Firstly, nice job on offering discount incentives to encourage more customers to use your service. Often times, companies lose sight of the long-term benefits of offering discounted goods or services to new customers. As for your bookkeeping question, it appears as though you are referring to a "sales discount," which is not recorded as an expense. .

Withholding taxes may seem like a nuisance but if you have "employees" then you are responsible by law to withhold several federal, state, and possibly local taxes. Please also keep in mind that prior to commencing operations and hiring "employees," you technically need an employer identification number which is commonly referred to as a "EIN." You can visit the IRS website which details the necessary steps to obtain a EIN. You will also need to rely on the employee's W-4 Form to accurately calculate withholding taxes. .

Many business owners that are in the process of purchasing or leasing a vehicle, get the idea of executing the transaction through the business. The thought that they have is, "Why not, I can probably claim a tax deduction." Although it may seem logical, being able to legally claim a tax deduction depends on exactly how the vehicle is used. .

This is an interesting situation since a teacher is not a traditional vendor selling a product or service but teaching a class. We'll analyze in further detail below but we would strongly advise the teacher to understand the reason for the request by their customer. .