Foundation Communities helps during Tax Season

Tax office foundation communities

Foundation Communities helps during Tax Season

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Tax season is officially underway, and Foundation Communities has 7 tax sites throughout Austin and Round Rock through April 15. All of their tax preparation services are FREE and available to anyone who makes less than $55,000/year. Please help them spread the word! Drop off is available at all 7 sites for anyone who wants to drop off their tax documents and pick up their completed return the following week. When coming in for tax prep, all tax clients would need to bring photo IDs for primary taxpayer and spouse, SSN/ITIN for everyone on the return, and all 2019 tax documents.

More information is available on their flyers. Click to view HERE.

If you are interested in volunteering at the enter, click to view HERE.

At the Prosper Centers, our mission is to build pathways to financial wellness, higher education and health coverage so that those who face barriers have opportunities to prosper.


How Small Business Owners Save on Taxes

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Provided by George Ellison with LegalShield®

By forming your own business, you may be able to lower your taxable income. Plus, you gain the flexibility to decide exactly how you want to file your tax return. In addition to be taxed as an S Corp., an LLC can choose to file as a sole proprietor or partnership to continue claiming your earnings as an individual or you can petition to file as a corporation for even more options.

There are many tax benefits that corporations may qualify for.

  • Potential tax savings based on your income bracket. Corporations are taxed at different rates than individuals.
  • Depending on your level of income, your earnings may be taxed at a lower rate for your business than they would be if claimed by you as an individual.
  • The option to pay yourself a fair salary, which can be deducted from your taxable earnings as a business expense.

You can also deduct the cost of doing business.

  • Operating a small business allows you to write off various expenses such as work computers, relevant software, employee salaries and even your internet and phone bills.
  • You can formally lease your own personal assets to your business to deduct the costs from your taxable income. This can include anything from property for an office space to a company car.
  • In many cases, you can even deduct the cost of forming your LLC. (Certain rules and restrictions apply. You can only deduct up to a $5,000 for this purpose).

Protect your assets.

There are several additional benefits to forming a business and lowering how much you pay in taxes is just the beginning. Properly utilizing a business entity can also help provide personal liability and asset protection. This added layer of protection is why it’s called a Limited Liability Company.

Find out more about how forming a small business can help you save.

This is not intended to be legal or tax advice. Please contact an attorney or tax professional for any legal or tax advice and assistance.

With LegalShield® Protection Plan get Access to a Team of Attorneys for only $24.95/Month. Contact George Ellison with any questions at gellisonm@aol.com .


When Should I Incorporate?

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Provided by George Ellison with LegalShield®

When it comes to incorporation, timing is everything. Incorporate too soon, and you may be stuck paying unnecessary fees and taxes, filing unnecessary reports, and just generally wasting your time and money. Incorporate too late and you could face unlimited liability. Here are some factors to consider when timing your incorporation.

Multiple Founders

No matter how well a business with multiple founders may start, there is always the potential for disagreement and, worse yet, dissolution. To avoid this, incorporation may be a good option. After incorporation, founders are limited to the number of shares purchased. This means that each founder’s investment in the company is determined simply by the number of shares owned. This eliminates the potential for disagreement based on the amount of investment in a company by the founders. Incorporating will also allow the founders to transfer shares without potential dissolution of the business. If property (especially intellectual property) is part of a business, incorporation is a wise choice to maintain the right of the business to that property rather than any individual founder.

Contract Agreements with 3rd Parties and Employees

Incorporation status can also impact the liability of the business to 3rd parties. Liability to a 3rd party in an unincorporated business points to the owner(s)/partner(s) and may remain there even after the business has incorporated. In this case, it is the timing of the agreement with the 3rdparty, more than the timing of incorporation, that matters. Here’s an example. An unincorporated business contracts with a 3rd party to purchase supplies. In this case, the owner(s)/partner(s) of the unincorporated business are liable for this purchase agreement, even if the business incorporates at a later time. Any employees hired by the business before incorporation could also be held liable for this agreement. However, employees hired after incorporation would not be held liable. For those employees hired after incorporation, liability would fall upon the business. For this reason, before an unincorporated business hires any employees, it is wise to consider the liability issues that may arise. Note that 3rdparties can also include customers of the business.

Of course, there are other factors which should be considered when deciding whether or not to incorporate. But the general rule of thumb is that once your business idea is more than just a twinkle in your eye, you should start looking at incorporation options.

Need to incorporate? Launch by LegalShield makes it easy.

Contact George Ellison with any questions at gellisonm@aol.com to get started today.


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