If your income is over $214,000 (Married) or $144,000 (Single), you cannot directly contribute to a Roth IRA which gives you tax-free retirement savings growth and is considered a very valuable retirement investment vehicle. How do you contribute then? With the Backdoor Roth! 

First you need to contribute to a Traditional IRA and elect to not deduct the contribution. After a few months, convert that Traditional IRA over to a Roth! And that's it!

To make sure the Traditional IRA conversion isn't taxable on conversion, you can't have any other Traditional IRA dollars. Good thing is, 401k's and 403b's don't count as Traditional IRA money.

A Limited Liability Company is a separate legal entity and provides the owners (called Members) with limited liability protection. If you are the only member, your tax filing requirement is easy! No extra Federal return is required, and one extra form is required for CA, the Form 568 (i.e. less of a headache and less CPA fees). BUT, if you have more than one member, you typically must file a separate Federal and CA return for a Partnership, Form 1065. If the members of the LLC happen to be married and residents of CA, you have the choice annually to file just the CA form 568, or a Partnership return. 

15

I chose this picture because it looks nice and makes me think of colder days, and as we are in the middle of a heatwave, that is a nice thought! 

 

We are diligently working to meet the upcoming deadlines at the Firm, working hard amid the heat. Thankfully we have an office job which comes with air conditioning!