Small Business Tax
Tax services for small business clients — entity selection, S-corp election, QBI, payroll tax, and the workflows that scale to many SMB clients.
11 articles on this topic.
California Sales Tax on Software 2027: What CPA Firms Need to Know About SB 122
California's SB 122 will extend the state's sales tax to SaaS subscriptions and downloaded software beginning in 2027 — a significant shift that raises operating costs for every CPA firm relying on cloud-based practice management tools. This guide breaks down exactly what the law covers, how much more California firms may pay, and what steps to take now before the effective date.
IRS Standard Mileage Rate Mid-Year Change: What CPAs Must Do Now
A mid-year IRS standard mileage rate adjustment is rare — and it forces CPAs to apply two separate rates to a single tax year's business miles. This guide walks through the split-year calculation methodology, client communication steps, and how AI-native practice tools can reduce the manual burden across your entire mileage-tracking client base.
Non-Filer Back Tax Returns: How CPAs Reconstruct Expenses Without Records
When a non-filer client hands you nothing but a box of cash-deposit records and a vague memory of what they spent, reconstructing Schedule C expenses becomes an exercise in forensic accounting. This guide walks CPAs through IRS-accepted methods, industry expense ratio sources, and the documentation workflow that keeps your firm protected on multi-year back tax engagements.
Increase in Threshold for Requiring Information Reporting
On July 2, 2026, the IRS published a hearing notice for proposed regulations (REG-113229-25) that would raise the dollar thresholds triggering 1099 information reporting and backup withholding for trade or business payments. CPA firms serving self-employed clients, S-corps, partnerships, and nonprofits need to understand the operational implications now — before the public comment window closes.
State Tax Nexus for Growing Clients: How Small CPA Firms Manage Multi-State Compliance
When a business client hires their first remote employee in another state or crosses a sales threshold in a new market, multi-state tax obligations follow immediately. This guide walks small CPA firms through a repeatable workflow for identifying nexus triggers, managing state registrations, and deciding when a referral makes more sense than in-house compliance.
Entity Selection for Startups: How CPAs Choose the Right Structure
Most entity selection articles talk to founders. This one talks to their CPAs. From LLC vs S-Corp vs C-Corp tax modeling to multi-state nexus checks and engagement templates, here is how experienced CPAs structure their new-business advisory workflow — and how AI-native tools are automating the heavy lifting from day one.
Cost Segregation Studies: How CPAs Unlock Hidden Depreciation for Clients
Cost segregation studies are one of the most powerful accelerated depreciation strategies available to real estate clients — yet most CPAs leave them on the table. This guide walks through how to identify qualifying properties, coordinate with engineers, and document results on the return, all without adding headcount.
Returns Relating to Sales or Exchanges of Certain Partnership Interests: What CPAs Must Do Now
The IRS published final regulations on May 20, 2026 modifying information reporting obligations for sales or exchanges of certain partnership interests — specifically those holding inventory or unrealized receivables. CPA firms with partnership clients need to review engagement scope, update intake workflows, and flag affected returns before the next filing deadline.
Passive Activity Rules: What CPAs Must Know to Protect Client Deductions
IRC Section 469 passive activity rules are among the most commonly misapplied provisions in individual and business tax returns — especially for real estate investors, limited partners, and multi-entity business owners. This guide walks CPAs through the seven material participation tests, real estate professional status requirements, passive loss carryforward mechanics, and the AI-assisted validation workflows that catch costly errors before they reach the IRS.
Retirement Plan Options for Self-Employed CPAs: SEP-IRA vs Solo 401k
Most retirement planning content for CPAs focuses on advising clients — not on the CPA as a business owner with variable income and no employer match. This guide breaks down SEP-IRA vs Solo 401k vs SIMPLE IRA contribution limits, tax deduction mechanics, and how solo and small-firm owners can align retirement contributions with estimated tax cycles to maximize savings without cash-flow surprises.
S Corp Election Guide: When and How to File
Your clients on Schedule C may be overpaying self-employment tax by thousands each year — and a timely S-corp election can change that. This guide gives CPAs a clear decision-making framework for when to recommend the election, how to file it correctly, and how to build it into a scalable advisory offering. Stop leaving five-figure savings on the table across your book of business.