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LLCs protect you from personal liability in most instances, your personal assets — like your vehicle, house, and savings accounts — won't be at risk in case your LLC faces bankruptcy or lawsuits.

Types of Businesses 101: Sole proprietorships do not produce a separate business entity. This means your business assets and liabilities are not separate from your personal assets and liabilities. You can be held personally liable for the debts and obligations of the business. Sole proprietors are still able to get a trade name. It can also be hard to raise money because you can't sell stock, and banks are hesitant to lend to sole proprietorships.

Limited partnerships have only one general partner with unlimited liability, and all other partners have limited liability. The partners with limited liability also tend to have limited control over the company, which is documented in a partnership agreement. Profits are passed through to personal tax returns, and the general partner — the partner without limited liability — must also pay self-employment taxes.

Guidance on deferred employee payroll tax issued
The IRS posted guidance on Thursday about how to report the deferral of withholding, depositing, and paying of certain payroll tax obligations, as authorized by the Aug. 8, 2020, presidential memorandum directing Treasury to defer taxes under Sec. 7508A. The IRS has also updated Form 941, Employer’s Quarterly Federal Tax Return, to allow for reporting the deferred amount of employee Social Security tax.

The Federal Reserve Board on Friday announced changes designed to make Main Street Lending Program loans available to smaller businesses and not-for-profits.
Specifically, the board reduced the minimum loan amount on three of the five Main Street loan facilities from $250,000 to $100,000. To encourage the provision of the smaller loans, the board waived transaction fees for all loans under $250,000.

IRS Announces 2021 Tax Inflation Adjustments

IRS Announces 2021 Tax Inflation Adjustments The Internal Revenue Service has announced the annual inflation adjustments for tax year 2021 for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2020-45 provides details about these annual adjustment

Inflation-adjusted income ranges for 2021 IRA and 401(k) plans

Inflation-adjusted income ranges for 2021 IRA and 401(k) plans The IRS announced that the income ranges for employee participation in workplace 401(k) plans and IRA contributions will increase from 2020 to 2021. Most of the other retirement plan contribution limits stayed the same, however.

Fast Fact: What do they mean by Disposable Income? Personal income remaining after personal taxes and noncommercial government fees have been paid.

Don't judge each day by the harvest you reap but by the seeds that you plant. Robert Louis Stevenson

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