Cash is king, and every business needs to keep close tabs on their cash flow in order to maintain financial health. As the year progresses, it's a good time to evaluate your cash flow planning to ensure your business is in a good financial position. Many business owners focus only on their profit & loss statement (income statement), but the problem is that profit isn’t cash. Timing of invoices, bill payments, loan principal, and sales tax remittances in Maryland drives the ba

If you recently opened your mail to find IRS CP162A for your business in Maryland, you are likely wondering: what does it mean and what should I do? For Maryland pass-throughs—S corporations and partnerships—this notice usually means the return was late or the IRS says it should have been e-filed but wasn’t. Both can lead to significant penalties and ignoring it can add interest fast. Here are the key steps business owners should take now: 1) Confirm why you got it. Read the

We've heard the question many times from business owners: “I’m busy running my business. Do I really need a tax advisor for proactive planning, what will they actually do, and what’s a fair fee?”. Tax planning impacts important choices like S corporation timing, the Maryland pass-through entity (PTE) tax election, sales and use tax, and estimated taxes (to name a few). Missing any of these can cost you, especially around mid-year when June and September estimated payments are

If you run a dental practice, you’ve probably asked yourself: “I need new equipment this year—should I buy now or wait?” This decision matters because it affects both your taxes and your cash flow - and ultimately, how comfortable your finances feel throughout the year. Here are a few practical ways to think about it: Time purchases based on your income and readiness to use the equipment. In general, you only get the tax benefit (depreciation deductions) when the equipment is

IRS and Maryland rules (and deadlines) move fast and missed filings cost time and money. Many business owners try to assume the roles of accountant and tax advisor but soon realize that these functions need to instead be delegated to a qualified professional. What to outsource first 1) Business tax filings and elections Maryland small business tax preparation for S corporations, partnerships, and Schedule C filers is complex. Choosing or changing entity status (like an S corp

Making sure your medical practice has proper books in place is critical to success. This matters because clean books drive your S corporation or partnership tax filings, quarterly estimated taxes, personal property returns, and any sales and use tax (if you sell products). Understanding whether your Maryland medical practice's bookkeeping should be handled in-house or by a professional accounting firm is of equal importance. Key steps to set your bookkeeping up right Build a

“I keep client retainers; how do I handle my IOLTA in QuickBooks/Xero so I don’t mess up my taxes or ethics rules?” That’s a common question we hear from local firms in Rockville, Bethesda, Silver Spring, and surrounding areas. In Maryland, a properly set up and reconciled IOLTA (attorney trust) account protects your license, your cash flow, and your tax filings. Key reasons your IOLTA needs proper setup and monthly reconciliation Stay compliant and avoid commingling: Marylan

We get the question all the time: “I’m starting or growing my law firm. Should I stay an LLC, become a partnership, or elect S‑corporation status for tax purposes?” Many attorneys in Maryland areas wrestle with this exact question. Your choice affects how you pay yourself, how much tax you pay, and how complicated your filings are. For Maryland firms, it’s more than a legal decision; rather, it’s a long‑term tax strategy. 1. Start With the Legal vs. Tax Distinction In Marylan

Business owners wear many hats, and that means that things can fall through the cracks - i.e tax filings. However, business unfiled tax returns are not something to leave unattended. Here’s a calm, practical path for Maryland businesses, such as LLCs taxed as S corporations, partnerships, and Schedule C service businesses, to get back into compliance. 1) Start with records and the current year Pull bank statements, 1099s, payroll reports, and sales and use tax filings. It's i

When June comes around, many LLC members find themselves in a common situation: wondering how much to pay in quarterly taxes based on their partnership (1065) or s-corporation (1120S) income. If the business income is irregular (most businesses are), the question also becomes more complex, and is usually something along the lines of: “I run a multi‑member LLC. Profits swing month to month. What should we actually pay by June 15?” It matters because underpaying income taxes ca

“I run a multi-location practice in Maryland. Insurance pays 30–90 days late, but my payroll is every two weeks. How do I avoid tax penalties and cash crunches?” This matters because missed payroll and late payroll tax deposits trigger costly penalties in Maryland and at the IRS level, with owners still owing quarterly estimated taxes. Key steps for Maryland medical practices Protect payroll and tax deposits first Open a separate payroll/tax reserve account and fund it every

If your nonprofit organization missed the May 15, 2026 filing deadline for Form 990, you are not alone. Many tax exempt organizations struggle to gather financial records complete the return and file on time, especially if they rely on volunteers or have limited administrative staff. The good news is that while the IRS does impose penalties for late filing you can take action now to reduce the financial impact and protect your nonprofit's tax exempt status. What Happens When

Many partners quietly wonder what the right way to pay themselves is (i.e. draws, salary, or distributions - and what does the IRS expect?). For Maryland law firms the answer depends heavily on your entity type and tax classification. Getting this wrong can lead to unexpected tax bills, penalties, or messy partner disputes. 1. Start with Your Firm’s Entity and Tax Status Before you decide how to pay partners, you must know how your firm is taxed: LLC taxed as a partnership (m

If you run a nonprofit in Maryland, May often brings a big question: “We’re tax‑exempt, so do we really need to think about taxes right now?” For many organizations, the answer is yes, especially around federal Form 990 deadlines and Maryland compliance filings that cluster in the spring. Below are a few key issues nonprofit boards and executive directors should keep on their radar each May: 1. Form 990 and “we don’t pay taxes” myths Most tax‑exempt nonprofits must file an an

If you run a law firm in Germantown, Rockville, or anywhere in Montgomery County, you have probably wondered: “Are we handling our firm’s taxes the right way?” This matters more than most attorneys realize. Law firms often deal with partnership income, owner draws, and complex compensation structures, all of which have specific Maryland and federal tax implications. Key Tax Areas Law Firms Must Get Right Entity structure and partner taxation Many Maryland law firms operate as

“I run a small business in Maryland. Do I really have to make quarterly estimated tax payments, or can I just deal with it at tax time?” Many Maryland business owners ask this, especially LLC owners and contractors who don’t get taxes withheld from a paycheck. The short answer is that if you expect to owe tax when you file, the IRS and the State of Maryland generally expect you to make tax payments during the year, usually through quarterly estimated tax payments (and not jus

If you run a Maryland multi‑member LLC or partnership, your annual federal partnership return—Form 1065—drives everything from partner Schedule K‑1s to Maryland pass‑through entity (PTE) filings. Here’s a concise overview of what to file, when it’s due, and how to keep Maryland‑specific requirements on track so you avoid penalties and protect cash flow. What is Form 1065—and who must file? - Form 1065 reports your partnership’s income, deductions, credits, and other items. It