Author: Scott Grippi

The gig economy thrives on flexibility, independence, and convenience but it also thrives in a tax grey area most DoorDash drivers don’t fully understand until it’s too late. Whether you’re a weekend Dasher or someone hustling full-time, there’s one unavoidable truth: the IRS sees you as self-employed and responsible for reporting every dollar earned.

Does DoorDash Take Out Taxes? No — and That’s a Problem

Many new Dashers mistakenly believe that taxes have already been taken care of because their pay looks clean and straightforward. This is one of the most damaging misunderstandings in the gig economy.

DoorDash operates on a 1099 basis. You’re an independent contractor, not an employee. That distinction changes everything. You are responsible for estimating and paying your income and self-employment taxes (which cover Social Security and Medicare). Ignoring this obligation doesn’t make it disappear. It only grows more expensive the longer you wait.

What Is the DoorDash 1099, and When Do You Get It?

If you earn $600 or more in a calendar year, DoorDash must send you a 1099-NEC form by January 31st of the following year. This document reports your total earnings but doesn’t include any tax withholdings because there are none.

Even if you don’t receive a 1099 for some reason, you’re still legally obligated to report the income. The IRS receives a copy either way.

Many Dashers assume that no form means no taxes. This is dangerous thinking. If you earned even $1 from gig work, it’s taxable. Relying solely on what DoorDash sends you or doesn’t could land you in trouble.

Self-Employment: The Tax Burden No One Talks About

Here’s what most content creators and YouTubers won’t tell you about DoorDash taxes: they’re not just about income. As a self-employed individual, you owe 15.3% in self-employment tax on top of regular income taxes. That’s the hidden cost of independence.

Let’s break it down:

• Self-Employment Tax: Covers Social Security (12.4%) and Medicare (2.9%). Traditional employees split this with their employer. As a Dasher, you pay both halves.
• Federal Income Tax: Based on your total income for the year, which includes your gig earnings and any other income sources.
• State Taxes: Depending on where you live, you may owe additional state income tax.

Delivery Fees and Tax Confusion: Where People Go Wrong

Another area of confusion is the DoorDash delivery fee. Many drivers ask: do I need to pay taxes on the delivery fee? Here’s the truth – it’s all considered income. Whether it’s base pay, peak pay, or a tip, it’s taxable if paid to you. The IRS doesn’t care what part of the transaction it came from.

Gig Work Tax Deductions: The Only Way to Stay Ahead

Here’s where smart Dashers can reclaim some power. Because you’re self-employed, you can deduct legitimate business expenses from your taxable income. But most people don’t track them properly, or at all.

Some commonly missed deductions:

• Mileage (standard IRS rate)
• Phone bill (percentage used for work)
• Insulated bags and equipment
• Parking and tolls
• Repairs and maintenance (if directly related to deliveries)

But this benefit only works if you track diligently. DoorDash won’t do it for you. Most tax professionals recommend using an app to log mileage and expenses automatically. Don’t assume you’ll remember what you did in April or January.

What Happens If You Don’t Pay DoorDash Taxes?

Failing to report your earnings or pay self-employment taxes can have serious consequences:

• Penalties: Late filing, underpayment, and interest charges can stack quickly.
• Audits: The IRS targets self-employed workers more often than traditional employees.
• Liens and Wage Garnishments: In severe cases, the IRS can place a lien on your assets or garnish future earnings.

The biggest myth is that small-time Dashers can fly under the radar. They can’t. Technology has closed that gap. Payment processors, banks, and gig platforms report data directly to the IRS.

Conclusion:

Yes, you have to file taxes for DoorDash. They don’t take taxes out for you. You’re a business owner the moment you accept your first order. Start tracking your income and expenses from day one. If your earnings are consistent, file quarterly estimated taxes. Learn the tax code or work with someone who does. The alternative is expensive.

Running a business means making daily decisions some big, some small. But even your best choices can feel like guesswork if your financial foundation is shaky. And one of the most common mistakes? Treating bookkeeping and accounting as if they’re the same thing.

They’re not.

This misunderstanding leads to poor cash flow management, tax-time panic, missed growth opportunities, and misplaced trust in tools never designed to replace financial expertise.

The real issue? Most people never learned the difference. And that’s costing them.

It’s time to challenge the status quo: bookkeeping and accounting are not interchangeable roles, and understanding their differences might be the turning point for your business.

Bookkeeping: The Backbone of Financial Accuracy

Bookkeeping is the process of consistently recording every financial transaction that occurs in a business. It’s about documentation, structure, and precision.

Bookkeepers track:

• Incoming and outgoing payments
• Invoices and receipts
• Bank reconciliations
• Payroll
• General ledger entries
• Expense categorization

Their role is administrative but vital. A skilled bookkeeper ensures your financial data is up-to-date and organized. They maintain the integrity of your records and give you a snapshot of your current financial position.

But that’s where their job ends. A bookkeeper won’t give you advice on budgeting, scaling, or compliance. They don’t analyze; they record.

You wouldn’t expect your GPS to decide where to go next, it just shows you where you are. That’s bookkeeping.

Accounting: The Brain Behind the Numbers

Accounting, on the other hand, is all about analysis. Accountants interpret the raw data from your bookkeeper to help you make strategic decisions.

Accountants handle:

• Financial statement preparation (Profit & Loss, Balance Sheet, Cash Flow)
• Tax planning and filing
• Budgeting and forecasting
• Strategic financial advice
• Compliance and regulation adherence
• Audits and risk assessments

Where a bookkeeper tells you that you’ve spent $25,000 on marketing, an accountant will ask if that spend aligns with your revenue goals, and suggest alternatives if it doesn’t.

Bookkeeping is past and present.

Accounting is present and future.

An accountant uses what the bookkeeper tracks to:

• Find trends
• Identify inefficiencies
• Advise on growth
• Minimize tax liability
• Prepare your business for funding or sale

This is why accountants typically hold certifications (CPA, CA, etc.) and are trained to evaluate complex financial scenarios. They help you answer the bigger questions:

• Can you afford to hire more staff?
• Are you ready to expand?
• What’s your break-even point?

Without proper bookkeeping, accounting has no reliable data. But without accounting, bookkeeping has no direction. They’re not the same, but they are interdependent.

Why the Distinction Matters for Small Business Owners

Here’s what happens when the two get confused:

• You expect strategic advice from a bookkeeper, only to receive silence when you ask what your numbers mean.
• You overload your accountant with disorganized records, forcing them to clean up messy books instead of giving you the insight you’re paying for.

The software doesn’t interpret. It automates. It’s your responsibility to ensure the right eyes are on your financials.

This confusion is also expensive. You could be:

• Missing tax deductions
• Paying penalties for late filings
• Misunderstanding cash flow
• Making hiring or expansion decisions with flawed data

What About “Accountancy”?

The word “accountancy” is often used, especially in global contexts. It’s an umbrella term that refers to the profession as a whole, covering everything from bookkeeping to high-level financial strategy, auditing, taxation, and advisory services.

Not All Businesses Need Both – But Most Should

Some startups may get by with just a bookkeeper in the early stages. But once revenue picks up, taxes get complex, or funding becomes a goal, you’ll need an accountant to step in.

Other businesses hire an accountant from day one and outsource bookkeeping to software, only to discover that software alone misses error a human would’ve caught.

The smartest businesses treat each role as a specialized part of their financial engine. They don’t waste time fixing financial chaos that could have been avoided with a clear role definition.

Conclusion:

Bookkeeping and accounting are two sides of the same coin, but they serve radically different purposes. One maintains order. The other drives growth.

If you’ve assumed that one can replace the other, it’s time to rethink your approach. Clarify the roles. Invest accordingly. And stop expecting insights from someone just there to keep the records clean.

Starting a small business involves important decisions, one of the biggest being choosing a legal structure. Many small business owners operate as sole proprietors or choose to form a Limited Liability Company (LLC). This article will explain the key differences, especially regarding tax considerations.

What is a Sole Proprietorship?

A sole proprietorship is the simplest type of business structure. It has just one owner, and there is no legal separation between the owner and the business. This means that the owner is personally responsible for all debts and legal actions related to the business.

The main advantage of a sole proprietorship is that it is easy to start and has minimal paperwork. However, the main downside is that there is no legal protection for the owner’s assets in case of lawsuits or debt issues.

What is an LLC?

A Limited Liability Company (LLC) is a legal business structure that provides liability protection to its owners. Unlike a sole proprietorship, an LLC operates as a separate legal entity. It usually shields the owner’s assets, such as their house, car, or personal bank accounts, if the business encounters financial trouble.

LLCs also offer flexibility in taxation, allowing owners to choose between pass-through or corporate taxation. However, forming an LLC requires more paperwork and may involve higher fees depending on the state.

Are Sole Proprietorships Double Taxed?

No, sole proprietorships do not face double taxation. Owners report business income on their tax returns and pay taxes once. This system, called pass-through taxation, ensures the business itself does not pay separate taxes.

In contrast, an LLC may face double taxation only if it chooses to be taxed as a corporation. In this case, the company pays corporate taxes on its earnings, and then the owner pays personal taxes on any dividends received. However, most LLCs are taxed as pass-through entities to avoid double taxation.

Sole Proprietorship Taxes in California

If you operate a sole proprietorship in California, you must pay several types of taxes:

• State income tax: California has a progressive income tax system, meaning the more you earn, the higher your tax rate.
• Self-employment tax: Since sole proprietors don’t have an employer withholding Social Security and Medicare taxes, they must pay self-employment tax, which is 15.3% of net earnings.
• Sales tax: If your business sells taxable goods, you must collect and remit sales tax to the California Department of Tax and Fee Administration.
• Local business taxes: Many cities and counties require businesses to register and pay local business license fees or taxes.

Tax Benefits of Sole Proprietorships

Sole proprietors enjoy several tax benefits, including:

• Pass-through taxation: Owners pay taxes on profits only once, unlike corporations that face double taxation.
• Simple tax filing: Sole proprietors report business income and expenses on Schedule C of their tax return, making tax preparation easier than for corporations or LLCs.
• Business deductions: Sole proprietors can deduct expenses such as home office costs, travel, marketing, and business supplies, which can lower taxable income.

Sole Proprietorship and Self-Employment Taxes

Since a sole proprietorship is not a separate entity, the law considers the owner self-employed. This means they are responsible for paying their own Social Security and Medicare or self-employment tax. The current self-employment tax rate is 15.3%, which includes:

• 12.4% for Social Security
• 2.9% for Medicare

This tax applies to net earnings from the business, and unlike in a traditional job, there are no employer contributions to cover part of the cost.

Should You Choose a Sole Proprietorship or LLC?

A sole proprietorship is best for small, low-risk businesses that want to avoid paperwork and fees. It is a good choice for freelancers, consultants, and independent contractors.

An LLC is better if you want to protect your assets, especially if your business involves higher risks or legal exposure. LLC owners choose their tax structure and decide whether to be taxed as a sole proprietorship, partnership, or corporation.

Conclusion

A sole proprietorship may be the best option if you are starting and want a simple, low-cost structure. However, forming an LLC might be the right move if you need liability protection and more tax options. Always consult a tax professional to determine what works best for your business.

A General Ledger (GL) is the foundation of any accounting system. It records all a business’s financial transactions and helps track expenses, assets, and liabilities. This article will explain what a general ledger is, why it is important, how it works, and how businesses can use it effectively.

What is a General Ledger?

The meaning of gl in accounting is a General Ledger. It  is record-keeping system businesses use to track financial transactions. It organizes all financial data into different accounts, such as:

1. Assets: These are the valuable resources the business owns, including cash, inventory, accounts receivable, equipment, and property. Assets provide economic benefits and help the business operate efficiently.
2. Liabilities: These represent the obligations or debts the business owes to others, such as loans, accounts payable, mortgages, and accrued expenses. Managing liabilities is essential for maintaining financial ledgers stability.
3. Equity: This refers to the ownership interest in the business. It includes the owner’s investment, retained earnings, and stockholder equity. Equity reflects the residual value of assets after deducting liabilities.
4. Revenue: Revenue represents the money a business earns from its primary operations, such as sales, service, and rental income. It is a key indicator of a company’s financial performance.
5. Expenses: These are the costs incurred by the business in its operations, such as rent, salaries, utilities, office supplies, and marketing expenses. Tracking expenses helps in budget management and profitability analysis.

Each transaction recorded in a general ledger affects at least two accounts. This process is called double-entry accounting, one account is debited, and another is credited. This ensures accuracy and maintains balance in financial records.

Why is a General Ledger Important?

A general ledger is crucial for businesses because it:

• Ensures Accuracy: The general ledger helps maintain correct financial records by tracking every transaction. Accurate records prevent discrepancies and fraud.
• Tracks Business Performance: By organizing financial data, businesses can analyze income and expenses over time. This helps measure profitability and identify growth opportunities.
• Aids in Decision-Making: Business owners and managers use general ledger data to make informed decisions about budgeting, investments, and operational improvements.
• Simplifies Financial Reporting: The general ledger is the primary source for preparing financial statements such as the balance sheet, income statement, and cash flow statement.
• Ensures Compliance: A well-maintained general ledger helps businesses meet tax and legal requirements. It provides accurate financial data needed for audits and tax filings.

How Does a General Ledger Work?

Every financial transaction is first recorded in a journal with details such as date, description, amount, and affected accounts. Each entry then has a debit and a corresponding credit entry to maintain balance.

At the end of an accounting period, accountants prepare a trial balance by summing up all accounts’ debit and credit balances. After verifying its accuracy, they use the financial data to create key reports like the income statement, balance sheet, and cash flow statement.

Components of a General Ledger

A general ledger consists of several components that help businesses manage their finances efficiently:

• Chart of Accounts: A structured list of all accounts categorized under assets, liabilities, equity, revenue, and expenses.
• Journal Entries: These entries include details like transaction type, amounts, and affected accounts.
• Debit and Credit Columns: Debits increase asset and expense accounts, while credits increase liability, equity, and revenue accounts.
• Balances: Balances help in financial reporting and decision-making.

Common Mistakes in Managing a General Ledger

1. Not Recording Transactions Promptly: Delays in recording transactions can lead to inaccurate financial data and report miscalculations.
2. Ignoring Small Expenses: Even minor expenses should be recorded to maintain an accurate financial picture. Over time, small expenses can add up and impact financial analysis.
3. Forgetting to Reconcile Accounts: Regular reconciliation of the ledger with bank statements ensures that financial records are accurate and current.
4. Misclassifying Transactions: Placing expenses or income in the wrong account can distort financial reports and mislead decision-makers.

Conclusion

A ledger records all financial activities, ensuring accuracy and helping businesses make informed decisions. Whether you are a small business owner or a large corporation, maintaining a well-organized ledger is essential for financial success. By using accounting software and following best practices, businesses can ensure their ledger remains accurate and useful for financial planning and reporting.

Money management is a crucial skill that can help you achieve financial stability and long-term success. Whether you’re trying to get out of debt, save for the future, or simply manage your everyday expenses, having a strong financial plan is key.

In this article, we’ll explore essential money management tips that will set you on the path to financial freedom.

Why Money Management is Important

Proper money management allows you to:

• Gain control over your financial future.
• Reduce financial stress and anxiety.
• Save for important life goals like buying a house or retirement.
• Avoid debt and improve overall financial health.

Setting Financial Goals

Short-Term Goals

Short-term goals can include saving for a vacation, paying off small debts, or building an emergency fund.

Long-Term Goals

Long-term goals may involve purchasing a home, saving for retirement, or investing in a business.

Creating a Budget

Why You Need a Budget

A budget helps you track where your money goes, prevents overspending, and ensures you save for future needs.

How to Set Up a Budget

1. Calculate your total income.
2. List all expenses (fixed and variable).
3. Allocate funds for savings and investments.
4. Adjust spending as needed.

Tracking Your Expenses

Use budgeting apps or maintain a financial journal to monitor your expenses. Identifying spending patterns can help cut down unnecessary costs.

The Importance of an Emergency Fund

An emergency fund acts as a financial cushion for unexpected expenses such as medical bills, car repairs, or job loss. Aim to save at least three to six months’ worth of living expenses.

Saving Strategies for Financial Success

The 50/30/20 Rule

• 50% of income for necessities.
• 30% for wants.
• 20% for savings and debt repayment.

Automating Your Savings

Set up automatic transfers to your savings account to ensure consistent savings without effort.

How to Reduce Unnecessary Expenses

• Cut back on subscriptions you don’t use.
• Cook at home instead of eating out.
• Shop smart with discounts and cashback offers.

Managing Debt Effectively

Good Debt vs. Bad Debt

Good debt (like student loans or mortgages) can build your financial future, while bad debt (like credit card debt) drains your finances.

Strategies to Pay Off Debt Faster

• Use the snowball method (paying small debts first for motivation).
• Try the avalanche method (paying high-interest debts first).
• Consider debt consolidation if necessary.

Smart Investing for Beginners

Understanding Different Investment Options

Investing in stocks, mutual funds, or real estate can grow your wealth over time.

Risk Management in Investing

Diversify your investments to reduce risks and never invest money you can’t afford to lose.

Building Multiple Income Streams

Having multiple sources of income (side hustles, freelancing, investments) provides financial security and accelerates wealth-building.

The Role of Credit Scores in Financial Success

How to Improve Your Credit Score

• Pay bills on time.
• Keep credit utilization low.
• Avoid unnecessary credit inquiries.

Mistakes to Avoid

• Maxing out credit cards.
• Ignoring credit report errors.
• Missing payments.

Retirement Planning Tips

Start saving for retirement early. Contribute to 401(k) plans or IRAs and take advantage of employer matches to maximize savings.

Avoiding Common Money Management Mistakes

• Not having a financial plan.
• Overspending beyond your means.
• Ignoring the importance of saving early.

Conclusion

Managing money wisely requires discipline, planning, and consistency. You can secure a financially stable future by setting clear financial goals, budgeting effectively, reducing unnecessary expenses, and investing smartly. Start today and take control of your financial destiny.

FAQs

Renting out a home or property can be a great way to earn extra money, but it also comes with tax responsibilities. The IRS considers rental income taxable, and it is important to understand how it works. This article will cover everything you need to know about rental income, taxes, and ways to reduce your tax burden.

What Is Rental Income?

Rental income is any money you receive from renting out a property. This includes:

• Monthly rent payments from tenants
• Advance rent payments
• Security deposits (if you keep part of it)
• Fees for services like parking or utilities
• Payments from renting out a room in your home

Is Rental Income Considered Earned Income?

No, rental income is not considered “earned income.” Earned income comes from wages, salaries, or self-employment. Rental income is considered “passive income,” which means you earn it without actively working for it.

How Is Rental Income Taxed?

Rental income is taxed as ordinary income. The tax rate depends on your total income and tax bracket. Here’s how it works:

1. Add your rental income to your other sources (salary, business income, etc.).
2. Deduct allowable expenses, which include mortgage interest, property taxes, repairs, and maintenance.
3. Pay tax on the net rental income (total income minus expenses).

What Tax Deductions Can You Claim on Rental Income?

The good news is that you can deduct many expenses related to rental property. These include:

• Mortgage interest
• Property taxes
• Home Insurance
• Repairs and maintenance
• Property management fees
• Advertising costs
• Depreciation (value reduction of the property over time)
• Utilities (if you pay them)
• Legal and accounting fees

These deductions help reduce the amount of taxable income, lowering your tax bill.

Can You Avoid Paying Taxes on Rental Income?

While you cannot completely avoid taxes, you can reduce them by:

• Deducting all allowable expenses
• Using depreciation to lower taxable income
• Writing off travel costs related to property management
• Living in the property for a few years before renting it (this can qualify you for homeowner tax benefits)
• Conducting a 1031 exchange (selling a rental property and buying another to delay taxes)

Does Rental Income Affect Social Security?

No, rental income does not affect Social Security benefits because it is not considered earned. However, if you run a rental business (providing services like housekeeping), the IRS may classify it as self-employment income, which can affect Social Security taxes.

What Is the Tax Rate for Rental Income?

The tax rate depends on your total taxable income. Here’s a general idea:

• If you earn less than $44,725, your federal tax rate is around 12%.
• If you earn between $44,726 and $95,375, your tax rate is around 22%.
• Higher incomes can be taxed up to 37%.

State taxes also apply, and some states offer deductions for rental expenses.

How to Invest in Rental Property in Different States

When investing in rental properties in different states, consider:

• State-specific tax laws
• Property management services
• Travel costs for inspections
• Different rental market trends

Some states have better tax benefits for rental property owners than others.

Is Rental Property Considered a Business?

If you actively manage multiple properties, provide extra services (cleaning, maintenance), or operate through a company, the IRS may consider your rental property a business rather than a passive income. This can impact your tax situation.

If you run a business and want to lease a home under the business name, you may be able to do so, but the lease terms depend on the landlord’s agreement. Some businesses rent homes for employees as part of company benefits.

How to Get a Rental in Another State

If you want to rent a home in another state, follow these steps:

1. Research the rental market and prices.
2. Find a local real estate agent or property manager.
3. Check lease agreements and state-specific rental laws.
4. Arrange virtual or in-person property tours.

Conclusion

Rental income can be a great source of money, but it comes with tax responsibilities. Understanding how to report rental income, what deductions to take, and how to lower taxes is key to keeping more of your earnings. Always keep proper records and consult a tax professional if needed.

Citadel LLC, the powerhouse hedge fund led by billionaire Ken Griffin, is once again under financial scrutiny. The firm is reportedly exposed to nearly $1 trillion in over-the-counter credit default swaps (CDS) while maintaining just $400 million in cash—translating to a staggering leverage ratio of 2,500:1. Such disproportionate exposure to derivatives, especially in increasingly illiquid markets, paints a precarious picture for a firm often lauded for its aggressive, high-frequency strategies. While Citadel remains secretive about much of its internal financials, off-balance-sheet derivative positions have drawn mounting attention, and now, growing alarm.

This isn’t the first time Citadel has stared into the abyss. In 2008, the firm lost billions during the financial crisis, with some funds down more than 50% at their lowest point. A multi-billion-dollar emergency loan from several banks was needed to prevent collapse. Again in March 2020, during the onset of the COVID crisis, Citadel suffered substantial losses—particularly in fixed income—only to rebound later. But this recurring pattern of near-collapse underscores a larger systemic risk, especially given Citadel’s massive footprint in global capital markets.

Now, Citadel’s vulnerabilities appear more exposed than ever. Recent reports suggest the firm issued bonds to pay off investor redemptions—an unusual move for a hedge fund of its caliber—and sold off portions of its operations to shore up liquidity. Meanwhile, the macroeconomic backdrop is rapidly deteriorating: both M1 and M2 money supply levels have dropped to dangerous lows, with the Federal Reserve’s ongoing quantitative tightening further draining liquidity from the financial system. Calls are growing for the Fed to establish an emergency liquidity facility for hedge funds engaged in basis trades—a move that underscores how deeply this crunch is now affecting even the biggest players.

Citadel’s decision to relocate its headquarters from Chicago to Miami in 2022, officially due to quality-of-life concerns, is now being viewed through a more strategic lens. Florida’s favorable asset protection laws and business-friendly bankruptcy environment raise questions about whether the move was also a hedge against future instability. With shrinking liquidity, tightening capital access, and extraordinary leverage, Citadel may no longer have the room to maneuver it once enjoyed. The question now isn’t just whether the firm will survive the next shock—but how long it can endure this one.

Starting a business is exciting, but it also comes with many decisions. One of the most important choices is deciding the legal structure of your business. Many small business owners form a Limited Liability Company (LLC) because it offers flexibility, protection, and tax benefits. In this guide, we’ll explain the tax advantages of an LLC in simple terms so you can understand how it can help your business save money.

What is an LLC?

An LLC, or Limited Liability Company, is a type of business structure that combines the best features of a corporation and a partnership. It protects your assets (like your home or car) if your business has legal or financial trouble. At the same time, it offers tax benefits that can help you save money.

How Does an LLC Work for Taxes?

One of the biggest advantages of an LLC is its flexibility in how it is taxed. Unlike a corporation with a fixed tax structure, an LLC can choose how it wants to be taxed. This flexibility allows business owners to pick the option that saves them the most money. Here are the main tax options for an LLC:

1.    Pass-Through Taxation (Default Option)

By default, the IRS treats an LLC as a “pass-through” entity. This means the business itself does not pay taxes. This avoids the “double taxation” corporations face, where the business and the owners pay taxes on the same income.

2.    Taxed as a Sole Proprietorship (Single-Member LLC)

If your LLC has only one owner (called a “single-member LLC”), the IRS treats it as a sole proprietorship for tax purposes. You report your business income and expenses on your tax return using Schedule C. This is simple and avoids the need for a separate business tax return.

3.    Taxed as a Partnership (Multi-Member LLC)

If your LLC has multiple owners, the IRS treats it as a partnership. The LLC files an informational tax return (Form 1065), but the profits and losses are passed to the owners. Each owner reports their share of the income on their tax return using Schedule K-1.

4.    Taxed as a Corporation (S-Corp or C-Corp)

An LLC can also choose to be taxed as a corporation. This is less common but can be beneficial in certain situations.

S-Corp Taxation:

This allows owners to pay themselves a salary and take additional profits as distributions, which can reduce self-employment taxes.

C-Corp Taxation:

This is usually chosen by larger businesses that want to reinvest profits into the company or take advantage of corporate tax rates.

Key Tax Advantages of an LLC

Now that you understand how an LLC can be taxed let’s look at the specific tax benefits it offers:

Pass-Through Taxation Saves Money

The default pass-through taxation of an LLC avoids double taxation. In a corporation, the business pays taxes on its profits, and then the owners pay taxes again on dividends. With an LLC, profits are only taxed once, at the owner’s tax rate. This can result in significant tax savings.

Flexibility in Tax Treatment

As mentioned, an LLC can choose how it wants to be taxed. This flexibility allows you to choose the best option for your business. For example, if you want to reduce self-employment taxes, you can choose S-Corp taxation.

Deductible Business Expenses

LLCs can deduct many business expenses, which reduces taxable income. Common deductions include:

• Office supplies and equipment
• Rent or mortgage for business space
• Employee salaries and benefits
• Travel and meal expenses
• Marketing and advertising costs
• By lowering your taxable income, these deductions help you save money on taxes.

Self-Employment Tax Savings (S-Corp Option)

You can save on self-employment taxes if your LLC is taxed as an S-Corp. As an LLC owner, you must pay self-employment taxes (Social Security and Medicare) on your income. However, with S-Corp taxation, you can pay a reasonable salary and take the rest of your income as distributions.

Conclusion

An LLC offers many tax benefits to help your business save money and grow.  If you’re considering forming an LLC, consult with a tax professional or attorney to ensure you make the best decisions for your situation. With the right planning, an LLC can be a powerful tool for achieving your business and financial goals.

Now, let me be clear: our economy is flashing warning signs that we cannot afford to ignore. Several key indicators—M1 and M2 money supply declines, the Hindenburg Omen, the Titanic Indicator, and the Buffett Indicator—are all sounding alarms. These aren’t fringe analytics; they represent deep systemic concerns tied to liquidity, valuation, and market psychology. Add to this the inversion of the 10-year Treasury yield—twice—a historically reliable predictor of recession, and the storm clouds grow darker by the day.

Economic instability is being further fueled by inconsistent policy from the current administration. Erratic trade moves and the imposition of tariffs have already triggered a $4 trillion loss in S&P market value. Business leaders who once embraced the environment of tax cuts and deregulation are now voicing frustration and uncertainty. The erosion of consumer confidence and CEO sentiment signals more than political disillusionment—it hints at a deeper economic dislocation already underway.

Meanwhile, the Federal Reserve has slashed its growth projections while acknowledging rising inflation. Its policy pivot toward quantitative tightening—meant to reverse years of excess stimulus—has begun to choke liquidity from the system. This has left overleveraged banks and hedge funds gasping for cash, exposing the fragility that lies beneath the glossy surface of market optimism.

And now, the smart money is preparing. Warren Buffett, once famously “greedy when others are fearful,” is now sitting on a record $320 billion in cash, reducing his stake in Apple and pulling back from overvalued sectors. That kind of positioning speaks volumes. But he’s not alone. Michael Burry, the legendary investor who predicted the 2008 housing crash, issued a chilling warning: “The mother of all crashes is coming.” His words aren’t the cries of a sensationalist—they’re the calculated alert of someone who’s read this playbook before.

In times like these, vigilance is not paranoia—it’s prudence. Policymakers, business leaders, and investors must resist complacency and start preparing for the next downturn before it arrives. That means focusing on sustainable growth, reducing systemic risk, and reevaluating financial models built on assumptions of perpetual liquidity. The storm isn’t coming—it’s already forming offshore. The question is: who’s ready to weather it?

Managing finances is one of the most important tasks for small businesses. Bookkeeping services help track income, expenses, and overall financial health. Many online bookkeeping services make it easier and more affordable for small businesses to manage their books.

Here are the seven best online bookkeeping services for small businesses.

1.    Bench

Bench is a popular online bookkeeping service designed specifically for small businesses. It provides a dedicated bookkeeper who handles your financial records, ensuring accurate tracking of income and expenses.

One of Bench’s main advantages is its user-friendly platform. Business owners can easily access financial reports, categorize expenses, and communicate with their bookkeepers.

Pros:

• Easy-to-use platform
• Dedicated bookkeeper
• Monthly financial reports
• Tax support included

Cons:

• No payroll or invoicing services
• Only works with small businesses

2.    QuickBooks Live

QuickBooks Live is an online bookkeeping service offered by QuickBooks, one of the most trusted accounting software providers. This service connects you with a professional bookkeeper who helps manage and review your financial records.

Business owners using QuickBooks for accounting can easily add a bookkeeping service without additional software. The service also provides real-time financial insights.

Pros:

• Works with QuickBooks software
• Real-time financial insights
• Trusted and widely used
• Professional bookkeepers available

Cons:

• No tax filing services
• More expensive than some competitors

3.    Bookkeeper.com

Bookkeeper.com offers a full range of bookkeeping services, including financial management, payroll processing, and tax preparation. It is an excellent choice for small businesses needing more than basic bookkeeping.

One of Bookkeeper.com’s biggest advantages is its comprehensive service offering. Businesses can access payroll support, invoicing, and financial planning services. It is inconvenient for business owners who prefer managing their finances on the go.

Pros:

• Comprehensive services
• Payroll and tax support
• Professional accountants available

Cons:

• Higher pricing
• No mobile app

4.    FreshBooks

FreshBooks is a well-known accounting software that also offers bookkeeping services. It is particularly popular among freelancers and small business owners who need a simple, easy-to-use financial management tool.

One of FreshBooks’s best features is its automated invoicing system. Business owners can create and send invoices, track payments, and manage expenses from a single platform. It does not include payroll processing, so businesses needing payroll support must look elsewhere.

Pros:

• User-friendly software
• Automated invoicing and payment tracking
• Good customer support
• Integrates with business apps

Cons:

• Limited bookkeeping services
• No payroll services

5.    Wave

Wave is a free bookkeeping and accounting software with optional paid bookkeeping support. It is an excellent option for startups and small businesses looking for a cost-effective way to manage their finances.

Wave’s main advantage is that its basic bookkeeping software is completely free.. For those who need professional bookkeeping help, Wave offers a paid support service at an affordable price. It also lacks some advanced features that larger businesses may require.

Pros:

• Free software for bookkeeping
• Affordable bookkeeping support is available
• Easy-to-use interface

Cons:

• Limited customer support
• No advanced features

6.    Xendoo

Xendoo provides online bookkeeping and tax services tailored for small businesses. It is known for its fast and efficient service, which helps business owners manage their finances without spending too much time on bookkeeping.

One of Xendoo’s biggest benefits is its tax support. The service includes tax preparation and filing, ensuring businesses comply with tax laws. Additionally, its premium services come at a higher cost.

Pros:

• Tax support included
• Fast and efficient service
• Integrates with major accounting software

Cons:

• No payroll services
• Higher cost for premium services

7.    Pilot

Pilot is a bookkeeping service designed for startups and growing businesses. It provides accurate financial tracking with the help of professional accountants and offers a hands-on approach to financial management.

The service ensures that all financial data is properly recorded and categorized, making it easier for businesses to make informed financial decisions. Pilot is more expensive than many bookkeeping services.

Pros:

• Ideal for startups
• Tax preparation included
• High-quality bookkeeping
• Professional accountants handle records

Cons:

• Expensive compared to competitors
• No invoicing or payroll services

Conclusion

Choosing the right bookkeeping service depends on your business needs and budget. No matter your choice, having a bookkeeping service helps you save time and focus on growing your business. Consider your needs and pick the best service to keep your finances in order!