October 2019 Q and A

Question:

I own a small business, but I’m required to give my personal social security number when I apply for business credit. Do I need to know my business credit score, too?

Answer:

It can’t hurt. Many small business owners receive credit based primarily on their personal credit strength, but building a business credit rating can help some firms grow. Dun & Bradstreet is a primary source of business credit reports, which other companies often seek to determine the creditworthiness of future business partners and their ability to pay their bills. Creditors can also decide lending rates for your business with this report, while insurance companies may use it to figure premiums.

Question:

Last year I paid the Alternative Minimum Tax (AMT) and I wonder how I might avoid paying it again for 2019. I heard there are a few things I can do.

Answer:

There are. For starters, make sure you itemize on your tax return. Then, increase qualified retirement contributions up to the maximum your plan or account allows. Consider increasing contributions to a Health Savings Account (HSA) and qualified charities, too. Talk to your tax professional to learn other ways to save and, for that matter, whether you even have to pay the AMT in light of generous new limits.