I want to discuss how e-commerce businesses can efficiently develop a tax planning strategy. The reality in many situations is that accountants aren’t saving tax money for your e-commerce business. Most accountants will file a tax return on your behalf and will not help you strategize. Online solutions like Taxact, H&R Block, Turbo Tax, and other online solutions will also not help you strategize.
Opening an LLC does not save you money on your taxes (LLC vs no LLC has the same impact on how you are taxed). If you’re self-employed, default rules are that the IRS double taxes you and you pay income taxes and you pay Self Employment Taxes. My biggest advice for e-commerce business owners with profit that exceeds $50K is to structure their business as an S-Corp. Income from S-Corps is not subject to employment taxes, which gets rid of the “double tax.”
About Chris Rivera
Chris founded the E-commerce Accountants in 2019, which specializes in tax, accounting, and business structuring for eCommerce companies. Before the start of his firm, Chris spent six and a half years with Ernst & Young specializing in tax and accounting for retail consumer products and service companies. During this time, Chris worked with entirely with multinational businesses (both public and private) providing services including business structuring, accounting consulting, auditing, tax compliance, and tax planning. Chris graduated from the University at Albany and is a New York State Certified Public Accountant.
About E-commerce Accountants
E-Commerce Accountants was founded in 2019 and specialize in tax, accounting, and business structuring for e-commerce companies. The firm works with some of the most high-profile and influential individuals and businesses in the e-commerce space, which include digital marketers, drop shippers, Amazon automation, Amazon FBA, and internet coaches and gurus. E-commerce Accountants focuses explicitly on the e-commerce niche, making them a valuable and imperative resource to e-commerce businesses. Many private practice CPAs run a “drop off” service business, meaning that their clients likely only speak to them once a year (tax return time or when an issue arises). E-commerce Accountants maintains an ongoing dialogue with clients to serve as a value-add truly. https://theecommerceaccountants.com/
About Digital Icons from eCommerce Next:
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