Business Owners
Most of what we do for business owners happens between returns: the monthly close, the question about hiring, the call before signing a lease. We work with owner-managed companies of every size, from first-year LLCs to businesses passing to a second generation. We would rather answer a question in June than fix it in March.
What a year with us looks like
Running a business means a steady stream of deadlines that have nothing to do with the work you started it for. Our job is to take those off your plate so you can stop keeping track of them, and to make sure you hear from us before a date, not after it.
January to April is filing season. Your W-2s and 1099s go out by January 31. Then come the business return (Form 1120-S for an S corporation, Form 1065 for a partnership, Form 1120 for a C corporation), the state return that goes with it (Alabama, plus any other state you do business in), and the Alabama business privilege tax. Every owner's personal return depends on the business return being finished first, so we set the order early and keep to it.
May to August is when the useful conversations happen. Should you buy the building or keep leasing? Is it time for a second employee? Is your salary still reasonable for what you do? Is the entity you formed five years ago still the right one? None of these has a filing deadline, which is why they tend to get put off until March, when it is too late to act on them.
September to December is projection season. We look at where the year is heading, what you will owe, and what can still change it: retirement contributions, the timing of equipment purchases, and year-end bonuses. If you already have a Solo 401(k), this year's salary deferral generally has to be elected by December 31, so this is the window that matters.
The Alabama side of owning a business
Alabama adds its own layer, and it is where we see owners caught out most often.
- Business privilege tax. Alabama taxes the privilege of doing business, based on net worth rather than profit. A business whose calculated tax is $100 or less now owes nothing and files no return. Above that line the whole amount is due, not just the part over $100, so a growing company can cross it without noticing.
- Sales and use tax. State sales tax is filed through My Alabama Taxes, usually monthly, and cities and counties can levy their own on top. Selling into other states brings Alabama's Simplified Sellers Use Tax and other states' rules into play.
- Withholding. Alabama income tax withheld from pay is reported to the Department of Revenue separately from the federal Form 941, with its own annual reconciliation.
- Licenses. Many cities and counties require a business license that renews each year, separate from anything the state issues.
We keep these on our calendar so they do not have to live on yours.
Not every business stops at the state line. If you have customers, employees or property in other states, you may owe returns there too. The requirements are very similar to Alabama's, and we file those for you as well.
Payroll, and who does what
Most of our clients run payroll through an outside provider. We work alongside whichever provider you use rather than replacing it. We do not run payroll ourselves, but we advise on it, and if you do not have a provider yet we help you choose one and get it set up. We are not affiliated with or paid by any of them, so our only interest is that payroll is right. We make sure the pay items and tax setup are right from the start, check that what the provider files matches your books, and keep employees and contractors classified correctly. Classification is the payroll mistake that costs the most to unwind, because it usually surfaces years later in an audit.
Who we work with
Owner-managed businesses: professional practices, contractors, retailers, restaurants, family companies and first-year LLCs. Some clients have one employee and some have sixty. What they have in common is that the owner makes the decisions and wants someone to talk to before making them.
Our view is that an owner who cannot read their own balance sheet is making decisions on a guess, and fixing that is usually the first thing we do. It does not take an accounting degree. It takes a monthly statement you trust and twenty minutes with someone who will tell you what it means.
If you are weighing an S corporation election, our S corporation calculator gives you a first estimate, and our Alabama business tax deadlines page lists the dates for the next two years.
Questions business owners ask us
When should I talk to a CPA about my business? Before you form the entity, if you can. The choice of LLC, S corporation or partnership decides how you are taxed for years, and changing it later costs more than getting it right the first time. After that, any time a decision involves a large sum: a hire, a lease, a loan, a sale.
Do I need an S corporation? Sometimes. An S corporation can reduce self-employment tax once profit is high enough to cover a reasonable salary plus the extra payroll and filing costs. Below that point it often costs more than it saves. We run your actual numbers before recommending it.
Can you work with my bookkeeper or my payroll company? Yes. Many clients keep their own bookkeeper or provider, and we handle the review, the tax work and the advice. If the books need more help than that, we can take them on.
What does Alabama require from a new business? Usually a state formation filing, a privilege tax return once the tax is over $100, registrations for sales tax and withholding if they apply, and a local business license. Which ones apply depends on what you sell, where, and whether you have employees.
Monthly financials that close on a schedule you can plan around. We reconcile the bank and credit card accounts, go through the profit and loss and the balance sheet with you, and point out what is worth asking about while there is still time to do something. Most owners want one number they trust and a short conversation about what it means.
Clean books, kept current, in whatever system you already use. We categorize transactions, reconcile monthly, and hand back statements your lender and your tax preparer will both accept. If the file is behind, we will tell you how far behind and what catching up will take.
When numbers don’t add up, the stakes are high. We dig deep to uncover discrepancies, protect your interests, and give you a clear picture you can trust.
Cash crunches can stop your business in its tracks. We help you forecast, plan, and manage your cash flow so you’re always prepared for the next opportunity or challenge.
Lenders want three years of statements, tax returns that tie to them, and a projection they are willing to question. We assemble the package, make sure the numbers agree across every document, and join the call with the banker if that helps.
A sale, a buyout, a divorce or an estate filing each need a number that will hold up. We tell you at the start which standard of value applies and why, because the same business is worth different amounts depending on who is asking and what for.
Entity choice, owner compensation, whether to buy the building, when to hire. These are the conversations that happen between returns, and they are usually worth more than the return itself. Bring them to us in June rather than saving them for March.
Moving a business to a child, a partner, or an outside buyer takes years rather than months. We work on the structure, the tax cost of each route, and the order things happen in, alongside your attorney. Most of the good options close once a deal is already on the table, which is why we push people to start this early.
Entity choice, the state formation filing, the EIN, and the payroll and sales tax registrations, in that order. We also set the books up on day one, which costs far less than reconstructing the first year the following March.
Form 990 by May 15th for a calendar-year organization, and the monthly reporting that keeps a finance committee informed in between. We handle the accounting, reporting, and tax needs unique to non-profits so you can focus on impact.
Small mistakes can lead to big problems. We design and implement internal controls that safeguard your assets, prevent errors, and keep your financial operations running with confidence.
When legal matters involve finances, accuracy is everything. We provide clear, defensible financial analysis to strengthen your case and protect your position.
Your money should work for you, not the other way around. Tax is usually the largest single line in a financial plan, so that is where we start. We work with your advisor on the timing of income, retirement plan contributions and charitable giving, and we model what each choice costs in tax before anything is executed.
Guides and calculators for business owners
Are you ready to build your legacy?
Whether it’s tax planning, bookkeeping, or business strategy, we’re here to help.