Blog posts on Wave sometimes give advice for a specific jurisdiction (e.g., just for Canadian businesses). When that advice doesn’t cover American businesses, we ask accounting pros in the U.S. to provide the relevant American equivalent.

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Original article: "10 things NOT to do when starting your business"

In the passage discussing GST/HST, American businesses can observe the following advice:

"Sales tax in the U.S. is levied on a state-by-state basis. It is collected by the seller of goods and remitted to the state agency via sales tax returns filed quarterly. You must register for a Sales Tax and Use number prior to commencing in the sale of tangible personal property. There are various exemptions for sales of certain types of goods or services and they vary greatly state to state.

There is no equivalent U.S. Federal Tax."

(Information provided by Bradley Tompkins of SkySync, an outsourced accounting solution for small business.)


Original article: "4 Tips to Reduce your Accountant’s Bill"

Regarding tax-filing deadlines, American businesses should keep in mind these Income Tax Filing dates for various U.S. entities:

"1040 - Individuals and Single Member LLC’s (Schedule C reporting entities) - April 15 Estimated tax payments (Form 1040-ES). Payments are due on the 15th day of the 4th, 6th, and 9th months of your tax year and on the 15th day of the 1st month after your tax year ends.

1065 - Partnerships - April 15 for calendar year end, otherwise the 15th day of the 4th month following the partnerships year end. (Each partner must be provided with a K-1)

1120 and 1120s - Corporations - March 15 for calendar year end, otherwise the 15th day of the 3rd month following the corporations year end. (This is to facilitate S corps providing K-1’s to shareholders prior to April 15 1040 deadline)

Estimated tax payments. Payments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the tax year."

The list of deductible expenses applies to American businesses, with the appropriate changes to units of measurement (metric vs. imperial).

(Information provided by Bradley Tompkins of SkySync, an outsourced accounting solution for small business.)


Original article: "Your home office: How to stay organized"

These are the rules on file retention, for American businesses:

"Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return.

  1. If you owe additional tax and situations (2), (3), and (4), below, do not apply to you; you must keep records for 3 years.
  2. If you do not report income that you should report, and it is more than 25% of the gross income shown on your return; you must keep records for 6 years.
  3. If you file a fraudulent return; you must keep records indefinitely.
  4. If you do not file a return; you must keep records indefinitely.
  5. If you file a claim for credit or refund* after you file your return; you must keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later.
  6. If you file a claim for a loss from worthless securities or bad debt deduction; you must keep records for 7 years.
  7. Keep all employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.
The above is from the IRS website, at IRS.gov. Long story short, 7 years is a safe bet. As with anything having to do with the IRS, the answer is “it depends”."

(Information provided by Bradley Tompkins of SkySync, an outsourced accounting solution for small business.)


Original articles: "How to write off expenses for your home-based business" and "Can I write off my mortgage in Canada?"

American home-based businesses should observe the following advice regarding deductions of certain expenses:

"Deductions for business-use-of-home are similar to the Canadian advice in this article: You must pass the “exclusive use" and the “principal place of business” tests. You can deduct percentage of utilities, maintenance, etc. for that space in your home as well as the mortgage interest.

However, if you depreciate the part of the home used for business and write off this percentage of the mortgage principal payment, this can create capital gains taxes on the amount you claimed. There are also limitations imposed on deductions in that they are limited to the income of the business, keeping adventurous taxpayers from creating a tax shelter out of their home office."

(Information provided by Bradley Tompkins of SkySync, an outsourced accounting solution for small business.)

BRADLEY TOMPKINS is the founder of SkySync, an outsourced accounting solution for small business that focuses on providing tech-focused, cloud accounting solutions. Their main thrust is becoming a part of management to better understand and assist their clients in growing their business.


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SkySync Accounting

SkySync is a gaggle of tech savvy accountants leveraging technology to provide outsourced accounting services to forward-thinking entrepreneurs. Think of us as an accounting department that you don't have to buy 10-keys for.......unless you want to! SkySync is a Mississippi based outsourced accounting business that focuses on exceeding the needs of small business owners anywhere in the United States. We meet you where you work and turn your misbehavin' numbers into real, timely and accurate financial information that is ready to help you successfully grow your business. We are accountants with altitude!

Bradley Tompkins

Chief Numbers Whisperer

office 601.706.9125

email brad@skysyncaccounting.com

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web www.skysyncaccounting.com