Scentsy Consultants

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Scentsy Consultants

When Should I Incorporate My Small Business?
Tax Tips For Scentsy Consultants
Payroll Information
Sole Proprietor Vs. S-Corporation
Checklist For 2012 Taxes
Scentsy Related Deductible Expenses
Car Log
Conference Presentation


WHEN SHOULD I INCORPORATE MY SMALL BUSINESS?

You should begin considering incorporation between the “Lead Consultant Stage and the Super-Star Consultant Stage.”

Your group sales should be anywhere from $1,000 to $6,000 a month.  During this time you should maintain regular contact with your CPA who will help determine when incorporating is right for you.

When you reach the stages between “Super-Star Consultant & Super-Star Director,” you should be incorporated for the greatest tax savings.


TAX TIPS FOR SCENTSY CONSULTANTS

1.    Maintain regular contact with your CPA
2.    Tax plan throughout the year
3.    Familiarize yourself with all available deductible expenses
4.    Develop tax strategies for future Scentsy success
5.    Consider retirement planning
6.    Maintain efficient records for all business expenses
7.    Consult with a CPA regarding proper business organization


PAYROLL INFORMATION

Incorporated businesses generating substantial income are required by the Internal Revenue Service to take a “reasonable salary”.  This allows the IRS to collect social security & med icare tax.  A “reasonable salary” has never been truly defined by the IRS; therefore, business owners should meet with a CPA regularly to decide when payroll should begin.

Payroll includes the following items:

•    Monthly paycheck from business to business owner
•    W-2 Wage
•    Monthly & Quarterly Tax Deposits
•    Form 941, 940, TC 941, and form 3 of Utah Unemployment Insurance

Shaw & Associates, P.C. takes care of all your payroll needs, and ensures that all forms, tax deposits, etc., are taken care of on a timely basis.

Please contact us for further details:  801-728-7070


Sole Proprietor Vs. S-Corporation

Sole Proprietor:
If your business is not incorporated, you become a sole proprietor by default. As a sole proprietor your income and expenses are reported on schedule C of your individual tax return. The dis advantages of a sole proprietor are having no liability protection for your personal assets and paying taxes at an extremely high rate, i.e. self employment tax.

S-Corporation:
To become an S Corporation, you must incorporate in the state in which you reside. An S Corporation gives you liability protection for your personal assets. Although there are expenses invol ved in becoming an S Corporation, the savings in tax far exceeds the cost to incorporate. As an S Corporation your income and expenses are reported on a separate tax return.


CHECKLIST FOR 2012 TAXES

  1. W2 Forms & Related Information
  2. 1099 Forms for any Miscellaneous Income/ Retirement Inc./Social Security
  3. Interest Income Statements from Bank(s) relating to checking/savings accounts
  4. Information relating to any Dividends received
  5. Forms & Information relating to Stock Transactions—If you sold stocks or options we will need:
    1. Date you purchased the Sold Stock/Options
    2. Cost Basis of the Sold Stock/Options
    3. Date you sold the Stock/Options
    4. Dollar amount received for the Stock/Options sold
  6. Any Form K1’s received from any Corporations/Partnerships you’re involved in
  7. Mortgage Interest Statements/Amounts related to your personal residence
  8. Property Taxes paid on your personal residence
  9. Property Taxes paid on your personal property (boats, ATV’s, recreational equip.)
    1. Property Taxes paid on vehicles are not deductible in Utah
    2. Property Taxes paid on property other than vehicles is usually deductible
  10. Amounts of Cash/Noncash Donations paid to charitable and/or churches
  11. Medical Expenses from prior year—categorize as:
    1. Prescriptions
    2. Doctor/Dentist
    3. Medical Insurance
  12. Tax Preparation Fees from the prior year
  13. Amounts of Student Loan Interest Paid
  14. Amount(s) of State Refunds received prior year
  15. Amounts & Information relating to moving expenses—dates & miles you moved
  16. Any Income/Expenses related to Dependant Care ( Day Care)
    1. Amounts received or paid for care
    2. Name/Address/Social Security Number of person providing care
  17. Statements of Tuition paid to Universities/Trade Schools as related to Education Credits
  18. If you have Rental Properties/Homes—total income received and list of Categorical expenses
  19. If you have any businesses operated as sole-proprietorship—total income received and list of categorized expenses
  20. Copy of last year’s tax return
  21. Listing of Dependants—names, birthdates, social security numbers

SCENTSY RELATED DEDUCTIBLE EXPENSES

Here is a on-going list of items that may be deductible for Scentsy purposes:

Cost of Products / Supplies
Advertising
Dues
Office Supplies
Sales Tax
Down-Line Gifts
Hostess Fees
Postage / Shipping
Printing
Incentives for Team Members
Conventions / Conferences / Booths / Seminars
Scentsy Parties
Telephone
Meals
Travel
Auto Expenses
Internet
Home Office Expense
Bank Charges
Gifts
Accounting / Legal Fees
Credit Card Fees
Donations
Theft Recovery Fees
Website Fees
Contract Labor

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Check more info on site : http://magnets4energy.cf/

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