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Day 7 – How to Hire Your Kid Legally — And Save Taxes

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  Day 7 – How to Hire Your Kid Legally — And Save Taxes Hiring your child might sound like a sentimental idea, but it’s actually a strategic tax-saving move —if done right. The IRS allows business owners to hire their minor children under certain conditions, offering both tax deductions for your business and income tax benefits for your child . Here's how to make it work legally and efficiently. ✅ Why Hire Your Child? 1. Your Business Gets a Deduction Wages paid to your child are a legitimate business expense. That means your business income (and tax liability) goes down. 2. Your Child May Owe Zero Taxes As of 2025, a child can earn up to $14,600 (the standard deduction) without paying any federal income tax— as long as it’s earned income (i.e., wages, not gifts or allowances). 3. No Payroll Taxes for Some Businesses If your business is a sole proprietorship or a partnership where both partners are the child’s parents , and your child is under 18 , then: No Social S...
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πŸ“… Day 5: How to Track Mileage Without the Stress

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  πŸ“… Day 5: How to Track Mileage Without the Stress If you drive for business — even occasionally — tracking your mileage could lead to real tax savings. But let’s be honest: nobody wants to carry around a paper logbook or guess their odometer reading every day. Good news: there are smarter (and simpler) ways to do it. πŸš— Why Mileage Matters The IRS allows you to deduct business-related driving at the standard mileage rate , which in 2025 is $0.67 per mile (subject to updates). That means: 100 miles = $67 deduction 1,000 miles = $670 deduction For many solopreneurs, that’s hundreds or even thousands of dollars in write-offs — if you track it properly. ✍️ What Trips Can You Count? Driving to meet a client Picking up business supplies Visiting a vendor or coworking space Attending a business conference or training 🚫 Personal commutes don’t count (like from home to a regular office location). πŸ“± 3 Stress-Free Ways to Track Mileage Mileage Apps (automated, low eff...
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πŸ“… Day 4: Sole Prop vs. LLC vs. S-Corp – Which Saves More?

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  πŸ“… Day 4: Sole Prop vs. LLC vs. S-Corp – Which Saves More? Choosing the right business structure isn’t just a legal decision — it’s a tax-saving strategy. While all three let you run a solo business, they come with different tax treatments, paperwork, and profit potential. Here’s what you need to know: 🧾 1. Sole Proprietor Default status for most freelancers and small business owners. ✔ Easy to set up, no formal registration ✘ You pay self-employment tax (15.3%) on all profits ✘ No legal separation between you and the business ✅ Best for: Just getting started or low-income side hustles 🧾 2. LLC (Limited Liability Company) Gives you legal protection and some flexibility in taxation. ✔ Still simple to run, protects your personal assets ✔ Can choose to be taxed as a Sole Prop or an S-Corp ✘ Still pays self-employment tax unless you elect S-Corp status ✅ Best for: Growing businesses that want liability protection 🧾 3. S-Corporation (via LLC or Inc) Not a ...
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πŸ“… Day 3: What Actually Counts as a Business Deduction?

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  πŸ“… Day 3: What Actually Counts as a Business Deduction? “Can I write this off?” As a CPA, I hear this question all the time — and honestly, it’s a good one. Business deductions aren’t just about saving money on taxes; they’re also about understanding what counts as an ordinary and necessary expense in your field. Here’s a simple breakdown to help make sense of it: ✅ The IRS Rule (in plain English) To be deductible, an expense must be: Ordinary : Common in your industry Necessary : Helpful and appropriate for your business It doesn’t have to be essential — just reasonable. πŸ’Ό Commonly Deductible Business Expenses Office Supplies & Software : Pens, printers, QuickBooks, Canva Pro Marketing Costs : Website hosting, email tools, social media ads Business Meals : 50% deductible when dining with clients or for business travel Professional Development : Courses, certifications, books related to your work Phone & Internet : Pro-rated for business use Mileage o...
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πŸ“… Day 2: 3 Common Tax Myths Small Business Owners Still Believe

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 πŸ“… Day 2: 3 Common Tax Myths Small Business Owners Still Believe Running a business comes with more than just offering great services or products — it also comes with figuring out what’s fact and what’s fiction when it comes to taxes. And unfortunately, there’s a lot of misinformation out there. Let’s clear up three myths I hear all the time — and what the truth actually is. πŸ’­ Myth 1: “If I use my personal credit card, I can’t deduct the expense.” Not true! You can still deduct legitimate business expenses paid with a personal card — as long as they were truly for the business . The key is documentation: save receipts and make a note of why each purchase was business-related. (Still, I always recommend separating your accounts ASAP — it makes tax time so much easier.) πŸ’­ Myth 2: “A home office deduction increases your chance of an audit.” This one is outdated. If your home office meets the IRS rules (used regularly and exclusively for business), then you’re allowed to ...
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πŸ“… Day 1: Why I Started This Blog as a CPA

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  πŸ“… Day 1: Why I Started This Blog as a CPA Hi there — and welcome! I’m a CPA with a deep love for clarity, structure, and empowering small business owners to take control of their taxes. For years, I studied, practiced, and prepared for the CPA exam, and when I finally passed, I thought the journey was over. But in truth, it had only just begun. This blog exists because I’ve seen too many creative, driven entrepreneurs feel overwhelmed or uncertain about their tax responsibilities. Not because they’re doing anything wrong — but because no one ever explained things simply, clearly, and without all the jargon. So here’s the goal: One practical, digestible tax tip each day for 30 days. Whether you're a freelancer, side hustler, online seller, or solo entrepreneur, this series will help you understand how taxes really work — and how to make smarter decisions that support your business and your peace of mind. I’ll cover deductions, business structures, recordkeeping hacks,...
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Do I Need to Pay Myself a Salary as a Business Owner?

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  πŸ’Ό Do I Need to Pay Myself a Salary as a Business Owner? One of the most common questions solo entrepreneurs ask once their business starts generating consistent income is: "Should I pay myself a salary?" The answer depends on your business structure—and choosing the right approach can impact both your tax liability and legal compliance . πŸ‘€ If You're a Sole Proprietor or Single-Member LLC Good news: You don’t need to pay yourself a formal salary. In these structures, the IRS treats you and your business as the same entity. This means: You take an owner’s draw , not a salary. All profits flow through to your personal tax return via Schedule C . You're not considered an employee, so no payroll taxes or W-2s are involved. But remember: You’re still responsible for self-employment tax (which covers Social Security and Medicare), so setting aside about 25–30% of profits for taxes is a smart move. 🏒 If You're an S Corporation Here’s where thi...
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How to Set Up a PTO Plan in ADP RUN Payroll: A Step-by-Step Guide

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  πŸ› ️ How to Set Up a PTO Plan in ADP RUN Payroll: A Step-by-Step Guide Managing paid time off (PTO) is essential to keeping your team happy and compliant with labor policies. If you use ADP RUN , setting up a PTO plan is straightforward — but only if you know where to look. This guide walks you through every step, from setup to payroll integration. Let’s get started. πŸ› ️ Step 1: Access the PTO Settings Log in to your ADP RUN account. In the left-hand navigation menu, go to Settings . Scroll down and select “Paid Time Off” under the Time section. This is where you’ll manage your time-off policies, accrual rules, and employee assignments. ➕ Step 2: Create a New PTO Plan Click Add Plan . Choose your plan type: Vacation , Sick , Personal , or a Custom plan. Click Next and begin configuring the plan. Select which employees will be eligible for this plan. You can create multiple plans if different roles or employee classes require unique policies. ...
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