No, not all LLCs are 1099 reportable; you typically do not file a 1099 for LLCs taxed as S-Corps or C-Corps, unless specific exceptions apply. Tax season brings a heavy workload for small business owners. You likely have a stack of invoices, receipts, and W-9 forms sitting on your desk. You know you need to […]

No, usually the death benefit is tax-free, but interest earnings, cash value gains, and estate transfers can create taxable income. Most people purchase life insurance to protect their loved ones financially. You pay premiums now so that your beneficiaries receive a lump sum later. Generally, the Internal Revenue Service (IRS) treats this lump sum favorably.

No, not all liabilities are debt; while debt specifically refers to borrowed money usually requiring interest, liabilities include all financial obligations, such as accounts payable and wages. Business finance often feels like a maze of interchangeable terms. You might hear “debt” and “liability” used as synonyms in casual conversation. In the strict world of accounting,

Most legal fees paid for business purposes totaling $600 or more are reportable on Form 1099-NEC or 1099-MISC, even if the law firm is incorporated. Tax season brings specific questions for business owners, and handling payments to attorneys often tops the list. You might assume that because a law firm is a corporation, you do

Yes, most law firms are reportable because the IRS considers attorney fees a specific exception to the standard corporate exemption rule for 1099s. Tax season triggers stress for business owners, especially when reviewing accounts payable. You see a large sum paid to a law firm for contract review or litigation defense. You know the general

Yes, federal student loans borrowed to attend ITT Technical Institute between January 2005 and September 2016 are automatically discharged, though private loans require different actions. The collapse of ITT Technical Institute left thousands of students with debt and useless credits. In August 2022, the Department of Education announced a massive group discharge. This action wiped

No, an IRA is simply a tax-advantaged account that holds assets, meaning you can fund it with bonds, CDs, cash, or real estate instead of stocks. Many savers worry that opening an Individual Retirement Account (IRA) forces them to gamble their life savings on Wall Street. This is a common misunderstanding. You have full control

No, not all IRAs are FDIC insured; coverage applies only to deposit products like CDs held at FDIC-member banks, while investments like stocks carry market risks without government backing. You work hard to build your retirement savings. Seeing that balance grow brings a sense of security. But when banks fail or markets shake, you might

No, not every asset class is losing value. While broad indexes may dip, specific sectors like energy, commodities, and high-yield cash often rise. Market volatility often feels like a universal storm. When you check your portfolio and see red numbers across your tech stocks or index funds, panic sets in easily. You might assume the

No, not all investment bankers are rich; junior staff face high costs that offset pay, while only senior directors accumulate multimillion-dollar wealth. Movies and media paint a picture of excess. You see Ferraris, penthouses, and tailored suits. But the reality for the vast majority of people in finance looks different. Most investment bankers earn a