Business CPA

So, you’re launching a business in the U.S. under an E-2 visa? Congrats! 🎉 You’re stepping into an exciting new chapter of entrepreneurship. But before you start celebrating, let’s talk about one of the biggest financial decisions you’ll make: how to structure your business for tax efficiency.

If you don’t set things up the right way from the start, you could end up paying way more in taxes than necessary (and trust us, the IRS isn’t going to send you a thank-you note).

At Insogna CPA, a trusted Austin, Texas CPA firm, we help international entrepreneurs like you navigate U.S. tax laws, business structures, and financial setup so you can focus on growth without worrying about compliance nightmares. Let’s break it all down in plain English so you can make the smartest move for your business.

What You Need to Know About the E-2 Visa

Before we dive into tax strategy, let’s quickly cover the E-2 visa basics:

 ✔ Investment Requirement: No set minimum, but most successful applications invest at least $100,000+.
 ✔ You Must Run the Business – This is not a passive investor visa; you need to be actively involved.
 ✔ Job Creation Matters – While you don’t have a set quota, your business should contribute to the U.S. economy and create jobs.

Sounds simple, right? Well, here’s where things can get tricky: choosing the wrong business structure could cost you thousands in extra taxes and compliance headaches.

LLC vs. C-Corp: Which One Is Right for Your E-2 Business?

Most E-2 business owners choose between two main structures: LLC (Limited Liability Company) or C-Corp (C-Corporation). Each has major tax implications, so picking the wrong one is a big deal.

Option 1: LLC – Simple, Flexible & Tax-Friendly

LLCs are hugely popular for small businesses and startups because they’re easy to set up, provide liability protection, and keep taxes relatively simple.

How LLCs Are Taxed:

• If you’re a single-member LLC, your income passes through to your personal tax return (Schedule C).
• A multi-member LLC is taxed as a partnership (Form 1065), and each member gets a K-1 for their share of profits.
• LLCs can elect to be taxed as an S-Corp or C-Corp if needed.

Why an LLC Might Be a Good Fit for You:
 ✔ No Double Taxation – Profits pass through to you, avoiding corporate taxes.
 ✔ Less Paperwork – Fewer compliance requirements than corporations.
 ✔ More Flexibility – Profits can be distributed however the members agree.

Why an LLC Might Not Be the Best Choice:

• If you’re a non-resident, an LLC’s profits may be subject to U.S. self-employment tax (15.3%).
• Investors prefer C-Corps, so if you’re planning to raise capital, an LLC could limit your options.

Best for: Solo entrepreneurs, service-based businesses, and companies that don’t plan on seeking outside investors.

Option 2: C-Corporation – The Go-To for Investors & Growth

A C-Corp is a separate legal entity, which means the corporation pays taxes on its profits, and then owners pay taxes again on dividends. Yes, that means double taxation but sometimes, it’s still the better option.

How C-Corps Are Taxed:

• C-Corps pay a flat 21% corporate tax rate.
• Shareholders pay tax on dividends (but at a lower rate if they’re qualified dividends).

Why a C-Corp Might Be a Smart Move:
 ✔ Investors Love C-Corps – If you plan to raise venture capital, this is your best bet.
 ✔ No Self-Employment Tax – Unlike LLC owners, C-Corp owners don’t have to pay self-employment taxes on profits.
 ✔ Lower Corporate Tax Rate – The 21% corporate tax rate is often lower than high personal tax rates.

Downsides of a C-Corp:

• Double Taxation – First, the corporation gets taxed, then shareholders get taxed on dividends.
• More Paperwork – Annual board meetings and corporate tax filings are required.

Best for: Businesses planning to scale quickly, attract investors, or reinvest profits into growth.

How to Set Up Your E-2 Visa Business the Right Way (Before You Land in the U.S.)

If you’re setting up an E-2 visa business, getting your finances in order before you arrive can save you a ton of hassle. Here’s what you need to do:

Step 1: Choose the Best Business Structure for Tax Savings

• Want pass-through taxation and flexibility? Go with an LLC.
• Need investor appeal and corporate tax benefits? C-Corp is the way to go.

Not sure? Our team at Insogna CPA—one of the top CPA firms in Austin, Texas—can help you make the smartest choice.

Step 2: Open a U.S. Business Bank Account

• Required for tracking expenses and proving business legitimacy to immigration officials.
• Keep personal and business finances separate (trust us, the IRS loves clean records).

Step 3: Register for an EIN & Payroll System

• Apply for an EIN (Employer Identification Number) from the IRS.
• Set up a payroll system if you plan to hire employees.

Step 4: Stay Compliant with State & Local Taxes

• Some states (like Texas) have no state income tax. Others have franchise taxes for LLCs and C-Corps.
• If your business operates in multiple states, you may need to file taxes in each one.

Pro Tip: A tax advisor in Austin (like Insogna CPA!) can help you navigate multi-state tax compliance.

Step 5: Work with a CPA Who Specializes in E-2 Visa Businesses

• The S. tax system is complex, especially for international business owners.
• A proactive Austin small business accountant (that’s us!) can help you reduce tax liability, stay compliant, and avoid costly mistakes.

Final Thoughts: Set Your Business Up for Success from Day One

Launching your E-2 visa business is exciting but setting up the right tax structure is key to protecting your profits. Whether you choose an LLC or a C-Corp, making the right decision from the start will save you time, money, and stress.

At Insogna CPA, a trusted Austin tax accountant, we help E-2 visa business owners:
 ✔ Choose the best tax structure for long-term success.
 ✔ Stay compliant with U.S. tax laws (so you don’t run into IRS trouble).
 ✔ Maximize tax savings so you can reinvest in growth.

Planning your U.S. business expansion? Let’s make sure you structure it for tax efficiency. Schedule a call with Insogna CPA today!

Expanding your business to out-of-state projects is a thrilling growth opportunity, but it comes with a hidden challenge that could cost you—multi-state tax liabilities. Operating across state lines can unknowingly create tax obligations, leading to penalties, double taxation, or even lost profits.

With unclear nexus laws and state-specific tax rules, it’s easy for business owners to fall out of compliance. This guide explains how these tax risks occur and provides actionable steps to stay compliant and protect your bottom line. Insogna CPA, one of the best CPA firms in Austin,  Texas, specializes in proactive multi-state tax strategies to keep you ahead of the curve.

The Problem: Multi-State Projects Can Trigger Tax Liabilities

Engaging in projects outside your home state often creates a nexus—a legal connection to another state that obligates your business to pay taxes. Many business owners don’t realize they’ve triggered nexus until they receive a notice or penalty from a state tax authority.

Common Triggers for State Tax Obligations:

1. Physical Presence: Having employees, contractors, inventory, or equipment in another state.
2. Economic Nexus: Surpassing a state’s revenue threshold for selling goods or services.
3. Service-Based Nexus: Performing work on-site or providing taxable services in a state.
4. Payroll Obligations: Hiring in-state employees or contractors.

These scenarios can result in state income taxes, sales taxes, or payroll taxes that reduce your profits and complicate your operations.

Why It Happens: Confusing Nexus Laws Across States

Each state has its own nexus laws, making it challenging to keep track of tax obligations.

• Physical Nexus Variations: While some states require a physical location to establish nexus, others consider occasional visits or temporary projects sufficient.
• Economic Nexus Rules: States with thresholds (e.g., $100,000 in sales) often capture businesses that don’t realize they’ve exceeded them.
• Complexity of Multi-State Filing: Filing taxes in multiple states without proper systems can lead to missed deadlines, inaccurate reporting, and penalties.

Without expert guidance from a trusted accounting firm in Austin, it’s easy to fall behind on compliance.

The Solution: How to Avoid Hidden Multi-State Tax Risks

To stay compliant and avoid unnecessary costs, follow these three steps:

1. Understand Nexus Rules in Every State You Operate

Before entering a new state for business, research its nexus laws and tax obligations.

Key Considerations:

• Does the state require income tax filings based on economic activity?
• Are services subject to sales tax in that state?
• Will hiring a contractor trigger payroll tax obligations?

Example: A Texas-based construction firm performing work in Colorado may establish nexus by working on-site, requiring state income tax filings.

Pro Tip: Partner with an experienced Austin, Texas CPA like Insogna CPA to assess each state’s requirements and avoid surprises.

2. Register for State Tax Accounts Where Necessary

Once nexus is established, promptly register with the appropriate state tax authorities to avoid penalties.

Common Registrations Include:

• Sales Tax Permits: Required for selling taxable goods or services.
• Payroll Tax Accounts: For businesses hiring employees or contractors in the state.
• Income Tax Filings: For reporting income generated from out-of-state activities.

Pro Tip: If you’ve unknowingly triggered nexus in the past, a trusted CPA firm in Round Rock, TX can help you register retroactively and negotiate reduced penalties.

3. Maintain Accurate Multi-State Records

Accurate record-keeping is essential for multi-state compliance.

What to Track:

• Revenue earned in each state.
• Time spent by employees on-site in other states.
• Inventory or equipment stored in different locations.

Why It Matters: Proper documentation allows your CPA to prepare accurate returns and defend your business in case of an audit.

4. Proactively Plan Your Multi-State Tax Strategy

A forward-thinking tax strategy ensures you remain compliant while reducing liabilities.

How a CPA Helps:

• Tax Risk Assessments: Identify nexus triggers before expanding operations.
• Streamlined Filings: Prepare state tax returns accurately and on time.
• Tax Savings Opportunities: Discover deductions and credits available in specific states.

Action Step: Work with a small business CPA in Austin to create a proactive multi-state compliance plan that aligns with your growth goals.

Real Case Study: How Proactive Planning Can Save A Texas-Based Business $25,000

The Challenge:
 An Austin-based logistics company expanded into New Mexico and Oklahoma, triggering sales tax and income tax obligations without realizing it. After two years, they faced penalties exceeding $25,000.

The Solution:
 The company decided to partner with Insogna CPA, one of the leading accounting firms in Austin Texas, to assess their multi-state obligations.

Results:

• They can file back their taxes and register retroactively, reducing penalties by 60%.
• Their tax filings will be streamline across multiple states for future projects.
• They can save $25,000 in penalties and fees through accurate filings and proactive planning.

Why Insogna CPA?

At Insogna CPA, we’re experts in multi-state tax compliance. As a trusted CPA firm in Austin, TX, we help businesses navigate complex nexus laws and protect profits.

Our services include:

• Multi-State Nexus Analysis: Identify where your business has tax obligations.
• Compliance Support: Manage registrations, filings, and audits seamlessly.
• Proactive Planning: Develop tax strategies that minimize liabilities and support growth.

Whether you’re working on out-of-state projects or expanding your online sales, our team keeps you compliant and profitable.

Take the Stress Out of Multi-State Taxes

Out-of-state projects shouldn’t create unnecessary tax risks for your business. With proactive strategies and expert guidance from Insogna CPA, you can confidently expand into new markets while staying compliant.

Contact Insogna CPA today to schedule a consultation and protect your business from hidden tax liabilities.

You’ve built your eCommerce business, put in the late nights, and watched your sales grow. But when tax season rolls around, does it feel like all your hard work is just funding the IRS? If you’re not maximizing your deductions, you could be leaving thousands of dollars on the table.

At Insogna CPA, a top Austin, Texas CPA firm, we help eCommerce sellers keep more of their money while staying tax-compliant. Let’s break down the most overlooked tax deductions, how to track them properly, and why a proactive tax strategy is the key to paying less.

Know What You Can Deduct And Take Advantage of It

Not all expenses are created equal. Some put money back in your pocket, while others just drain your profits. The key? Knowing what’s deductible and making sure you claim it.

1. Home Office Deduction

If you’re running your store from home, you could be writing off part of your rent, utilities, and internet as long as you have a dedicated workspace.

Pro Tip: The IRS won’t let you deduct your couch, but that spare bedroom-turned-warehouse? Now we’re talking.

2. Shipping & Delivery Costs

Every box you send out is an expense. That means postage, packaging, shipping insurance, and tracking costs are all deductible.

Make sure you’re tracking:
 ✔ USPS, FedEx, UPS costs.
 ✔ Packing materials (boxes, tape, labels).
 ✔ Fees for expedited shipping or return handling.

2. Merchant & Payment Processing Fees

Shopify, Etsy, Amazon, Stripe, PayPal—they all take their cut. Luckily, those transaction fees are tax-deductible.

✔ Every little percentage adds up. Deduct them to shrink your tax bill.

3. Marketing & Advertising Costs

The money you spend to get your brand in front of customers is deductible.

✔ Facebook, Instagram, Google Ads.
✔ Branding, logo design, photography, and influencer collaborations.
✔ Email marketing software like Klaviyo or Mailchimp.

Pro Tip: If you paid an influencer to promote your product, that’s marketing—write it off!

4. Inventory Costs (But Only When You Sell It!)

Inventory isn’t deducted when you buy it—it’s deducted when you sell it as part of Cost of Goods Sold (COGS).

✔ Keep good records of what you buy, what you sell, and what’s left in stock.
✔ If you store inventory at a fulfillment center or warehouse, those fees are deductible too.

5. Business Travel & Education

If you travel for trade shows, supplier meetings, or industry conferences, your flights, hotels, and business meals are deductible.

✔ Flights, hotel stays, and rental cars.
✔ 50% of business-related meals.
✔ Online courses, coaching programs, or business books.

How Insogna CPA Helps: We’ll organize your expenses so you’re claiming every possible deduction without the IRS side-eyeing you.

Bookkeeping: The Secret to Bigger Deductions

You know what’s worse than overpaying on taxes? Overpaying because your books are a mess.

If your receipts are scattered, your inventory isn’t tracked, or your transactions are mixed with personal expenses, you could be missing out on deductions you rightfully deserve.

How Clean Books = More Tax Savings:

✔ You track every deductible expense in real-time.
✔ You avoid IRS audits by keeping your records organized.
✔ You make tax season painless—no scrambling, no stress.

Bookkeeping Tips for eCommerce Sellers:

✔ Use QuickBooks or Xero to track income & expenses automatically.
✔ Keep digital copies of receipts (apps like Expensify make it easy).
✔ Hire an Austin small business accountant (like us!) to clean up your books and find hidden savings.

Why Work With Us? At Insogna CPA, we offer monthly bookkeeping services so you can focus on growing your business, not sorting receipts.

Plan Ahead to Legally Lower Your Taxes

Most business owners think about taxes in April. Smart business owners start planning in January.

A proactive tax strategy can save you thousands every year. Instead of just preparing your tax return, we help you reduce your taxable income legally.

Here’s How Tax Planning Saves You Money:

✔ Quarterly Estimated Taxes – Avoid IRS penalties by paying the right amount throughout the year.
✔ Income Distribution – Structure your salary and business income to minimize self-employment tax.
✔ Retirement Contributions – Use a SEP IRA or Solo 401(k) to reduce your taxable income while saving for the future.

How Insogna CPA Helps: We’re not just tax preparers, we’re tax strategists. We help eCommerce sellers create a plan to pay less and keep more.

The Real Cost of Missing Deductions? Overpaying the IRS

Let’s do some math. If you miss $10,000 in deductions and your tax rate is 25%, that’s $2,500 extra you just handed to the IRS.

Do that for a few years, and you’ve lost tens of thousands of dollars that could have gone toward:

• Scaling your business.
• Launching new products.
• Taking that vacation you’ve been dreaming about.

Why give the IRS more than you need to?

Let’s Make Sure You’re Keeping More of Your Profits

At Insogna CPA, we specialize in helping eCommerce business owners like you maximize deductions, reduce taxable income, and stay compliant. Whether you’re a Shopify seller, Amazon FBA entrepreneur, Etsy shop owner, or independent eCommerce brand, we’ve got your back.

📞 Tired of overpaying on taxes? Contact Insogna CPA today and let’s start saving you money!

Hey there, eCommerce rockstar! Running your business is a hustle, and we see you putting in the work. But let’s talk about taxes—are you leaving money on the table? If you’re not taking advantage of every possible deduction, you might be handing over too much to the IRS.

At Insogna CPA, we work with eCommerce pros like you to make sure you’re keeping as much of your hard-earned cash as possible. We know taxes aren’t your favorite topic, but that’s what we’re here for. Let’s break down seven deductions you absolutely need to claim this tax season.

1. Home Office Expenses

Working from home? Guess what—you could be turning your workspace into a tax deduction.

Here’s the Deal:

• If you have a dedicated space for business (no, your kitchen table doesn’t count), you can deduct a portion of your rent, utilities, and internet.
• The more detailed your records, the bigger the payoff.

Our Tip: Snap a pic of your workspace and keep those utility bills handy. We’ll handle the math and make sure the IRS stays happy.

2. Website and Software Costs

Your website is the beating heart of your eCommerce empire, and all those tools and subscriptions you use? They’re deductible, too.

What to Include:

• Website hosting and domain fees.
• ECommerce platforms like Shopify or Etsy.
• Accounting software (we see you, QuickBooks users).

Why It Matters: These tools keep your business running, and they should keep your taxes running lean. We’ll make sure they do.

3. Advertising and Marketing Expenses

Social media ads? Email campaigns? Product photos? If you’re spending money to get your name out there, it’s deductible.

Eligible Expenses:

• Paid ads on platforms like TikTok, Instagram, and Google.
• Email tools like Mailchimp or Klaviyo.
• Design and photography services to make your brand pop.

How We Help: We’ll track every ad dollar so you’re not just growing your business—you’re shrinking your tax bill.

4. Shipping and Delivery Costs

Let’s be real—shipping can eat into your profits. Luckily, it’s deductible.

What You Can Write Off:

• Postage and shipping fees for orders.
• Packaging materials (boxes, tape, and even those eco-friendly peanuts).
• Delivery tracking and insurance.

Pro Tip: We’ll make sure every dollar you spend getting products to customers ends up as a tax deduction.

5. Professional Services (Like Hiring a CPA!)

When you bring in experts to help your business run smoothly, those costs are deductible. Yes, even paying us counts.

Here’s What Qualifies:

• CPA fees for tax planning (we’ve got your back).
• Legal services for contracts or trademarks.
• Freelancers helping with SEO, design, or marketing.

Why It’s Smart: Investing in pros like Insogna CPA, a trusted Austin tax accountant, saves you time, money, and stress.

6. Inventory Costs

If you’ve got inventory, you’ve got deductions—but timing is everything.

What to Know:

• Inventory gets deducted as Cost of Goods Sold (COGS) when you sell it, not when you buy it.
• Storage costs for inventory, like warehouses or fulfillment services, are also deductible.

Our Expertise: We’ll help you stay on top of inventory tracking so you deduct it at the right time and keep your cash flow smooth.

7. Business Travel

Business trips aren’t just great for networking—they’re great for your taxes.

Deductible Travel Expenses Include:

• Flights or mileage to trade shows, supplier meetings, or events.
• Hotels and lodging.
• Business meals (but only 50% of the cost).

How We Simplify It: We’ll make sure every travel receipt translates into tax savings—so keep those receipts handy!

Here’s the Bottom Line

We get it—running an eCommerce business is full of moving parts, and taxes might feel like the least exciting part of the job. But missing out on deductions? That’s money you could be reinvesting into your business (or treating yourself for all that hard work).

At Insogna CPA, a leading CPA in Austin, Texas, we specialize in helping eCommerce sellers like you maximize deductions and stay compliant. You’ve got big goals—we’ll help you reach them without worrying about tax season.

Let’s Make Tax Season Work for You

Not sure if you’re claiming every deduction? Let us take a look. At Insogna CPA, one of the top Austin CPA firms, we’ll review your finances, uncover hidden savings, and take the hassle out of taxes.

📞 Ready to save more and stress less? Contact Insogna CPA today and let’s keep more of your hard-earned profits where they belong—in your pocket.