I spent on lunches, office supplies, gas, etc. I also have a notebook where I track everything on a daily basis. Anal, YES! Am I scared if I ever got audited. NO!

Or is the receipt fine?

Always keep a receipt.

Also, for tax purposes how is your company set up to provide max tax advantages and reduce liability?

Personally, I am set-up as a Sole Proprietor, however, I made that decision after making a list of criteria and then comparing that to the different structures here in Maryland. Remember, every state has their own guidelines, so make sure you contact a reputable attorney (after you have narrowed your searches). Too many people think that incorporating your business is the best (predominately an ego trip to impress their friends). It comes down to a few things 1)The amount I pay in taxes 2)The amount of exposure that I am comfortable with 3) Estate planning.

Here is a good link http://www.allbusiness.com/

-J.R.