Small Business
The most frequently asked tax questions related to Small Business
Nonprofit 501c3 Ministry Small Business Wondering About Sales Tax on Faith-Based Magazine
Asked Monday, March 23, 2026 by KaaseI operate a 501(c)(3) nonprofit ministry in Colorado selling faith-based, educational magazines for teen girls to fund the ministry. We offer $90 annual subscriptions (6 issues) or $15 individual issues, mailed nationwide every other month. The CO Dept. of Revenue referenced CRS 39-26-718(7)(a). Do we need to collect and remit Colorado sales tax on these magazine sales (both subscriptions and individual issues), or are they exempt due to our nonprofit status and educational/religious content?
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Double Taxation - UK & US
Asked Monday, March 16, 2026 by HannahDo we need to file quarterly tax returns in the U.S. if our company is UK-based? The only reason we created a U.S. LLC was to access the Klarna payment method, as they require a U.S. entity. Since our primary company is in the UK, filing taxes in both the UK and the U.S. could potentially result in double taxation for us.
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LLC Disregarded Entity
Asked Monday, December 29, 2025 by RonFiling business income (1099) and personal income(W2) When I contract work as a 1099, the payments will be routed to my business bank account and report tax as business income. However, I work one client as a W-2 employee. Paycheck will go to a personal bank account and file as personal income. Please let me know if this is appropriate for tax filing. Should I use my physical business address or mailing address for Tax filing?
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I have less than 10,000 in revenue annually. How do I file my taxes?
Asked Tuesday, December 16, 2025 by JI have less than $10,000 in business revenue annually. What do I need to consider regarding tax preparation?
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What should I do to complete the registration of my non-USA company
Asked Tuesday, December 09, 2025 by ErmanHi all, I have a small LTD in the UK and would like to buy wholesale products to resell here. I have an EORI/TAX number for UK customs/HMRC, so they can trace my activity. Do I also need an EIN to purchase certain items in the USA? Or can I buy goods w/o it? Also, some websites request an EIN to open a business account, eg, Amazon USA. Can I register my UK-based company with the US system, or is there an alternative solution for obtaining an EIN? PS. I need invoices for my UK-based company.
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Single-member LLC
Asked Tuesday, September 16, 2025 by DeenI have a single-member LLC (Deenil Groups LLC) that is registered neutral but I runs a transportation & tour business with, then makes income, can I use some of the money made from the income as a down payment for a condominium or house without getting into any tax problems? Or buy a vehicle for the business. What is the best way to do it? I will appreciate your response. Thank you!
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Sole Prop vs LLC
Asked Friday, August 16, 2024 by KevinI'm starting a social media marketing business and want to start out with as little expense as possible. I would like to start as a sole proprietorship until I get off the ground and then convert to an LLC. I see little risk in having sole prop in this industry, but would like to add the protections an LLC provides as I grow and potentially add employees. Is the process of converting difficult? Should it coincide with a certain date, like the start of the next year? For reference I will be operating in Illinois. Thanks!
CPA Answer:
HI Kevin!
I always recommend starting off as an LLC because the default tax status for a single member LLC is a sole proprietorship. An LLC is a legal entity, then tax status is secondary. The reason to start off as an LLC is ease of transition to partnership or S Corp should your needs change.
Jackie Compton
Tax obligations for an Online Travel Agency in the United States
Asked Wednesday, July 17, 2024 by SirishHi, we are starting a new travel agency. The home state of the Business is in the state of Nevada. We have also registered as out of state corporations in the state of California, Florida, Hawaii, Washington and IOWA as these states would need us to have a seller of travel license in order to enable customers from these places to book hotel accommodations on our website. However, we do not have any physical office in any state other than Nevada. I would like help to comply with the tax requirements that my company may have in the United States or will i have tax liability only in the state of Nevada.
CPA Answer:
Hi Sirish-
Generally states do not tax non-resident business revenues unless your sales values exceed a certain amount or your transaction value exceeds a certain amount. Each state will vary in their filing requirements. If you would like to do some consulting with me on this, let me know and I can advise you on next steps! Thanks, Jackie
Jackie Compton
Can I combine my first 2 years of taxes in one tax return ?
Asked Saturday, November 20, 2021 by OsamaI started my business in mid 2019, I made around $8,000 in revenue in 2019. When I wanted to file business taxes for that year, my accountant told me that I don’t have to file since it’s first year of business and I haven’t made that much and it would be added to next year income ( meaning 2020) so when I filed for 2020 taxes he just added tha $8000 I made in 2019 to the total revenue from 2020 as a total number and filed it for me . Is that legit? Or do I need to file for 2019 separately ? And if so can I do that now in late 2021?
CPA Answer:
Technically you cant combine years like that. As a practical matter though, the $8000 of revenue probably results in a much lower number for taxable income after accounting for expenses so if the income is immaterial for that year, adding it to 2020 might not be a real problem. Also keep in mind if there were an audit, showing the income, even though its in the wrong period could help with negating any sort of under reporting penalty.
Of course you really should consider amending 2019 to report everything in the correct year, but if you decide not to do that, be sure everything from here on out is reported in the correct period. Combining revenue is not proper.
David Huff