Small Business Finance

Most NJ owners assume filing a federal S-Corp election automatically makes them an S-Corp in New Jersey. That's only partially true.

S-Corp salary vs distributions rules are changing in 2026. The IRS is now using AI to flag owners with low wages and high distributions—especially December "catch-up" payrolls. If your business earns $200K–$350K, reasonable compensation should be $85K–$140K, not the $35K–$60K many try. SECURE 2.0 eliminates year-end fixes, and NJ's BAIT election requires aligned wages. Essex County S-Corp owners in therapy, consulting, and agencies face the highest audit risk.

In New Jersey, switching from LLC to S-Corp can save thousands by reducing self-employment taxes — but the savings only work if your profits and payroll strategy make sense. Here’s the full NJ-specific breakdown.

NJ BAIT is one of the biggest federal tax planning opportunities for pass-through businesses. This guide explains who qualifies, how the election works, and why timing (March 15) matters.

Starting a business in New Jersey requires more than forming an LLC — you need the right tax registrations (EIN, NJ-REG, sales tax, payroll). This checklist walks you through the correct order so you avoid penalties.

New Jersey quietly changed several major tax rules heading into 2025 — including expanded taxable services, EV exemption phaseout, QSBS capital gains recognition, and BAIT updates. Here’s what you need to know (and do) now.

Looking for a CPA in Essex County? This guide explains what a small business accountant actually does, typical costs in 2025, what red flags to avoid, and how to choose someone who supports you year-round.

New Jersey business owners often need to pay quarterly estimated taxes to avoid penalties and underpayment interest. NJ quarterly estimated taxes are advance payments of state income tax required when your income isn't subject to withholding. Self-employed individuals, freelancers, and business owners expecting to owe $400 or more in NJ taxes must make quarterly payments to avoid underpayment penalties. Who Must Pay NJ Estimated Taxes? You must make NJ estimated tax payments

Health Insurance Deductions NJ — Make Open Enrollment Count Each fall, small business owners review coverage options — but few realize open enrollment is also a prime time for health insurance deductions NJ planning. Here’s how to make every premium dollar count. Step 1: Evaluate Deductibility Self-Employed/LLC: Premiums are deductible on your personal return if you have net profit. S-Corp Owners: Must pay or reimburse premiums through the business and report on the W-2. Ste

Quarterly Estimated Taxes NJ — Avoid Penalties & Surprises If you’re self-employed or own an LLC or S-Corp, you’re required to make quarterly estimated taxes NJ payments throughout the year. Here’s how to calculate, plan, and stay penalty-free. The 4 Key Due Dates April 15 — Q1 payment June 15 — Q2 payment September 15 — Q3 payment January 15 (next year) — Q4 payment Mark these on your business calendar and set reminders. How Much to Pay — Safe Harbor Rules To avoid underpa

Fractional CFO NJ — A Strategic Partner for Growth Most Main Street owners wear too many hats. A fractional CFO NJ business owners can rely on gives you strategy, insight, and clarity — minus the full-time cost. What a Fractional CFO Does Builds budgets and cash flow forecasts Tracks KPIs (margins, A/R days, break-even points) Advises on pricing, hiring, and capital investment Collaborates with your CPA for tax-smart decisions Why It Matters Owners who use CFO-level guidance

Hiring a Bookkeeper NJ — What’s Right for Your Business? Your first bookkeeping hire is a turning point. Should you bring someone in-house or outsource? Let’s break down the real numbers behind hiring a bookkeeper NJ business owners trust. In-House: Control, But More Overhead ✅ Pros: On-site access, immediate availability ❌ Cons: Salary ($50k+), benefits, training, turnover risk In-house works best for larger operations or multi-entity businesses. Outsourced: Professional Ove

CPA in Livingston NJ — How to Find Your Perfect Match Choosing a CPA is about more than numbers — it’s about trust, communication, and fit. Here’s how to evaluate a CPA in Livingston NJ who truly supports your business goals. 1. Ask About Experience in Your Industry A restaurant, salon, or crypto investor has very different needs. Ask your CPA how many clients like you they serve and what unique issues they’ve handled. 2. Evaluate Technology and Security Your CPA should use

Budgeting for Taxes Monthly NJ — A Smarter Way to Plan Tax season doesn’t have to mean stress. When you practice budgeting for taxes monthly NJ-style , you turn tax time into just another routine business task — predictable, paid for, and under control. Step 1: Know Your Tax Rates For most NJ small businesses, you’ll owe a combination of: Federal income tax (10 – 37 %) NJ income or corporate tax (5.5 – 9 %) Self-employment tax (15.3 %) Local or payroll taxes Your CPA can help

Depreciation Schedules NJ — Why They Matter Your depreciation schedules NJ track the value of business equipment, furniture, and vehicles over time. They ensure you claim the right tax deductions each year and keep your Balance Sheet accurate. Step 1: Create a Fixed Asset Register List each item with: Purchase date Description Cost Estimated useful life Depreciation method (MACRS, Straight-Line, etc.) Step 2: Record Monthly Depreciation Post a monthly or annual journal entry

Loan Paydowns NJ — How to Record Them Correctly Many business owners see a “big payment” to their lender and assume it’s all an expense. It’s not. Here’s how loan paydowns NJ should appear on your books. Principal vs. Interest: What Goes Where Payment Component Financial Statement Why It Matters Principal Balance Sheet Reduces liability, not deductible Interest Profit & Loss (Expense) Deductible business expense Example Monthly payment: $2,000 $1,500 → Loan Principal (Balance

Document Retention NJ — Keep It Safe, Not Stressful Wondering how long to keep receipts, tax forms, or payroll records? Every small business needs a document retention NJ plan that balances compliance with clutter control. The IRS Rule of Thumb Keep business tax records for at least 3 years, but in some cases, up to 7 years or longer. Quick Reference Chart Document Type Minimum Retention Notes Tax Returns & Support Docs 7 years Keep all filed returns & backup records Bank & C

S-Corp Health Insurance W-2 NJ — Get It Right the First Time If you own more than 2% of your S-Corp, your health insurance must be reported properly on your W-2 — or you could lose your deduction. Here’s how to handle S-Corp health insurance W-2 NJ filings accurately. Step 1: Pay the Premiums Through the Company The S-Corp should pay (or reimburse you) for the health insurance policy in the business name. Keep records of each payment. Step 2: Add to W-2 as Taxable Wages (Cod

Owner Draws vs Distributions vs Payroll NJ — How to Pay Yourself Right How you pay yourself affects your taxes, compliance, and audit risk. Here’s how owner draws vs distributions vs payroll NJ differ—and how to get it right. Sole Proprietors & Single-Member LLCs Use owner draws—not payroll. You don’t withhold taxes; instead, you pay income and self-employment tax on profits. Multi-Member LLCs Take distributions and possibly guaranteed payments. Partners are not W-2 employees

Month-End Close Checklist NJ — Streamline Your Books A clean close each month saves hours at year-end and helps prevent tax-time chaos. This month-end close checklist NJ gives you a repeatable, 8-step framework that keeps your books accurate and audit-ready. Step 1: Reconcile Every Account Match your bank, credit cards, and loans to your statements. Investigate differences immediately. Step 2: Record Adjustments Add bank fees, loan interest, and payroll accruals. Step 3: Veri