Impulse buying refers to unplanned or spontaneous purchases that shoppers make on a whim due to an emotional response at the moment of seeing the item. Impulse buying can happen both in brick-and-mortar stores and online. This guide will explore why people buy impulsively, what items are most frequently purchased, and how you can capitalize…
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What Is a Personal Holding Company (PHC)?
A personal holding company (PHC) is a closely held C corporation (C-corp) where at least 60% of its income is from passive investments like stocks, bonds, and rental activities. Most PHCs result from a business owner operating a business and selling all its assets but failing to distribute the money to the shareholders to avoid…
What Is a Disregarded Entity for Tax Purposes?
A disregarded entity is a business that’s not separate from its owner for federal tax purposes—the owner reports and pays the business portion of income and taxes on their tax return. This information is often reported on Schedule C, but you may also find it on Schedule E or Schedule F. Filing Requirements of Disregarded…
Borrowing Base: What It Is & How to Calculate [+ Calculator]
Borrowing base refers to the maximum amount of funds that can be borrowed based on the value of collateral being pledged for the loan. It is calculated by multiplying a lender’s advance rate or loan-to-value (LTV) threshold by the value of the collateral. For example, if a lender has an advance rate of 80% and…
Hiring Minors: Child Labor Laws & Best Practices
Keeping up with what and how many hours a minor can work can be challenging. Additionally, several states are changing their child labor laws. Learn more.
Child labor laws exist to ensure the safety, well-being, and educational opportunities of minor employees. If your small business employs minors (those aged 14 to 17), you must know and follow federal and state child labor laws. These laws limit work hours and restrict the types of jobs minors can hold, among other things. This…
Guide To Small Business LLC Taxes & LLC Tax Returns
Generally, limited liability company (LLC) taxes are reported as a sole proprietor on Form 1040 Schedule C if there is only one owner or on Form 1065 as a partnership if there are multiple owners. Sole proprietors and partnerships are flow-through entities, so the income is taxed on the owner’s tax return. However, it may…
What Is a Subscription Business Model & How Does It Work?
A subscription business model is a type of business where customers subscribe to goods or services, pay for them at a set recurring rate, and then receive them on a certain cadence. I am confident when I say that everyone reading this article is a customer of a subscription business. Do you have your trash…
What Is a Guaranteed Payment to a Partner?
A guaranteed payment is a specified payment that partnerships pay to their partners for service or use of capital (as if they were made to a person who is not a partner). These payments are made without any regard for the profits of the partnership. The goal of paying guaranteed payments is to assure that…