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Sacramento + Roseville Tax Accountant and CPA for Entrepreneurs

Being an entrepreneur requires creativity. In order to focus on coming up with creative solutions to problems, they shouldn’t have to worry about the details of their finances. A CPA can help take some of this pressure off their client. If you are an entrepreneur that needs help with your accounting or bookkeeping, you should get in touch with Cook CPA Group today. The accountants who work with Cook CPA Group can help entrepreneurs with all aspects of their accounting so that they can focus on what matters most.

Choosing the Right Business Structure for Your Business

When embarking on the creation of a new business, entrepreneurs have a number of options regarding the way that their business is structured. In the long run, this structure determines how a business is taxed and operated. Entrepreneurs who have their own business should consider the ways in which each business structure aligns with the long-term and overarching goals of their business. One type of business structure that an entrepreneur may choose for their business is a sole proprietorship. This is the simplest type of structure and the easiest for entrepreneurs to maintain, since it carries the fewest amount of legal restrictions for businesses. Two other options for business owners are general and limited partnerships, which offer the most potential for the accrual of capital. However, since multiple partners are able to have ownership over the business, it can be difficult to make decisions based on a consensus between all parties. Entrepreneurs may also choose to structure their business as a limited liability company (LLC), which allows them to have a fair amount of flexibility but which also requires the most comprehensive operating agreement of all the options listed here. Businesses may also be structured as a small business corporation, also known as an “S corporation”, which allows them to easily share stocks. However, this type of business structure is the most highly regulated by the government. A CPA with Cook CPA Group can help entrepreneurs decide the best way to structure their business and can help manage the methods of taxation that come along with it.

Self-Employment Taxes

Small businesses must pay self-employment taxes, which go toward federal funding for Social Security and Medicare. While traditional companies take these taxes out of their employees’ paychecks automatically, small businesses have to pay them on their own. The standard rate of self-employment taxes in 2019 is 15.3% of the first $132,900 that a person earns. Any additional income on top of that amount is taxed at 2.9%. Entrepreneurs can file their self-employment taxes by recording their information in a Schedule C form, then filing it along with Form 1040. Self-employment taxes can be calculated by using Schedule SE; this form distinguishes self-employment taxes from income taxes. A licensed accountant who works with Cook CPA Group can help entrepreneurs file their self-employment taxes by making sure that all of the pertinent information is entered accurately and thoroughly.

Accounting Services for Small Business Entrepreneurs

A CPA from Cook CPA Group can help small business entrepreneurs decide on the accounting method that their business will use to keep track of all of their expenditures and income. Entrepreneurs have two options when it comes to accounting methods for their businesses, namely accrual accounting and cash accounting. Accrual accounting is based around tracking when a payment is owed to the business in exchange for a product or service. The cash accounting system, on the other hand, entails counting expenses and income when it is actually received or paid. The cash accounting method is often preferred by small businesses because it is simpler than accrual accounting. The CPAs from Cook CPA Group can also help entrepreneurs with their bookkeeping. They can advise entrepreneurs on how they can simplify their bookkeeping and accounting processes so that they can save time and go on to create the businesses and products of their dreams. The certified public accountants with Cook CPA Group can also help entrepreneurs with all aspects of their financial lives. They can advise entrepreneurs regarding the right bank accounts to open and how to use each one; they can also help entrepreneurs organize receipts, record transactions, and create budgets; most importantly, a CPA can help entrepreneurs perform analyses of the financial state of their business, which will allow them to assess the successful and disadvantageous aspects of their ventures.

CPAs Helping Small Businesses and Entrepreneurs in Roseville and Sacramento

As an entrepreneur, your time and attention are important. Give your most valuable resources to interesting new ideas, not financial concerns. The accountants from Cook CPA Group are eager to help entrepreneurs in Roseville and Sacramento create the most dynamic and forward-thinking businesses possible.