| Sole proprietor, Inc, LLC, - What does
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| | records of all the money you spend on
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| it all Mean?
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| | your business. From the IRS point of
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| Your childcare is a business. While you
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| | view, the more records and documents to
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| may not need to formally create a legal
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| | substantiate your position, the better.
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| business, there are options to consider
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| | Invoices, receipts, credit card
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| if you have an especially large
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| | statements, bank statements and cancelled
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| operation, or employ more than one
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| | checks are all good evidence of the
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| person. From a legal standpoint,
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| | expenditures incurred. There are also
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| different types of entities provide
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| | several accounting programs - available
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| limited liability. This is something you
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| | at any store that sells computer software
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| would want to discuss with a lawyer.
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| | - that are inexpensive and work great for
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| Different entities also provide different
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| | tracking expenses and providing useful
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| tax advantages and disadvantages. The
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| | financial reports. Several online
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| type of entity really depends on the
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| | companies sell software specifically for
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| business and how many people own the
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| | childcare providers.
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| business. An accountant should be able
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| | Be sure to set up a filing system for
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| to advise you on the best entity for your
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| | your records. It doesn't need to be
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| situation.
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| | fancy, as long as it makes sense to you
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| What can you deduct on your taxes? Any
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| | and you can find your records once tax
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| why would you want to?
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| | time comes around.
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| Each time you claim something as a
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| | Keep work and personal expenses separate
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| deduction on your taxes, you reduce the
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| | Having a separate checking and savings
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| amount of money the government can tax.
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| | account for your business will make
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| By reducing that amount, you can reduce
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| | keeping track of your finances a lot
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| how much tax you pay, letting you keep
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| | easier. Sure, you have to balance
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| more of your money.
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| | another checkbook, but you'll know that
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| A simple rule of thumb to remember is any
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| | all money in and out of those accounts
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| ordinary and necessary business expense
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| | has to do with your business. Also,
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| is deductible. Keep in close contact
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| | consider getting separate credit cards
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| with your accountant, and find one if you
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| | for the business. When you use all of
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| don't have one. Regular meetings or
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| | these accounts exclusively for business,
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| discussions with the accountant will help
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| | it is much easier to put all your records
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| in working through what is considered
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| | together, rather than trying to separate
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| ordinary and necessary for your business.
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| | out what is business and what is
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| Be sure to keep in mind all the expenses
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| | personal.
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| you incur when doing business - ie.,
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| | Ahh, taxes. Where do we start?
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| don't forget things such as mileage on
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| | Tax laws are so specific to your state
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| your vehicle. Trips to the bank to
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| | and city, that it's hard to give even
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| deposit your weekly daycare income, for
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| | general guidelines. You may want to
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| instance, is an ordinary and necessary
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| | check with a local accountant or state
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| business expense that is deductible.
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| | and local tax authority to find out if
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| Who has time to file receipts after a day
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| | there are any special rules, permits or
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| with the kids?
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| | taxes that you may need to run your
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| Even though resting from your busy day
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| | business. Paying your taxes quarterly
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| sounds better than filing you receipts
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| | might be an option, so you can spread the
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| for groceries that week, stay on top of
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| | payment out over the year instead of
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| your paperwork and make sure you keep
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| | paying it all at one time.
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