A business line of credit is a revolving line of credit that allows you to borrow up to a certain limit and pay the money back over time. The best way to understand how a business line of credit works is to think about it as a personal line of credit. A personal line of …
Depreciation is the decrease in the value of an asset over time. This can be caused by factors such as wear and tear, age, or changes in the market. When an asset is depreciated, its value is reduced for accounting purposes. There are several methods that can be used to calculate depreciation. The most common …
Many people have heard that the S Corp is one way to save on business taxes. While this is true to an extent, there is a lot of misinformation, so let’s try and clear up what S Corporation actually means, the tax advantages and some common pitfalls. What is an S Corporation? Let’s start with …
What is a Reasonable Salary for an owner of an s-corporation? Read More »
Double Taxation Definition Double taxation is a term that refers to when a company’s income is taxed and then the distributions or dividends that are paid to shareholders are also taxed. The C-corporation is the only business structure that undergoes double taxation. Since a C-corporation is an entity established separately from its owners and its …
The basic accounting equation is a simple formula where assets are equal to liabilities plus shareholder equity, but this basic equation can be made more granular to provide greater insight into equity transactions. The type of business impacts the expanded accounting equation format, but the concept is still the same – a detailed accounting of …