As most of you know by now, New Frontier has moved to 810 High Street
in Baldwin City. In the new Baldwin City
Business Center, we have more room to work in and more parking for our
customers. This move is an upgrade, largely
due to a successful couple of years that we are grateful for. Thank you for being our customers, for
bringing us your tax, bookkeeping, and payroll business. We will continue to provide affordable,
accurate, and local service with a smile. It is our hope your business and
personal endeavors flourish in 2019.
A nonprofit organization is organized like a corporation to
do work that benefits the public. The organization can receive both state and
federal tax-exempt status. The business files a form 1023 with the IRS for
recognition of exemption under Section 501(c)(3) of the IRS code and registers
with their state. A fee applies to the application.
The exempted purposes are set forth in Section 501(c)(3) of the
Internal Revenue Code and include:
charity (relief of the poor, the distressed, or the underprivileged);
advancement of education or science;
testing for public safety;
fostering national or international amateur sports competitions;
preventing cruelty to children or animals,
advancement of religion;
advancement of literary work;
erecting or maintaining public buildings, monuments, or works;
lessening the burdens of government;
lessening neighborhood tensions;
eliminating prejudice and discrimination;
defending human and civil rights secured by law; and
combating community deterioration and juvenile delinquency.
Most tax-exempt organizations other than churches are
required to file an annual information return or notice with the IRS. Organizations that fail to file for 3 consecutive
years automatically lose their tax-exempt status. A nonprofit organization can
also jeopardize its exempt status by participating in nonexempt activities as
listed on the IRS website “How to Stay Exempt;” https://www.irs.gov/charities-non-profits/how-to-stay-exempt-1
New Frontier Tax and Business Services can help you with your start-up activities, tax planning, bookkeeping, and payroll. Give Pam or Robb a call at 785-594-1204 or send an e-mail to
In case you haven’t noticed, new businesses have been sprouting
around Baldwin City, filling the older buildings with brand new enterprises and
livening up the downtown sidewalks and brick roads. Every new business faces
the same initial question, “what business structure will I take?” The business structure you choose influences
everything about how you do business. You can find these classifications
spelled out on the IRS
website and listed here.
Sole Proprietor or
Perhaps you are a sole proprietor, a person who owns an unincorporated business
by himself or herself. Or, you may
choose to establish a partnership, which is a business relationship between two
or more persons who expect to share the profits and losses of the business
venture in predetermined percentages and pass through these gains and losses to
their personal tax returns.
You may want to incorporate your business, which means you
form a taxable entity and exchange money or property or both for the
corporation’s capital stock. The S corporation is
a form of corporation that passes through its gains and losses to its
shareholders. Only certain corporations can be S corporations.
You can also form an LLC according to the laws of the state
you operate in unless your business is a bank or insurance company. According
to the small business administration (SBA),
LLCs protect you from personal liability. In most instances, your personal assets—like
your vehicle, house, and savings accounts—won’t be at risk in case your LLC
faces bankruptcy or lawsuits.
An LLC is treated by the
IRS for tax purposes as either a partnership that passes through income and
losses to its members (owners) or as a corporation and is a taxable
entity. An LLC can have only one owner
(a single member) in most cases and is treated by the IRS, for tax purposes, as
an entity not separate from the individual owner.
New Frontier Tax and Business Services can help you with
your start-up activities, tax planning, bookkeeping, and payroll. Give Pam or Robb a call at 785-594-1204 or
send an e-mail to firstname.lastname@example.org
Many of our customers are both employed and self-employed,
painting a tax picture that reveals itself slowly as incomes, deductions, and
taxes paid are added and subtracted from a variety of the tax forms. If you just finished your 2018 taxes, this is
a good time to review how well your business and employment worked together to
pay your 2018 tax bill.
Personal: Review your
On the personal side, review your W-4 form with the payroll
or human resources manager at your place of employment. The W-4 is the form you fill out that tells your
employer how much tax to withhold from your paycheck. Did you pay too much and receive a big refund
or pay too little and owe a lot, perhaps even having to pay fines for
underestimating? The taxes withheld from
your paycheck reflect your filing status (single, married, head of household)
and the dependents you claim. Check to
make sure the information on your W-4 form is accurate.
Business: Set up a
Paper and an Electronic Filing System
On the business side, make yourself a filing system so you
can organize your receipts and invoices in folders or envelopes if your receipts
are paper and in computer files and folders if your receipts and invoices are
electronic. Most likely you will need
both paper and electronic files. Determine the categories your business expenses
and income usually fall into and make folders and files that are named accordingly.
Things like fuel, feed, seed, pesticide, replacement animals, veterinarian
bills, equipment repairs and maintenance, and new equipment purchases are
common expenses in a farming business. Check to see that your online folders
are named the same as your paper files and then use that same name to enter the
expenses in your Excel table or quick books program.
Track and File Weekly
File and enter your expenses weekly or monthly to avoid the
pain of finding yourself in February of 2020 sorting stacks of receipts at the
kitchen table for tax year 2019. You are bound to miss something and spend a
lot of time searching for missing receipts.