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Small Business Tax

Tax compliance and advisory for New Jersey small businesses.

No commitment Document instructions after acceptance Written response only

Quick Answer

  • Federal and NJ business tax returns for S-Corps, LLCs, partnerships, and sole proprietorships under a written scope
  • NJ Business Alternative Income Tax (BAIT) lets an eligible pass-through entity make an annual entity-level election and allocate the prescribed member credits. Any federal entity deduction, member-credit use, QBI, individual SALT-cap interaction, residency-credit effect, and net result must be computed on the complete entity and owner returns
  • QBI deduction (ordinarily up to 20%, with a new minimum $400 deduction for taxpayers with at least $1,000 of aggregate QBI from active businesses they materially participate in) is now permanent under OBBBA (signed July 4, 2025); 100% bonus depreciation is permanent for qualifying property acquired after January 19, 2025, with transition rules for earlier acquisitions
  • NJ caps Section 179 at $25,000 (vs. federal $2,560,000 for 2026) and does not allow bonus depreciation on NJ returns
  • Entity-tax treatment analysis compares S-Corp, LLC, or partnership tax consequences using the complete facts; no outcome is promised
Overview

Small business CPA services may include accepted federal and permitted-state business tax return preparation for S-Corps, LLCs, partnerships, and sole proprietorships. A written scope may also cover specified BAIT-election analysis, estimated-payment calculations, and entity-tax analysis, with the fee for each accepted return quoted in writing; the client transmits elections, filings, and payments unless the scope expressly assigns a submission.

Running a small business in New Jersey involves federal and NJ tax requirements such as BAIT. Monaco CPA handles only the return, calculation, and advisory work stated in the accepted written scope; the client tracks deadlines and transmits filings and payments unless the scope expressly assigns a filing.

An accepted written scope may cover an existing S-Corp, LLC, partnership, or sole proprietorship. The entity, return, forms, jurisdictions, records, and deliverables are identified from the business's actual facts.

Beyond filing returns, an accepted written advisory scope may cover entity-tax treatment, owner compensation, deduction classification, and other specified tax questions using client-supplied facts. Monaco CPA does not monitor accounts or deadlines. The One Big Beautiful Bill Act (OBBBA) made several key provisions permanent for 2026 and beyond: the QBI deduction (Section 199A) is now permanent, bonus depreciation is restored to 100% for qualifying property acquired after January 19, 2025 (with transition rules for earlier acquisitions), and the more-than-$20,000-and-more-than-200-transaction Form 1099-K mandatory-reporting threshold applies to third-party-network (TPSO) transactions (OBBBA Section 70432). Payment-card merchant acquirers have no federal de-minimis threshold, and a TPSO may issue below its mandatory threshold. Depending on the taxpayer's facts, these changes can affect entity analysis, depreciation, or information reporting.

Entity tax analysis: After a business has been legally formed, Monaco CPA can compare LLC, S-Corp, and C-Corp tax treatment and evaluate a federal Form 2553 election. Monaco CPA does not form entities, provide legal advice, obtain EINs, act as a registered agent, file DBAs, or open business bank accounts. Use New Jersey's official business portal for government filing information and independent legal counsel for formation advice.

Industry context: The industries overview contains general examples of records and return questions. A listed business type is not a claim of experience, a conclusion that a rule applies, or a promise that work will be accepted.

OBBBA updates (effective 2025-2026): The One Big Beautiful Bill Act made the QBI deduction (Section 199A) permanent, meaning qualifying pass-through businesses continue to deduct up to 20% of qualified business income with no sunset, and added a minimum $400 deduction for taxpayers with at least $1,000 of aggregate QBI from active trades or businesses in which they materially participate. 100% bonus depreciation is also permanent for property acquired and placed in service after January 19, 2025, reversing the TCJA phase-down. The Section 179 limit for 2026 is $2,560,000.

Personal Review

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Greg has been quoted in Yahoo Finance and GOBankingRates on deduction rules, withholding mechanics, and filing considerations for small business owners and self-employed taxpayers. No outcome is promised.

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What's Included

  • Federal and NJ business tax return preparation
  • S-Corp, LLC, partnership, and sole prop returns
  • NJ BAIT election analysis; client transmission unless expressly assigned
  • Reasonable compensation analysis (S-Corps)
  • Quarterly estimated tax calculations
  • Year-end tax planning
  • Entity structure advisory
  • Client-submission package for ordinary, non-examination IRS or state correspondence only after separate written acceptance; agency contact only under a client-authorized power of attorney
  • General nexus education; other-state sales-tax operational compliance is not provided
  • Static compliance calendar for client tracking; no deadline monitoring or reminders

How It Works

The written engagement and intake instructions describe the expected steps from first contact through the accepted work; timing and steps may vary with the agreed scope and client-supplied information.

  1. 1

    Written-Scope Business Review

    After a written scope is accepted, I review the tax and financial records the client supplies.

  2. 2

    Tax Planning & Strategy

    I document owner-compensation, deduction-classification, and entity-tax alternatives covered by the written scope; no outcome is promised.

  3. 3

    Preparation & Authorized Filing

    Under an accepted written scope, I prepare the identified business returns under the applicable federal and New Jersey requirements and file them only after client authorization when filing is expressly assigned in that scope.

  4. 4

    Written-Scope Advisory

    Review of client-supplied information at the points stated in the written scope; no account or deadline monitoring or proactive reminders.

Frequently Asked Questions

How do an LLC and an S-Corp election differ for tax purposes?
An LLC is a state-law form; an S-Corp is a federal tax classification or election that may be available after formation. Formation, ownership, and liability questions belong with legal counsel. For an already formed entity, an accepted written scope may compare tax-classification and S-election consequences using the complete stated facts. Monaco CPA does not recommend a legal form or promise eligibility, savings, or an outcome. This is a common and consequential distinction for small business owners.
What is the NJ BAIT election?
The NJ Business Alternative Income Tax (BAIT) is an annual election for eligible pass-through entities. Qualifying BAIT paid may be deducted in computing income on the entity's federal return, while eligible owners claim the prescribed refundable credit on their NJ returns. The combined federal and NJ result depends on both return sets, QBI, the owners' SALT-cap positions, credits, and compliance costs; no benefit is promised. The elevated individual SALT cap is temporary through 2029. For 2025/2026, the cap is $40,000/$40,400 ($20,000/$20,200 MFS), phases down above MAGI of $500,000/$505,000 ($250,000/$252,500 MFS), and cannot fall below $10,000 ($5,000 MFS); current law returns to the ordinary $10,000/$5,000 cap in 2030. An accepted written scope can cover specified election analysis and return treatment; the client transmits elections and payments unless the scope expressly assigns a submission.
What records do I need to keep?
Potential records include income support, expense receipts, bank and credit-card statements, payroll records, asset-purchase documents, and prior-year returns. An accepted scope identifies the records requested for the covered return; operational system setup is not promised.

Ready to Get Started?

Greg reviews written contact-form submissions. Any response, availability, scope, price, and timing are confirmed only in writing; submitting the form creates no engagement and promises no call, consultation, or outcome.

No commitment Document instructions after acceptance Written response only

Use of this website does not create a CPA-client relationship.

Tax advice disclaimer: This material is for general educational information only and is not legal, tax, or accounting advice for your specific facts. A CPA-client relationship is formed only through a signed engagement letter.