Cynthia

The child and dependent care credit is a tax credit that may help you pay for the care of eligible children and other dependents (qualifying persons). The credit is calculated based on your income and a percentage of expenses that you incur for the care of qualifying persons to enable you to go to work, look for work, or attend school. For 2021, the American Rescue Plan Act of 2021, enacted March 11, 2021, made the credit substantially more generous (up to $4,000 for one qualifying person and $8,000 for two or more qualifying persons) and potentially refundable, so you might not have to owe taxes to claim the credit (so long as you meet the other requirements). This means that more taxpayers will be eligible for the credit for the first time and that, for many taxpayers, the amount of the credit will be larger than in prior years. However, taxpayers with an adjusted gross income over $438,000 are not eligible for this credit even though they may have previously been able to claim this credit.

Small Business Set Up

Small business success plays a vital role in this country’s mythology. While there are indeed factors that make it a good time to be an entrepreneur in America, there are also factors that make it a challenging time to be running your own business. You as a small business owner will need to:

• Survive early pitfalls

• Deal with taxes, insurance and finding money

• Learn what federal regulations apply to you

• Know what your state requires

As reliable partner BATS can help:

• Prepare an initial business plan to clarify your marketing, management, and financial plans.

• Determine your start-up capital needs.

• Identify sources of start-up capital and backup sources if needed.

• Evaluate and quantify your borrowing power so you know how much money you can get your hands on if needed.

• Select a business structure that best fits your needs by evaluating tax advantages, legal exposure, ease of operation and

portability should you need to relocate.

• Select the right accounting software by evaluating your budget, needs and hardware.

• Prepare a Cash Flow Budget so you know exactly how much money you need to keep the business alive each month for the first

few years.

• Establish billing and collection procedures to maximize your cash flow.

• Establish procedures to monitor and control costs.

• Setup a home office so you can maximize your tax deductions.

• Prepare and file all required state and local licenses and permits.

• Prepare and file your application for your Federal Employer Identification Number.

• Provide payroll and payroll tax filing when you bring on your first employee.

• Comply with employment laws so you don’t get hit with fines and unhappy employees.

• Identify your business insurance needs.

• Develop a solid Partnership Agreement. This is an extremely important document for all new partnerships and will help prevent a

tremendous amount of financial and emotional problems down the road

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