Reading Your Profit & Loss Statement as a Single Owner LLC
Is your organization a single-owner LLC? If so, here is an important point to remember when you, as the owner, are looking at your Profit & Loss statements. Since you are not, by law, allowed to take a payroll check, you are paid by draw or distribution. Therefore, your P&L shows no “cost” for you – as the draws/distributions only show on your Balance Sheet. So, if you show an accrual-basis profit of $100,000 and you think you would be worth $100,000 on the market if you worked for someone, you really have a profit of $0. Just something to think about…
Tax Planning Time
We are currently in the midst of tax planning season. As an LLC or Subchapter S corp, all cash activities must take place before December 31st. Please consult with your DMS Manager and your CPA to determine the best strategy for you to achieve the optimum tax outcome. This planning can potentially generate real tax savings.
Financial Planning for your Pets?
Animals have played important roles in human lives for centuries. They provide companionship, comic relief, work assistance, transportation, reassurance, protection and food. My dog is my best stress-reliever!
Today, emotional-support and service animals may be found in workplaces, cafes, theatres, airplanes and many other places where our parents or grandparents would have been surprised to find them. Landlords charge pet rent, and some service animals qualify as a medical expense under IRS rules.
It is also becoming more and more common for pet owners to include pets in their financial planning goals. While you cannot leave your pet property, you can make arrangements to have your pet cared for after you pass away. In addition, pets can become beneficiaries of trusts.
Whether you think the idea of providing financial support for pets is silly or you wholeheartedly embrace it, the role of animals in the lives of many Americans is changing.
Lastly, I recently read The Perfect Plan by Don Barden and highly recommend it – a great suggestion if you’re being asked for holiday gift ideas!
Going back to my cage….bark at you soon.
-Mike