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…
What is
What Is Accumulated Earnings Tax: How To Avoid It & More
The accumulated earnings tax (AET) is a penalty imposed by the IRS on corporations for keeping earnings for longer than they need to run their businesses rather than paying out dividends to shareholders. The goal of the tax is to discourage corporations from accumulating excessive funds to avoid shareholder-level taxes. Corporations can avoid being exposed…
Clover POS Pricing: Software, Hardware & Processing Fees
With all of its customization options and resellers, Clover’s pricing can be difficult to understand. Our guide will help you make sure you’re getting the best price.
Clover POS is one of the leading small business point-of-sale providers on the market. It has all the tools you need to process transactions, track inventory, and manage customers and staff, plus top-of-the-line hardware and upgrades to support you as you grow. Clover is a POS bundle for various small businesses, including retail, restaurants, and…
What Is a Reasonable Salary for an S-corp Shareholder?
What makes an S corporation (S-corp) salary reasonable depends on several factors, such as the type of work being done, business standards, and company profit. Setting a reasonable salary is important for operating an S-corp and also keeps the IRS from reclassifying your distribution and exposing you to penalties, interest, and additional taxes. Factors Affecting…
What Is Cash Discounting? Small Business Guide
Cash discounting is offering a discount on a product or service to customers who pay with cash. Businesses use cash discounting to avoid credit card processing fees. It is seen more commonly with small or mom-and-pop businesses, especially those with a lot of customers already paying in cash or those with particularly tight margins. How…
Loan-to-Value (LTV) Ratio: What It Is & How To Calculate It
The loan-to-value (LTV) ratio is the amount of your loan relative to the value of the collateral it’s secured by. The LTV ratio is commonly used by lenders in determining whether to approve a loan and the specific rates and terms that will be offered. Examples of loans that commonly use an LTV ratio include…
Radio Advertising: The Small Business Guide
Radio advertising is a tried and tested marketing channel for businesses looking to promote a message to a wide regional audience. In a 30- to 60-second radio commercial, businesses can say more than an online text-based ad with limited reach. In this article, we explore the advantages of advertising on radio, when and how to…
Semi-truck Insurance: Costs, Coverage & Requirements
Semi-truck insurance, also called owner-operator or commercial truck insurance, is a blanket term for a collection of policies for truck drivers. Many of these policies cover truckers’ legal liabilities in different situations, such as hauling cargo or nonbusiness driving. Owner-operators can expect to pay anywhere from $3,000 to $16,000 per year for truck insurance. Whatever…