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Tax Preparation and Planning

Tue, 12 May 2026 19:40:21 GMT

The Difference Between Tax Preparation and Planning

Tax preparation and tax planning get mixed up all the time, and honestly, it's an easy mistake to make. But they do very different things, and once you understand the difference, you'll start making smarter financial decisions.

Tax preparation is exactly what it sounds like: pulling together your financial records, filling out the forms, and getting your return filed with the IRS. It happens once a year, after everything is said and done, and the whole point is to report what happened accurately and stay on the right side of the law.

Tax planning is a different beast. It's something you do all year long—looking at your situation, thinking ahead, and making deliberate choices that keep more money in your pocket. Things like timing when you receive income, maxing out deductions, rethinking your business structure, or planning a big purchase at the right moment.

The real difference boils down to this:

Tax preparation looks backward and reports what already happened
Tax planning looks forward and shapes what's going to happen

There's also a control factor here. By the time you're preparing your taxes, the decisions are already made. Tax planning is where you actually get to influence the outcome.

Put simply: preparation makes sure you file right. Planning helps you pay less—legally.

What is Tax Preparation?

Tax preparation is the process of organizing your financial records, completing your return, and filing it.

It happens once a year—usually somewhere between January and April—and covers the basics: reporting your income, claiming your deductions and credits, and submitting everything to the IRS correctly.

For most people, this looks like a meeting or two with a CPA, handing over some documents, and signing off on the final return.

The goal is simple: stay compliant and file accurately.

Tax preparation deals with what already happened. It's inherently backward-looking.

Advantages of Partnering with a Firm that Does Tax Preparation

A solid tax preparation firm is genuinely worth having. Here's what you actually get:

Accuracy and compliance—Fewer mistakes means fewer headaches, penalties, and audit flags.

Time back in your day—Tax forms are complicated. Having someone handle them means you don't have to.

Basic tax savings—A good preparer knows the standard deductions and credits and will make sure you're not leaving easy money on the table.

Peace of mind—You know it's done right and filed on time.

That said, this is largely where the value stops.

How Tax Preparation Differs from Tax Planning

This is where things get interesting.

Tax preparation happens once a year. Tax planning happens all year. Tax preparation looks at the past. Tax planning shapes the future. Tax preparation keeps you compliant. Tax planning keeps more money in your hands. Tax preparation works with what you've already reported. Tax planning involves decisions you haven't made yet.

Here's the honest truth: a tax preparer works with what already happened. A tax planner helps you change what happens.

That difference can be worth tens of thousands of dollars.

What is Tax Planning?

Tax planning is a proactive, year-round approach to legally reducing what you owe.

Instead of scrambling every April to see where you stand, it's about structuring your income and expenses thoughtfully, timing financial decisions strategically, and using the tax code in your favor before the year closes out.

The results can be significant. On average, clients at Uplevel Services save $25,000 in their first year. In one case, a client saved over $200,000 just by restructuring how their finances were set up.

That's what planning actually looks like in practice.

What Tax Planning Entails

Tax planning isn't a single trick. It's a whole system working together.

It covers things like timing income and expenses to lower your taxable income, finding deductions beyond the obvious ones, boosting retirement contributions to defer taxes, structuring your business in the most tax-efficient way, and timing capital expenditures to get the most benefit.

It also means staying in regular contact, monthly or quarterly check-ins, ongoing adjustments as your business evolves, and keeping a clear picture of how your financial decisions connect.

And timing matters more than most people realize. By April, most of the meaningful moves are off the table.

Do I Need Tax Planning?

If you're a business owner, the short answer is yes.

If you're generating consistent income, trying to grow, and want to actually keep what you earn, tax planning isn't optional, it's essential.

One of the most common mistakes I see is business owners putting complete trust in their CPA and assuming that if there were a better strategy, someone would've mentioned it by now.

Here's the thing: most CPAs are stretched thin. They don't have the bandwidth to proactively implement strategies throughout the year. So the window closes, year after year, and the opportunity is gone.

Why It's Vital to Integrate Both Tax Filing and Tax Planning Strategies

This isn't an either or conversation.

You need both.

Preparation keeps you compliant. Planning keeps you optimized. Together, they lower your overall tax burden, improve your cash flow, and make sure your financial decisions are actually working toward your long-term goals.

Without planning, you're always reacting. Without preparation, you're risking compliance issues.

Together, you're in control.

Need Help with Tax Preparation and Planning for Your Startup?

At Uplevel Business Services, we do more than file taxes.

We work alongside business owners throughout the year, identifying missed opportunities, putting real tax-saving strategies in place, and making sure you're not handing over more than you have to.

If you're only working with a tax preparer right now, there's a real chance you're overpaying—sometimes by more than double.

And no, this isn't about chasing unrealistic promises. You've probably seen those claims about paying zero in taxes. For most people, that's just not how it works.

What we focus on is different: legally minimizing your tax burden so you keep more of what you've earned.

Final Thoughts

If your accountant only calls you during tax season, you don't have a tax strategy. You have a filing service.

And that's probably costing you more than you realize.

Book Your Free Consultation

If you want to know how much you could actually be saving, book a free consultation. We'll walk through where you might be overpaying, which strategies make sense for your situation, and what steps you can take right now.

No pressure. Just an honest conversation.

Business Tax Planning Strategies for 2026

Tue, 10 Feb 2026 08:56:00 GMT

For most business owners, business tax planning feels like something you deal with once a year, usually under pressure, and right before a deadline. That mindset is expensive.

After more than 10 years as a CFO consultant and tax strategist, and previously serving as an IRS agent, I’ve seen the same pattern over and over: businesses don’t overpay taxes because the rules are unclear, they overpay because they’re reacting instead of

planning.

Real tax planning isn’t about loopholes, it’s about aligning how your business operates, pays people, invests, and grows with the tax code working for you instead of against you.

Strike the Right Balance Between Salary and Distributions (S Corporations)

S-Corporations can be powerful but only when handled correctly. One of the most common mistakes I see is owners either underpaying themselves to avoid payroll tax or overpaying themselves without realizing the tax cost. Both approaches create problems. The IRS requires S-corp owners who actively work in the business to pay themselves a reasonable salary. That salary is subject to payroll taxes, but distributions are not. The goal is balance, not avoidance.

There is no universal “60/40 rule” that works for every business. In practice, reasonable compensation depends on:

The owner’s role and responsibilities
Industry benchmarks
Time spent in the business
Business profitability and cash flow

As a former IRS agent, I can tell you this clearly: documentation matters more than ratios. When compensation decisions are supported by facts, they are far more defensible.

Handled properly, S-corp planning alone can save owners tens of thousands per year in unnecessary payroll taxes. For many of my clients, optimizing this one area is part of how we average roughly $25,000 in annual tax savings—without aggressive positions.

Avoid Overpaying Yourself (C Corporations)

C corporations have the opposite issue. When owners pay themselves excessive salaries, the IRS may reclassify that compensation as disguised dividends, which eliminates the deduction and increases tax exposure. That’s a lose-lose outcome. C-corps make sense at certain revenue levels or when businesses are reinvesting heavily, raising capital, or planning a future exit. But compensation must still be intentional.

The right approach is to:

Set salaries aligned with market compensation
Use bonuses strategically
Balance wages and dividends to manage double taxation

When structured properly, compensation planning helps reduce corporate taxable income while staying compliant—especially important for growing businesses in California.

Boost Tax Benefits Through Charitable G iving

Charitable giving can be a meaningful tax strategy, but only when it’s planned. Too many businesses treat donations as an afterthought.

Strategic giving can:

Reduce taxable income
Align with business values
Support long-term estate and wealth planning

For some owners, tools like donor-advised funds allow you to take the deduction now while deciding later where to direct the funds. For others, business-level contributions make more sense. The key rule: charity should never be driven solely by tax savings. Poor documentation or improper valuation is a fast way to lose a deduction and invite scrutiny.

Bonus Depreciation Extended

With bonus depreciation extended, businesses can deduct a significant portion—or in some cases all—of qualifying asset purchases upfront.

This includes:

Equipment
Machinery
Vehicles
Certain technology and infrastructure

That said, buying assets just for a write-off is usually a mistake. Depreciation should support business needs, not drive them. Timing matters. Assets must be placed in service, not just purchased, and state rules—especially in California—often don’t match federal treatment. Without modeling the impact, businesses routinely overestimate savings. When depreciation is planned correctly, it improves cash flow without creating future tax surprises.

Access to Tax Incentives and Credits

Many businesses qualify for credits they never claim simply because no one looks.

Depending on the business, this may include:

Research and development credits
Payroll-based incentives
Energy and efficiency credits
State-level programs

One of my strongest beliefs is this: most businesses qualify for something—but very few systematically review eligibility. Credits reduce tax liability dollar-for dollar, making them one of the most powerful tools available when used correctly and documented properly.

Tax Compliance Requirements

Tax savings only matter if they survive scrutiny.

As a former IRS agent, I can tell you most audits don’t start because of one big mistake—they start because of patterns:

Inconsistent reporting
Sloppy bookkeeping
Unsupported deductions
Payroll errors

Compliance isn’t just filing a return. It’s maintaining systems that support every number on that return.

Detailed Record-Keeping

Good bookkeeping isn’t optional, it’s the foundation of tax planning.

The most common issue I see is mixed personal and business expenses. That alone can erase legitimate deductions.

Home Office Deductions

The home office deduction is valid but only when used correctly. Exclusive use, proper measurement, and consistency are critical. This is an area where precision matters.

Employee Expenses

Wages, benefits, training, reimbursements, and travel can all be deductible—but only when structured correctly. Accountable plans, in particular, are underused and extremely effective.

Health Insurance Premiums

For owners and employees, health insurance can often be deducted in tax-efficient ways depending on entity structure. Handling this incorrectly is a missed opportunity.

Retirement Contributions

Retirement plans are one of the most powerful tax deferral tools available. The “right” plan depends on employee count, cash flow, and owner goals. There is no one-size-fits- all answer.

Business Research and Development Credits

R&D isn’t just labs and patents. Process improvements, software development, and operational innovation often qualify but documentation is non negotiable.

Travel and Meals Expenses

Travel must have a business purpose, and meals must be documented properly. This is a high-abuse area and a common audit trigger.

Entity Structure Optimization

This is where many business owners go wrong. Most business owners overcomplicate entity structure and underinvest in bookkeeping. I say this constantly because it’s true. Changing entities without fixing fundamentals rarely creates savings.

Entity optimization should be driven by:

Profit levels
Payroll tax exposure
Growth plans
Exit strategy

Sometimes the best move is not changing structure—but optimizing how the current one operates.

The Role of Outside & Fractional Financial Expertise

As businesses grow, DIY finance stops working. Once complexity increases more employees, multiple states, debt, rapid growth owners need decision-level financial insight, not just compliance.

This is where outside expertise becomes critical.

Fractional CFO Consulting Services

A fractional CFO isn’t a tax preparer and not just a bookkeeper.

As a fractional CFO, my role is to:

Forecast cash flow and tax exposure
Align compensation, structure, and investment decisions
Identify savings before the year ends, not after
Reduce risk while improving profitability

For many clients, this is how we uncover five-figure savings in year one simply by fixing what’s broken and planning ahead.

Conclusion: Business Tax Planning Is a Business Strategy

Tax planning isn’t about paying less for the sake of paying less. It’s about keeping more of what you earn, improving cash flow, and building a business that’s resilient, scalable, and compliant.

Guide to Long-Term Capital Gains Tax in California

Mon, 09 Feb 2026 09:20:39 GMT

If you’re a California business owner, investor, or entrepreneur, capital gains tax isn’t just a line item it’s a strategic risk. I’ve spent over a decade helping business owners navigate capital gains planning, and one thing is consistent: most people dramatically underestimate how much California takes.

Unlike the federal system, California does not reward long-term investing with lower tax rates. That single fact changes how you should think about exits, portfolio rebalancing, and real estate decisions. This guide breaks down how long-term capital gains tax works in California in 2025, where business owners get burned, and what you can do to keep more of what you earn.

Understanding Long-Term Capital Gains Tax in California

At its core, a capital gain is the profit from selling an asset for more than its adjusted basis. Long-term capital gains apply when you hold an asset for more than one year before selling it.

At the federal level, long-term capital gains are incentivized. At the California level, they are not.

This distinction is critical. Many business owners assume that simply holding assets longer automatically leads to favorable tax treatment across the board. In California, that assumption is expensive.

Federal law may reward patience. California taxes profit.

California Capital Gains Taxes

California takes a fundamentally different approach to capital gains than the IRS.

While the federal government distinguishes between short-term and long-term gains, California does not. Every dollar of capital gain, whether from stock sales, real estate, crypto, or business interests is treated as ordinary income at the state level.

In practice, this means:

Long-term planning helps federally, but not in California
Capital gains can push business owners into higher state tax brackets
High-income years often create compounding tax damage

I’ve seen business owners plan meticulously for federal taxes, only to be blindsided by California’s share.

CALIFORNIA’S Long-Term Capital Gains Tax Rate

Here’s the blunt reality:

California has no long-term capital gains tax rate.

Instead, capital gains are folded into your regular income and taxed under California’s progressive income tax system. For business owners earning between $150,000 and $500,000, this is where tax exposure quietly explodes.

California Capital Gains Tax Rates

California’s income tax rates range from 1% up to 12.3%, with an additional 1% Mental Health Services Tax applied to income over $1 million bringing the effective top rate to 13.3%, the highest in the country.

Capital gains stack on top of your operating income. If you sell assets in a strong business year, you’re often taxed at your highest marginal rate, not your average one.

2025 Short-Term Capital Gains Tax Rates

For clarity:

Federal short-term gains (assets held one year or less) are taxed as ordinary income
California taxes all gains this way, regardless of holding period

From California’s perspective, there is no distinction. Long-term, short-term, it’s all income.

How to Minimize Capital Gains Taxes in California

There is no magic loophole, and anyone promising “capital gains tax avoidance” in California is selling fiction.

That said, strategic planning works when done correctly and early.

The key is understanding that capital gains planning in California is less about rates and more about timing, structure, and coordination with your broader tax picture.

Implications, Exemptions and Tax Mitigation Strategies

The biggest implication of California’s approach is this: capital gains amplify bad tax years and punish poor timing.

However, exemptions and mitigation strategies do exist especially for business owners who plan ahead.

Common exemptions and planning levers include:

The primary residence exclusion
Tax-advantaged accounts
Loss offsets
Entity-level planning
Deferral strategies (not avoidance)

Ignoring these isn’t neutral, it’s costly.

The Basics of Capital Gains Tax for California Residents

Here’s what every California business owner needs to internalize:

Capital assets include stocks, business equity, real estate, crypto, and investment property
Personal-use losses (like selling a personal home or car at a loss) are not deductible
Capital losses can offset capital gains
Excess losses can offset up to $3,000 of ordinary income per year, with carry forwards

From a planning standpoint, capital gains should never be viewed in isolation. They interact with entity income, payroll, deductions, and future exits.

California’s Capital Gains Tax Rate

It’s worth repeating because this is where most confusion comes from:

California does not offer reduced tax rates for long-term capital gains.

I’ve reviewed countless portfolios where investors assumed long-term holding meant “tax-efficient.” Federally, yes. In California, no.

Your real lever is not the rate it’s control over when and how gains are realized.

STRATEGIES FOR MINIMIZING CAPITAL GAINS TAX LIABILITY

Embrace Long-Term Investing

While California doesn’t reward long-term holding, the federal government absolutely does.

For business owners in the $150k–$500k range, federal long-term capital gains rates of 0%, 15%, or 20% still matter especially when paired with the Net Investment Income Tax thresholds.

I’ve seen investors reduce their total tax burden simply by delaying a sale into a lower-income year, even though California’s rate stayed the same.

Implement Tax-Loss Harvesting

Tax-loss harvesting is one of the most underused tools among business owners.

Selling underperforming assets to realize losses allows you to:

Offset capital gains dollar-for-dollar
Reduce taxable income by up to $3,000 per year
Carry losses forward indefinitely

One industry study showed that disciplined tax-loss harvesting added over 1% annually in after-tax returns for high-income investors without changing investment strategy.

The key is execution. Wash-sale mistakes erase the benefit.

Consider 1031 Exchanges

For real estate investors, 1031 exchanges remain one of the most powerful deferral tools available.

By reinvesting proceeds into like-kind property, you can:

Defer federal and California capital gains taxes
Preserve capital for reinvestment
Scale portfolios faster

That said, I’ve also seen 1031 exchanges fail due to missed deadlines and poor intermediaries. This is a tool for disciplined investors not last-minute planners.

Use Tax-Advantaged Accounts Strategically

Retirement accounts are not just for retirement they’re tax shelters.

Traditional IRAs and 401(k)s defer taxes
Roth accounts eliminate taxes on qualified withdrawals
Solo 401(k)s offer powerful planning opportunities for business owners

When used correctly, these accounts shield gains entirely from California’s tax system until distribution and sometimes permanently.

Conclusion

California is one of the worst states in the country for realizing capital gains. Pretending otherwise is financially dangerous.

Long-term investing still makes sense, but only when paired with intentional tax planning. Capital gains are not a surprise event. They are predictable, manageable, and when ignored expensive.

If you’re a California business owner earning between $150,000 and $500,000 and planning asset sales, exits, or portfolio changes, capital gains tax strategy should be part of the conversation before you sell and not after.

4 Year End Tax Strategies for East Los Angeles Businesses

Sun, 08 Feb 2026 10:03:42 GMT

Before I dive into some year end tax strategies East Los Angelesbusiness owners can and should be making, I want to address some rumors and misinformation about the SALT workarounds that are available to some of our clients (though not all). Essentially, 22 states (as of this writing) have enacted legislation that enables business owners operating in a partnership or S-corp to deduct their state and local taxes (SALT) beyond the 10K cap that exists on federal returns. These are the states that currently provide this workaround in some measure:

( source article here ) Contrary to what some tax practitioners have been saying, in most cases, you do NOT need to pay these taxes by 12/31/21 to elect for this workaround (if you are eligible). In almost every case, you make this election when you file your entity tax return (often on March 15th), and it will then enable you to claim that deduction on your personal return. There are nuances state by state (for instance, the deadline to have made this election in New York has already passed). But do NOT fall prey to the rumors that you have to suddenly write a big check right now, this week, to have this help you. If you need to talk this over, we’re right here: uplevelservices.com/contact/schedule-an-appointment/ (And please be patient. I can’t guarantee our availability, as we have a LOT of client work to handle these few days before year-end … but we’ll do our best!) Now … a few year end tax strategies you might should consider this last week of the year, in case you haven’t already…

4 Year End Tax Strategies for East Los Angeles Businesses

“We didn’t lose the game; we just ran out of time.” -Vince Lombardi As I mentioned to my family clients, time is short, and some moves do require more than this week to pull off — so I’m restricting myself to year end tax strategies which you can realistically do something with before the end of the year. And, again–these are focused on what will apply to your East Los Angeles business. If you didn’t get that list for a personal/family return, let me know, and we’ll shoot it over to you.

Buy Supplies in Advance (to increase expenses and offset income) How much disposable equipment do you expect to use in 2022? Order it now so the cost is deductible in 2021 if you need to offset income. Buy what you think you’ll need for the coming year, as long as you have the space to store it. This is especially easy to do with software, information courses, or other subscriptions that you know you want to keep. A word of caution: Under a 12-month rule, you cannot deduct prepaid expenses that run more than the end of the year following the current year. For example, if you prepay a three-year subscription to a trade journal, the cost is deductible over three years (not just one).
Work Now, Bill Later Instead of sending an invoice immediately so you’ll receive payment this week, consider waiting until next week. This will ensure that payment is received in 2022, and taxes on the income are deferred for another year. However, it may make sense to adopt the opposite approach — bill immediately to receive the income this year.
Get Ahead On Other Vendor Costs You may have bills piled up that are not due until 2022. If you pay them now, you can deduct the expenses in 2021. Don’t have the funds in your bank account at the moment? Consider putting the expenses on your business credit card if the vendor or other party allows it. Costs charged to credit cards before the end of the year are deductible this year even though the credit card bill isn’t due until 2022.
Pay Out Some Year-End Bonuses Many companies do NOT do this, but this is a quick way that you can reduce your taxable income for 2021 in your East Los Angeles business. Obviously, you’ll need to move rather fast on this and do it through your payroll system. I know there aren’t many hours left to make these year end tax strategies, but if you can squeeze out just a little time for them, you’ll see the good they’ll bear on this year’s taxes. Let’s make the most of what’s left of 2021 and finish strong. Happy New Year, Chris Gelfuso  (562) 259-7777  Uplevel Business Services

Chris Gelfuso’s “Help Us to Remember” Holiday Prayer

Sat, 07 Feb 2026 10:20:30 GMT

It’s Monday the 20th, as I put this together, and many of our East Los Angeles clients and friends are gearing up for a very different kind of holiday week.

I’m very aware that while the holidays are a time of joy for many, they are just as often a time of pain for a significant portion of my contacts as well. That’s probably especially true this year.

Missing loved ones, loneliness, and pain can sometimes be the most prominent decorations of this season, and if that’s the case for you, know that you are not alone and that you are loved and appreciated.

Not only by us here at Team Gelfuso, but undoubtedly by more people than you could possibly imagine. THAT is the bottom-line, real-world truth, whether you believe it or not right now.

And by the way, we are still meeting with East Los Angeles clients to help them with year-end issues, so feel free to use this: uplevelservices.com/contact/schedule-an-appointment/

(I can’t guarantee our availability, as we have a LOT of client work to handle these few days before year-end … but we’ll do our best!)

And, while I often write about important business, financial, and tax-related matters, I thought I’d share with you my annual prayer for the holidays. It’s worth printing and clipping near your monitor, so you can remember it, even beyond this week. I can’t take credit for its authorship, and I don’t honestly remember where I got it.

But it’s good.

Chris Gelfuso’s “Help Us to Remember” Holiday Prayer

“There are no strangers here; only friends you haven’t yet met.” – William Butler Yeats

“God, help us to remember that the jerk who cut us off in East Los Angeles traffic last night is a single mother who worked nine hours that day and is rushing home to cook dinner, help with homework, do the laundry, and spend a few precious moments with her children.

“Help us to remember that the pierced, tattooed, disinterested young man who can’t make change correctly is a worried 19-year-old college student, balancing his apprehension over final exams with his fear of not getting his student loans for next semester.

“Remind us, Lord, that the scary-looking bum, begging for money in the same spot every day (who really ought to get a job!) is a slave to addictions that we can only imagine in our worst nightmares …

“Help us to remember that the old couple walking annoyingly slowly through the store aisles and blocking our shopping progress are savoring this moment, knowing that, based on the biopsy report she got back last week, this will be the last year that they go shopping together.

“Father, remind us each day that, of all the gifts you give us, the greatest gift is love. It is not enough to share that love with those we hold dear. Open our hearts not to just those who are close to us, but to all humanity. Let us be slow to judge and quick to forgive, show patience, empathy, and love.

Amen.”

Warmly,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Tax Paperwork Checklist

Fri, 06 Feb 2026 12:19:21 GMT

These days, I’m often glad that it’s our busy tax filing season, so that I have an easy excuse when political conversations are happening: Oh THAT [crazy new political story]? Huh, didn’t see it — I’m too busy with tax season.

With all of the chaos out there, the division and shouting — from Washington to Facebook to right here in Downey, it’s helpful to try to tune out the shouting and focus on what is actually in our sphere of productivity.

So speaking of being productive, it might be time to get moving on your tax files, if you haven’t already.

The IRS did a study a few years ago that computed that the *average* time that it takes to complete a tax return is 22 hours. And obviously, that number varies by the return, but I’m reminded (again) of the blessing that it is to free our clients’ TIME — not to mention the additional deductions we find, the stress we remove, and the security we can provide in knowing that it’s being handled right.

Already, we have many, many Downey tax clients who have filed, have received refunds and have written us notes telling us that they’ve never been more pleased with their filing experience. And of course, this makes me happy, as you might imagine.Now, I’ve got something here that we posted towards the beginning of January, but as we are moving into the depths of March, I thought it would be worth posting once more…

Christopher J. Gelfuso Tax Paperwork Checklist

“We are not retreating — we are advancing in another direction.” -Douglas MacArthur

With the increased penalties associated with the ACA in 2017, and all of the other changes every year, filing your taxes on your own is not for the faint of heart — even with nice-looking softwares on the market which purport to make it easy for you.

But that’s what we’re here for. Let us be your easy button.

Below is a list of what you will need during the tax preparation process. Not all of them will apply to you — probably MOST will not. Nonetheless, it’s a useful checklist.

Before you get overwhelmed: yes, this is a long list — but it’s the unfortunate reality of our tax code that it’s not even comprehensive! But these items will cover 95% of our Downey tax clients. Really, this is for ensuring that we’re able to help you keep every dollar you can keep under our tax code.

Even if for some strange reason you won’t be using our cost-effective services this year, feel free to use this list as a handy guide…

Personal Data

Social Security Numbers (including spouse and children)

Child care provider tax I.D. or Social Security Number

Employment & Income Data

W-2 forms for this year

Tax refunds and unemployment compensation: Form 1099-G

Miscellaneous income including rent: Form 1099-MISC

Partnership and trust income

Pensions and annuities

Alimony received

Jury duty pay

Gambling and lottery winnings

Prizes and awards

Scholarships and fellowships

State and local income tax refunds

Unemployment compensation

Health Insurance Information

* All 1095-A Forms from marketplace providers (if you purchased insurance through a Marketplace)

* Existing plan information (policy numbers, etc.)

* If claiming an exemption, your unique Exemption Certificate Number

* Records of credits and/or advance payments received from the Premium Tax Credit (if claiming)

Homeowner/Renter Data

Residential address(es) for this year

Mortgage interest: Form 1098

Sale of your home or other real estate: Form 1099-S

Second mortgage interest paid

Real estate taxes paid

Rent paid during tax year

Moving expenses

Financial Assets

Interest income statements: Form 1099-INT & 1099-OID

Dividend income statements: Form 1099-DIV

Proceeds from broker transactions: Form 1099-B

Retirement plan distribution: Form 1099-R

Capital gains or losses

Financial Liabilities

Auto loans and leases (account numbers and car value) if vehicle used for business

Student loan interest paid

Early withdrawal penalties on CDs and other fixed time deposits

Automobiles

Personal property tax information

Department of Motor Vehicles fees

Expenses

Gifts to charity (receipts for any single donations of $250 or more)

Unreimbursed expenses related to volunteer work

Unreimbursed expenses related to your job (travel expenses, entertainment, uniforms, union dues, subscriptions)

Investment expenses

Job-hunting expenses

Education expenses (tuition and fees)

Child care expenses

Medical Savings Accounts

Adoption expenses

Alimony paid

Tax return preparation expenses and fees

Self-Employment Data

Estimated tax vouchers for the current year

Self-employment tax

Self-employment SEP plans

Self-employed health insurance

K-1s on all partnerships

Receipts or documentation for business-related expenses

Farm income

Deduction Documents

State and local income taxes

IRA, Keogh and other retirement plan contributions

Medical expenses

Casualty or theft losses

Other miscellaneous deductions

We’re here to help. Let me know if you have any questions.

Warmly,

Christopher J. Gelfuso

 (562) 259-7777 

 UpLevel Business Services of Downey

Let’s Talk About Your Business…

Fri, 06 Feb 2026 12:14:26 GMT

I know your business. Because we deal with clients like you all the time, I’ve got a leg up on all those “gurus”, since I’m right there in the trenches with you. – Christopher J. Gelfuso

Christopher J. Gelfuso here, your tax and accounting professional. I know that we haven’t posted much before, but starting this week I’m hoping that you and I can have a conversation about your business.

You and I both see the headlines. Questionable government decisions, taxes sure to rise in the next few years (whether or not it will really help the economy) your clients and customers are feeling a new pinch, and, well… overall the deck is stacked against small businesses like yours and mine. Right there in your neighborhood, I know that businesses could use a “shot in the arm”.

Not Just “Tax Tips”…

As I look over business tax returns and the books of our clients and associates, I often find ways to help the bottom line with little-known tax savings, etc.

But I also see that if I could help “fix” sales, marketing, management and leadership problems for my clients it would go a long way to help. I don’t pretend to have all the answers, but I’ll pass along what I’ve seen work for me, and for other clients like you.

And, I’ll be frank…if I can help your business THRIVE during these economic times with my advice, it helps MY business. I like keeping my clients doing well, because it means that our services will be paid for! And as our clients grow their businesses, their need for our services also grows. It’s a true “win, win.”

But the problem is that there’s a lot of confusion out there about how to grow your business right-with cost-effective, powerful strategies which cut through the clutter and create sales. There’s a ton of so-called “experts” out there, and they often give conflicting advice.

So starting this week, we’ll be sending you notes and tips on a weekly basis-offering “Real World” Business Strategy (which you can use) and guidance for increasing sales, improving leadership, and all-around business growth and development. And I hope you’ll forgive me if I lay aside “accountant-jargon” and give it to you straight!

Here we go…

Christopher J. Gelfuso’s “Real World” Business Strategy

First Steps in This Economy / Getting To Know You

In the coming weeks, we’ll discuss both general concepts and specific strategies…but now, in this first week, here’s a good start (plus a question for you):

The fastest way to fix financial problems in your business is to fix the sales problem. Yes, I know – everybody’s business is “different”, but I’ve seen it across almost every business category: Make more sales and a host of problems disappear.

(Now for some of you, I know that your increasing marginal costs are making your sales less powerful, but we’ll address that in the future.)

So how do you do that? Well, there’s obviously a bunch of good answers to that question-but for a quick surge there are three lists to get ahold of right now.

Existing Clients
“Lost” Clients
Targeted Prospects

The first one might be obvious, but I’m continually amazed at how many businesses don’t maintain good records of their current customers. These are the easiest folks to sell to again. They’ve already indicated interest in your business, and have demonstrated it with their wallet. Go back to them this week with a promotion just for them, and the results will be better than any other list.

“But what if I don’t have a list?”

Good question, and if that’s the case: start one now. Whether it’s by giving an incentive at the point-of-sale or client meeting to have them provide you their details, or if it just means hiring a high school kid to compile all the data for you – this list is your most important asset in your business.

I’ll address the other two groups in the weeks ahead, as well as creative strategies for going after your existing customers, but I’ll leave you with this request:

Help Us Help Your Business!

Would you take a moment to drop us a line with one of the following?

A) Let us know what kind of service you’d like to see us provide for you and your business in the future, which we are not currently providing you.

B) Would you write me a quick note about how well we’ve already served you? Businesses like yours are looking for a good tax professional-and we’ve found that what business owners really want to know is what others say about us, not what we say about ourselves. Your note would really help!

We’ll be back again next week!

Christopher J. Gelfuso

The First Thing You Need To Do

Fri, 06 Feb 2026 12:11:29 GMT

Christopher J. Gelfuso here, your tax professional.

I know that we haven’t posted much before, but starting this week I’m hoping that you and I can have a conversation.

You see, there hasn’t been an environment like the one we’re now facing in this economy and in our nation for quite a while. The fact is-I know you’ve got questions…about personal financial strategy, about tax specifics and about how to steer your way through these times we’re living in.

Not Just “Tax Tips ”…

I won’t pretend to have ALL the answers, but I’m going to do my best to give you information from the “real world”. Yes, there’s a lot of so-called “experts” out there (theorists, authors, or multi-millionaire “gurus”) who make it their job to spout opinion.

But more often than not, they don’t know what it’s like to face the things that you and I face-right here.

I also want to give YOU the chance to contact my staff and me about questions you’ve been having. I’ve found over the years that people generally want more (not less) from their tax professional in terms of communication and relationship. So you’ll be hearing from us more.

Bottom line:

starting this week, we’ll be making a major effort to keep in touch with you on a weekly basis offering “Real World” Personal Strategy (not just pie-in-the-sky theory) and guidance for growing wealth, keeping sane in this world, and all-around personal development.

And it will NOT be just tax tips (it’s our job to take care of all that for you anyway). Sure, there will be tax items you’ll need to know about-which we’ll send your way-but I believe you’ll find these notes to be interesting and useful on a variety of levels.

So let’s get started, shall we?

Christopher J. Gelfuso’s “Real World” Personal Strategy

True Wealth / Getting To Know You

In the coming weeks, we’ll discuss both general concepts and specific strategies…but now, in this first week, here’s a good start (plus a question for you):

Christopher J. Gelfuso’s

Thought: Learning to be content in all circumstances is the foundation for generating real wealth, especially in this economy.

Why do I say this? Well, it’s my job to help people “ride out the storms” in their financial life. And I’ve noticed a very real difference between those that handle it well…and those that, well, don’t.

See, relative to their income, the rich are frugal. They save and invest. They spend less than 65% of their take-home pay on day-to-day expenses. They save at least 10% in their retirement accounts and another 5% in taxable savings. They direct another 10% toward unknown big purchases. And they even live frugally enough to give another generous 10% to charities.

Now-remember when I said this would be “real world”? The fact is, I know that you may not be even close to this, and you could even be feeling guilty right about now. That’s the LAST thing I want to do to you, but here’s what you CAN do right now:

Set it as your personal goal to increase (or start) your household money moving in these directions: 1) savings 2) retirement 3) short-term (big purchase like a car or furniture) savings and 4) giving. This week, choose ONE of these categories and move money there, however small the amount. Then, when you do so-let somebody know you did it. Not to brag, but to settle it into your mind.

You’ll find that taking a positive direction in one of these areas-even if it’s just a measly 5 bucks-will go a long way to increase your peace of mind.

And with THAT peace of mind, you’ll handle the upcoming storms real well.

That’s the Real World, my friend.

And finally, my Question: How could my staff and I serve you better? Would you take a moment right now, to reply to this email with one of two things for me?

Either…

A) Let us know what kind of service you’d like to see us provide for you and your family in the future, which we are not currently providing you.

B) Would you write me a quick note about how well we’ve already served you? Lots of people like you are looking for a good tax professional-and we’ve found that what people really want to know is what other people say about us, not what we say about ourselves. Your note would really help!

Thanks! To your success,

Christopher J. Gelfuso

Why Price Reductions are Bad Positioning for (Almost) Any Business

Fri, 06 Feb 2026 12:06:34 GMT

Our hearts remain with those in Houston and, now, South Florida, who has been dealing with such a massive disruption of their lives — and during a time of year that is already one of the busiest.

The IRS has set up a “catch all” page for those cleaning up from Harvey, Irma, and other such disasters, and it can be found right here: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations . And here’s a recent article that goes into deeper detail about financial and data recovery in the wake of disasters: https://www.accountingtoday.com/news/irs-offers-taxpayer-disaster-planning-and-recovery-advice-for-hurricane-irma

And, of course, if you have been impacted by any of these disasters in any way, we are here for you (or for your friends)! Allow us to help you sort through the financial muck so you can better deal with all of the mess of cleaning up other aspects of your life.

A quick reminder, before I get to my subject of the day.

Friday, September 15th is the estimated tax payment deadline for the third quarter. These estimates are for people with income that is not covered by withholding through payroll. If you are an independent contractor or have your own business, call us to set up a much more convenient and potentially tax saving method of paying in your taxes!

And, well, speaking of Downey businesses, I have too many friends who start one or seek to turn around a flailing one, using this principle as a guiding light.

That would be a mistake.

Why Price Reductions are Bad Positioning for (Almost) Any Downey Business

“How many things in your life do you do automatically, routinely, that is a waste of time but you don’t take the time to remedy them?” -Robert S. Scott

I discuss this all the time with my Downey business owner clients — how to price their services. You see, often, we might hear consumers say, “Well, I would buy it if it were in my price range.” And, that idea tempts many business owners to lower their prices–just to sell more products.

However, as you already know, price reductions sometimes create more problems than they solve.

For example, price reductions…

* Decrease net profits

* Lead to the purchase of lower-quality products

* Increase customer demands to drop the price even lower!

* Require even more sales to make up the difference in revenue

* Need a larger quantity of products

And, in the end, there will always be someone willing to go out of business faster than you.

Remember this: price is not a benefit. The close of a sale is not determined on the cost of your product. If you truly “sell” your customers and prospects, they will purchase your products/services no matter what price you determine.

That’s the plain truth — and you’ve probably seen it in your own purchase patterns.

If a customer or prospect doesn’t buy — and they claim the cost had something to do with it — you can guess they probably wouldn’t have purchased anyway.

As a small business owner, and marketer, your job is to sell your products and services. But the actual art of selling has nothing to do with the price of the product.

By the time your contacts find out about the price, they should be determined to purchase no matter what the cost.

So, find “real” benefits (value) to sell to your customers and prospects. Help them to see how great their life is with your product, and you’ve got a customer. Point out their current pain, and your contact will do anything to get rid of it.

Set your prices and hold fast. If you’ve marketed correctly, you will still have customers anxious to do business with you.

Price gouging is a horrible thing — but, really, that’s a bogeyman that lives more in our heads than in real life.

Charge your worth. You deserve it.

Feel very free to forward this article to a Downey business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for Downey families and business owners. And we always make room for referrals from trusted sources like you.

Warmly,

Christopher J. Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

The Pareto Principle And Your Company’s Work Cycle

Fri, 06 Feb 2026 12:01:58 GMT

Slogging through the summer, and with the weather still hot, it can be really tempting to sort of press cruise control for the month of August until Labor Day hits us, and *then* really put that nose to the grindstone.

But could it be that a rhythm of working a little less might actually make you more productive?

It’s a pretty counter-intuitive notion, but the reality is that we Downey business owners entered into this venture for many reasons … and I know that for many of us, prime among them was this notion of freedom.

But too often what we thought would mean freedom instead leads us into a kind of slavery that we could never have predicted.

The notion of “80/20” (the Pareto Principle) is something worth studying when you are caught in this cycle of relentless *work*. And I hope to give you some inspiration to that end today.

The Pareto Principle And Your Downey Company’s Work Cycle

“Everyone is trying to accomplish something big, not realizing that life is made up of little things.” -Frank Clark

There was a recent book that changed a lot of minds about management, and it’s worth checking out. It’s called The 80/20 Manager by Richard Koch, and in it the author cited a fascinating experiment on the subject of “forced time off”:

“…(Boston Consulting Group) consultants were obliged to take one day and one evening off, during which time they were not allowed to use email or voice mail…I’m sure you can guess the results. The teams who were forced to take days and evenings off rated higher not just on work-life balance but on job satisfaction, learning, personal development and open communication within the teams. Moreover, their clients reported greater value delivery than the clients of the control groups. Empirical proofs that less really is more.

“I’m waiting for someone to have the courage to test what would happen if a team is forced to take off two days… then three, then four. Let’s see what happens when they work just one day and one evening each week.“ (page 174)

The Perlow & Porter experiment cited above (and further detailed here: http://hbr.org/2009/10/making-time-off-predictable-and-required/ ) hints at why this is so profoundly true. Faced with the constraint of having to take time off, the consultants at BCG suddenly found themselves having more discussions about HOW work was being done and fewer conversations about WHAT work was being done.

“People were initially skeptical about spending so much time looking at work processes. But in the end, most teams found it helpful. The check-ins not only allowed teams to engage in explicit conversations about achieving their time-off goals, but they also sparked valuable discussions–involving the whole team–about priorities, expectations, and problems people were facing.

“By contrast, in typical teams, consultants generally start talking about problems only when they are already overstressed and less able to think rationally or do much about them.”

Re-read that last sentence. The always-on, smartphone-addicted lifestyle of the average Downey business owner makes it LESS likely that you will think rationally about the strategic decisions you need to make in your business.

But forcing yourself to take time off, one evening a week, then one day a week — and perhaps yes, as Mr. Koch recommends, even 4 days a week — will force you to make clearer more strategic decisions.

Working less CAN equal earning more.

It’s an equation that seems to violate everything we’ve been told about work … we’ve been told that you work your tail off, lay aside a bunch of profit and then some beautiful day in the future, well, you’ll be able to work less.

But could this entire paradigm be wrong?

“Working less = earning more” is an equation that I have come to believe must be considered by the digitally-connected business owner who wants to take their Downey business to the next level.

So, take one day off next week as a test. I wonder what would happen?

I’m grateful for our partnership and dedicated to your success.

Warmly,

Christopher J. Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Keeping Your Business Focused On Revenue Growth and Customer Retention

Fri, 06 Feb 2026 11:59:48 GMT

We’ve been talking about meetings, efficiency, and how Downey small business owners simply have to stay laser-focused on tasks that will bring them and their business towards actually achieving their goals.

Especially with all of the political and cultural chaos we’re experiencing in this particular moment, it’s worth emphasizing that staying on point is a battle worth fighting.

We can get so bogged down with what’s happening around us, or on the small, picayune details of life.

But what I’ve seen when working with my Downey business-owner clients is that when you focus on something enough — however small — it becomes “big” and crowds out room for the truly significant issues.

The client service coordinator focuses on moving the paper, ticking off the tasks in the software, getting the phone answered … and maybe focusing just as much on the person in the next room she doesn’t like, the chair that squeaks … and on and on.

We all need to be brought back to what’s important in business. Over and over.

It adds purpose to what we do. It’s also the magic ingredient that separates the good from the great.

And I’m here today to remind you (and perhaps your staff, now!) of it…

Keeping Your Downey Business Focused On Revenue Growth and Customer Retention

“It is not fair to ask of others what you are not willing to do yourself.” -Eleanor Roosevelt

What are the most important tasks in your business? Taking care of customers and growing revenue.

Add any trendy business philosophy you want on top of that, and it still gets down the same thing.

So … EVERYONE on your team should either be adding revenue or helping to control expenses. I suggest you (constantly) ask your staff — and yourself — what they can do to help:

1. Get more customers

2. Keep customers longer

3. Increase the amount of each transaction

4. Control expenses

5. Get more referrals

6. Get good online reviews

7. Make operations more efficient

So, in that vein, here’s a discussion you can have at your next staff meeting:

* Review and discuss these 7 issues

* Ask everyone to write down the things that would help them do their job better (or obstacles that are in their way)

* Ask everyone to write down ideas for each of the 7 issues between now and the next staff meeting

* Review everyone’s first draft privately or as a group in your next staff meeting

Everyone in your business must be involved in growing revenue or controlling expenses. They must see their role in that part of the business. And YOU — the business owner — must keep that discussion alive and dynamic.

Good luck!

Again, I don’t pretend to be a “guru” … I just see what works, and I pass it on.

I’m grateful for our partnership, and for your referrals.

Warmly,

Christopher J. Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Solving Problems in Downey Businesses with Effective Solutions

Fri, 06 Feb 2026 11:55:37 GMT

There’s this idea out there among many wannabe Downey business owners that they have to come up with the next completely fresh idea in order to have a great business. Shows like Shark Tank (which I love) go towards creating this kind of mindset – although the sharks do a very nice job of bursting the bubbles of anyone who thinks that business success is merely about having that great idea. But I ran across this story about a company that was founded in the ’70s, and whose product you have very likely seen (especially if you have ever owned a dog). It *is*, in fact, about the idea. But the idea was found within the cast-offs of an existing vocational work, and there might be something in there that sparks an idea for you. Because I still think there is something to be said for us “small fry” Downey entrepreneurs — the service business owners, the independent retailers, the salespeople, the franchisee, etc. — who look at the stories of those who have succeeded rather dramatically, and to see what it is they did. Whether it’s a new product or service line within your existing business, or something brand new, sometimes we need to just open our eyes to identify and begin solving problems in an effective way. Solving Problems in Downey Businesses with Effective Solutions “Every problem has in it the seeds of its own solution. If you don’t have any problems, you don’t get any seeds.” – Norman Vincent Peale Joe Markham had a problem. The three-year-old German Shepherd he’d adopted, Fritz, loved to chew rocks. So much, in fact, that his teeth were one-third their normal size. In every other way, Fritz was a wonderful and loving companion. But Markham knew the dog’s one bad habit was endangering his health. So Markham, a partner in a motorcycle shop, encouraged Fritz to try softer substitutes: radiator hoses and motorcycle tires (customers often saw Fritz flying through the shop with a whole bike tire sticking out of his mouth). But the dog didn’t favor either of these items enough for it to become a rock replacement. When winter came, the bike shop kept busy by working on cars and snowmobiles. One day, Fritz stretched under a workbench, pulled out a part from a car, and trotted over to Markham, where the dog dropped the part on Markham’s foot. This rubber-knobbed gizmo was a prize — and it was love at first bite. Fritz forgot his beloved rocks. His new obsession had customers asking what kind of toy was making the dog so joyful. That’s when Markham speculated that if his dog loved this type of rubber so much, other dogs would too. And so began a long journey of prototypes, rejections, manufacturing woes, ridicule, and late-night commercial slots. But Markham persevered because he knew his real customers — the furry, four-legged ones — would prove him right. Today Markham’s toy, the Kong, has surpassed sales of 50 million products — almost one for every dog in America. And my take is that while perseverance played a role in his success, the real secret was that he stayed focused on finding a fun, effective solution to a common problem. So I ask you, Downey business owners… Where can YOU find these hidden answers to common problems faced by your own customers? It doesn’t have to involve some witty, new invention — it can simply be serving a felt need effectively and well. But those problems ARE out there. And the answer might very well be sitting in your cast-offs. Feel very free to forward this article to a Downey business associate or client you know who could benefit from our assistance — or simply send them our way? While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for families and business owners. Warmly, Christopher J. Gelfuso (562) 259-7777 Uplevel Business Services

My East Los Angeles Small Business Health Quiz (Part 2)

Fri, 06 Feb 2026 11:53:00 GMT

Let’s start today with a couple questions I’ve been getting here at Uplevel Business Services from our East Los Angeles small business clients about the second round of the PPP, and some of the new provisions of the recent bill that affect businesses.

If I received the first PPP, should I include this number in calculating whether I “lost 25%+” to qualify for the second round?

As you might remember, the requirement in order to receive a second PPP is that the small business has less than 300 employees and can demonstrate a revenue reduction of 25 percent. But that revenue reduction figure should NOT include any funds from the first PPP.

Also, you can calculate this either by quarter, or by fiscal year — whichever is more advantageous. Many Los Angeles area small businesses need help with these calculations … that’s what we’re here for.

If I received the “grant” portion of the EIDL, is this considered taxable income?

No ��

Now … I’m sure there might be more things you’re wondering. Send us an email, or use this: https://calendly.com/uplevelservices/taxprep-60min

But I also have questions for YOU, reader, if you are a local small business owner …

I’ve put them together below. They are a continuation from last week.

My East Los Angeles Small Business Health Quiz (Part 2)

“Life is really simple, but we insist on making it complicated.” -Confucius

Regardless of national events, or where things are at with PPP and EIDL — as a Los Angeles (or beyond) small business owner, it’s important that you take a REGULAR, clear-eyed look at the underlying legal and financial foundations of your business.

As we all pull our tax documentation together, I can’t think of a better time.

I started with these last week, and I’m wrapping them up today.

Take a look at each of these questions, and if you are troubled by any of your answers — send me back an email. If it’s not something we’re equipped to handle, we can equip you with a good advisor.

Regardless, we can talk about them when we do meet for your taxes.

Gelfuso’s Small Business Health Quiz

From last week…

#1: Is the value of your business firmly established?

(Buy/Sell Agreements)

#2: Is there an emergency plan?

(Will & Asset Protection Strategy)

#3: What happens next?

(Business Succession Plan, and more)

Now to the next questions…

#4: What are your retirement plans?

Questions to consider:

Do I know how much income I will actually need at retirement?

How much control in the business must I maintain to secure my retirement income?

Have I looked into financing options for key employees to buy me out?

Do I want to be running my business, full-time, five years from now?

Do I have contribution protection for my retirement if I were to become disabled?

Too many business owners view their business as their “retirement cash cow” … but have not made serious plans for how it can BE that cash cow.

#5: Are all of your eggs in one basket?

Questions to consider:

Do I have reliable investments, other than my business?
Will my business assets account for less than 25% of my retirement plans?
In the past year, have I spent more than one hour planning my retirement?

If you haven’t diversified your retirement income outside of your business, you could be in trouble.

#6: Is there a REAL tax strategy?

Consider these questions …

Am I proactively planning to deal with tax law changes?
Have I determined my financial goals — and how taxes will affect them?
Will I maximize my tax-free earnings in retirement (and before retirement)?
Do I have an exit plan for my business — and is it written down?

Again, all of these issues always seem “procrastinate-able” on the front end … but if you don’t have a good answer to more than a couple of the above questions, you might be cruising for a financial bruising.

We will either help you fix these issues ourselves, or put you in touch with someone competent who can help fix them. Use this:

https://calendly.com/uplevelservices/accounting-consultation

I’m grateful for our partnership, and for your referrals.

Warmly,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Feel free to share this article with a East Los Angeles area (or beyond!) business associate or client you know who could benefit from our assistance. While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for families and business owners.

Six Options For East Los Angeles Small Business Aid And Tax Savings

Fri, 06 Feb 2026 11:46:37 GMT

My goal today is to simplify your options.

There is so much noise, and so many conflicting voices about all of this, that I wanted to give you an authoritative, basic rundown of what’s being made available to you and other East Los Angeles small business owners by the federal government.

These kinds of programs are very rare opportunities — which makes sense, given that this has been a very rare kind of year, yes?

But as we saw with the first round of the PPP, and the EIDL … there is a window during which a East Los Angeles business owner should ACT in order to get what is on offer. The first iteration of the first round of the PPP got snapped up VERY fast, after all, as did the “emergency grant” component of the EIDL.

The second round of the PPP, the expanded and more profitable “Employee Retention Credit” and various other options are all getting debated within business social groups, and that’s fine.

This is why it makes sense to have someone in your corner who can just do this stuff for you. If you are looking for some advice you can schedule an appointment here:

https://calendly.com/uplevelservices/business-consultation

But today is about simplifying, and clearing up the confusion — hopefully helping YOU to act quickly, and wisely with what is available to you by way of small business aid and tax savings options.

NOTE: This list does NOT include the PPP and other such options from the SBA. This is just the goodies within the tax code, which is why I put it together.

Six Options For East Los Angeles Small Business Aid And Tax Savings

“15 years ago, the internet was an escape from the real world. Now, the real world is an escape from the internet.” -Noah Smith

Depending on how your business entity is structured, you could be paying anywhere from 15-25% (or more!) of your business revenue into the coffers of the IRS and various state departments of revenue.

Which, of course, is what we’re here to help you minimize.

That’s why the “second stimulus bill” signed into law in late December 2020 was a welcomed one for us here at Uplevel Business Services — simply because it means we can do MORE for our East Los Angeles business owner clients during a very tumultuous year for many. Using the various tax savings and small business aid options is something we’d be happy to go over with you to see what is appropriate for your unique situation.

So, because we’ve been getting so many questions about these, I’d like to run them down as simply as possible so you can make the right choice of action. Because action will be necessary in some cases.

1) Revamped and expanded Employee Retention Tax Credit

In order to get this credit, you must have fewer than 500 employees (previously 100). You also must have been forced to at least partially suspend business operations in 2020 or had a 20% revenue decline in any quarter compared with the same quarter of 2019.

If you pass these requirements, you can get a tax credit equal to 70% of each employee’s wages (which now includes health insurance payments), up to $10k per worker per quarter (for Q1 and Q2 of 2021). And there are some retroactive things we can do for 2020 as well, in some cases.

2) Families First virus-related Tax Credit

This has been extended through March 31, 2021. Many employers had been required to keep paying employees forced to miss work due to health restrictions (e.g. staying home with children while schools were closed), but offered a tax credit to help cover the cost. Employers no longer must pay such workers. But the new bill extends the refundable tax credit through the first quarter for those bosses who are still doing so.

3) The Work Opportunity Tax Credit

This is a nice bonus, depending on your hiring practices and the state of your business. This is a credit for hiring a person from certain categories (veterans, ex-felons, welfare recipients) but, more pertinent for many: people who have been jobless for more than six months. The credit, which is calculated per employee, ranges from $1,200 to $9,600, and we would take this on your BUSINESS tax return. This is also available for pass-throughs (i.e. S-Corps, Partnerships).

4) Deferring Employer SS taxes (FICA)

This is a dicey one, because it’s essentially a loan. Regardless of whether your company has been affected by the pandemic, you can defer your employer’s Social Security (FICA) taxes for the first quarter this year. But be warned: this is NOT a credit or a forgiveness. It’s merely a deferring of the inevitable — and you will still be required to pay up. Half will be due by the end of 2021, the rest at the end of 2022. But, in certain circumstances, it can function like an interest-free loan from Uncle Sam.

5) Help for non-profits

Essentially, the $300 ($600 for joint returns) above-the-line deduction for all taxpayers, whether they itemize or not, has been extended through the end of 2021. Corporations will also be allowed to deduct up to 25% of their taxable income for charitable contributions, which is an increase from the normal 10% allowed.

6) New Loss “CarryBack” options

This is not often discussed, but can be very powerful for the right business, and this came to us in the original CARES Act. For one time only, companies that lost money in 2020 (2019 and 2018 tax years are also eligible) can carry back that loss for up to five years against their prior tax returns.

So, what this means is that if you paid taxes for any of those years … but LOST money recently, we can go back and attach that to previous years, and you get a retroactive refund.

But this doesn’t happen automatically.

None of this does, actually. Which is why we are here, and why you should let us help you.

Use this:

https://calendly.com/uplevelservices/business-consultation

I’m grateful for our partnership, and for your referrals.

Warmly,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

A Checklist For East Los Angeles Business Owners’ For 2020 Personal Income Taxes

Fri, 06 Feb 2026 11:42:55 GMT

So, last week I ran through the (rather incredible) selection of NEW and/or extended tax credits available for East Los Angeles business owners.

That’s just the tip of the iceberg though.

But this is the great thing about working with business owners in tax strategy … we can get so creative and make a MASSIVE impact for your bottom line.

It does take some partnership with you, of course.

As a Los Angeles business owner, you may have a couple different tax returns to wade through each year (and maybe more, depending on the number of active entities you’re managing).

Want to get a jump on things? Yes, or yes? Here’s where you can reach us:

https://calendly.com/uplevelservices/taxprep-60min?month=2021-01

Even though the IRS isn’t accepting electronic submission of tax returns until Friday, February 12, we are already in active conversation with clients to get started. And even if you do NOT have all of your documentation yet available, we can still get the ball rolling for you.

So, to that end, I’m here today with a large tax checklist that you can work from for your personal income taxes, understanding that every situation is a little different. Every East Los Angeles business will have different requirements as well.

On the business side, much will be determined by the state of your books, expense documentation, and other such factors. We can dive into your books for what is needed, if it comes to that.

As I said, this is meant to be informational for you, and as something you can hold on to over the following weeks as you begin the process of excavating your financial files. There may be certain situations where we’ll need other documentation to get you even more deductions. But, of course, we’ll let you know about that, should the situation arise.

So … here we go.

A Checklist For East Los Angeles Business Owners’ For 2020 Personal Income Taxes

“Don’t wait. The time will never be just right.” – Napoleon Hill

As I mentioned last week, depending on how your business entity is structured, you could be paying anywhere from 15-25% (or more!) of your business revenue into the coffers of the IRS and various state departments of revenue.

But this is what we’re here for. Working with business owners gives the chance to do a lot of damage to tax bills … but personal taxes are still “a thing”.

Below is a list of what you will need during the tax preparation process on the personal side. Not all of them will apply to you — probably MOST will not. Nonetheless, it’s a useful tax checklist.

Before you get overwhelmed: yes, this is a long list — but it’s the unfortunate reality of our tax code that it’s not even comprehensive! These items will cover 95% of our clients. Really, this is for ensuring that we’re able to help you keep every dollar you can keep under our tax code.

Also note: There are certain CARES Act (stimulus) and CAA (second stimulus) items that you will need to know as well. I’ve notated them in italics.

But again … we will be your guide. That’s what we’re here for.

Even if for some strange reason you won’t be using our cost-effective services this year, feel free to use this list as a handy guide…

Personal Data

Social Security Numbers (including spouse and children)

Child care provider tax I.D. or Social Security Number

Employment & Income Data

-Amount of CARES Act (1st Stimulus) payment received – paid ~ April/May 2020 ($1,200 per adult, $500 per child)

-Amount of CAA (2nd Stimulus) payment received – paid ~ early January 2021 ($600 per adult & child)

W-2 forms for this year

Tax refunds and unemployment compensation: Form 1099-G

Miscellaneous income including rent: Form 1099-MISC

Partnership and trust income

Pensions and annuities

Alimony received

Jury duty pay

Gambling and lottery winnings

Prizes and awards

Scholarships and fellowships

State and local income tax refunds

Unemployment compensation

Health Insurance Information

NOTE — As it says on the IRS health insurance information page, form 1040 will not have the “full-year health care coverage or exempt” box and Form 8965, Health Coverage Exemptions, will no longer be used. You need not make a shared responsibility payment or file Form 8965, Health Coverage Exemptions, with your tax return if you didn’t have minimum essential coverage for part or all of 2020.

* All 1095-A Forms from Marketplace providers (if you purchased insurance through a Marketplace)

* Records of credits and/or advance payments received from the Premium Tax Credit (if claiming)

Homeowner/Renter Data

Residential address(es) for this year

Mortgage interest: Form 1098

Sale of your home or other real estate: Form 1099-S

Second mortgage interest paid

Real estate taxes paid

Rent paid during tax year

Moving expenses (if in active military, and moving for new orders)

Reimbursements for moving (counts as ordinary income)

Financial Assets

Interest income statements: Form 1099-INT & 1099-OID

Dividend income statements: Form 1099-DIV

Proceeds from broker transactions: Form 1099-B

Retirement plan distribution: Form 1099-R

Capital gains or losses

Financial Liabilities

Auto loans and leases (account numbers and car value) if vehicle used for business

Student loan interest paid

Early withdrawal penalties on CDs and other fixed time deposits

Automobiles

Personal property tax information

Department of Motor Vehicles fees

Expenses

Gifts to charity (receipts for any single donations of $250 or more)

Unreimbursed expenses related to volunteer work

Investment expenses

Job-hunting expenses

Education expenses (tuition and fees)

Child care expenses

Medical Savings Accounts

Adoption expenses

Self-Employment Data

Number of Days you were unable to work due to being quarantined due to the COV virus or due to symptoms of COV, including time while waiting for test results (do not include days reimbursed by an employer)

Number of Days you were unable to work due to caring for a family member who was quarantined due to COV or caring for a child due to the closure of a childcare facility / school

Estimated tax vouchers for the current year

Self-employment tax

Self-employment SEP plans

Self-employed health insurance

K-1s on all partnerships

Receipts or documentation for business-related expenses

Farm income

Deduction Documents

State and local income taxes (note: $10,000 limit, as last year)

IRA, Keogh and other retirement plan contributions

Medical expenses

Other miscellaneous deductions

An important thing to understand is that we will guide you through the process, and that although much has changed this year, we are on top of these changes on your behalf.

We’re here to help. Let me know if you have any questions. Use this:

https://calendly.com/uplevelservices/taxprep-60min?month=2021-01

I’m grateful for our partnership, and for your referrals, ~Contact.FirstName~.

Warmly,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Measuring Key Numbers In Your East Los Angeles Business And Developing Accountability

Fri, 06 Feb 2026 11:30:43 GMT

During the first Super Bowl that Tom Brady won (with the Patriots), these were some of the companies who advertised (hat tip to Jon Erlichman of Bloomberg for this research):

AOL
Blockbuster
Radio Shack
Circuit City
CompUSA
Sears
HotJobs
Yahoo
VoiceStream Wireless
Gateway Computers

The year was 2002, and life looked a little different, eh? BUSINESS looked different. And this past year … well, we’ve all had to adjust to some things.

Some of the things we’ve all adjusted to were the CARES Act, the second stimulus … and (coming soon) new tax code adjustments and regulations from the Biden administration.

This is going to be an interesting few years … and it pays to have someone in your corner who is paying attention to those things that you cannot.

It’s a large part of my job to work with Los Angeles business owners by “picking up the pieces” of their finances, and unfortunately, it’s often too late to have done any good.

Of course, we work with plenty of thriving businesses by helping them spot hidden opportunities buried within a mess of data.

That’s because every day my staff and I swim in an ocean of numbers, and we’ve become pretty quick about knowing what’s happening in a business by seeing where the “currents” are leading (if you will).

But often we’re stuck looking historically instead of real-time, because too many East Los Angeles business owners don’t have a system in place for getting those numbers to us quickly. But when they do, we can very quickly know how to help.

So today, I’m laying aside tax issues for a moment to help identify for you some numbers that don’t necessarily show up on balance sheets — and why they’re perhaps even more important than what you see on a P/L statement …

Measuring Key Numbers In Your East Los Angeles Business And Developing Accountability

“You have been blessed with a mind that can direct your actions in any way that you choose.” -Ramon Luis

It’s easy to get lazy when a business can pick the low hanging fruit available in an easy marketplace.

But, that’s not always the case, is it?

Markets shrink, funding dries up, prospects aren’t as easily found, or profitability margins decrease. So what do you do? Many business owners don’t know how to tweak their marketing and sales systems, so they can track the numbers at each step in the sales process and grow in new directions.

I have seen (in several industries) that the businesses who create a culture of accountability, have weekly sales meetings, track their numbers, and hold team members accountable, are successful … while those that guess and “assume” are usually out of business. It’s just a matter of time.

The key is knowing the numbers — what is the average expected result, and how you are measuring up against that result for each step in the process. This is where accountability starts.

But many people don’t want to track the numbers , because they might have to admit that they aren’t doing their job and letting their teammates down. Others simply do not have the systems or do not understand how to track those numbers or understand the benchmarks of the average business, the good business — and the great business.

Many self-employed business owners just feel what they are doing is “working” without having tested it or tracking where they are at. Sadly, this reflects a naivete that will eventually bite you in the rear end.

Unless you have completed valid measurements and received statistically reliable results, you don’t have any idea whether you are improving or going backwards.

Especially in a crazy lockdown economy, it’s important to get ahead of the curve and not rely on lazy systems for your business.

So, here is the cold, hard truth: if you don’t know how to test scientifically — or if you do know but you think it’s not necessary — your business is on the slow road towards oblivion like the ones mentioned in the beginning of this article who couldn’t see the trends coming.

Here are the sort of things you should be watching…

If you want to develop business mastery, it starts with expertise in direct marketing and sales. And that means establishing the ability to measure the following factors and develop accountability around them:

Statistically valid testing at each stage of the sales process
Structuring price, term, refund, and premium tests for profit — and what works
Determining the true lifetime value of every new customer
Calculating “allowable acquisition costs” (what you can spend to get a customer)
Measuring responsiveness by advertising source
Identifying the “doubling date” or “half-life” of a new offer or customer
When is the right time to purge unproductive prospects and staff
How do you identify opportunities for multiple streams of revenue within your business (the numbers should tell you)

If you don’t have the ability to measure these areas in your East Los Angeles business — or if your key people cannot — consider your business to be in trouble.

That being said, these are the sorts of conversations we love to have with you. We’d love to be a resource, and to help you see the opportunities — and the traps — within your business.

We’re here to help. We offer services beyond tax preparation and basic bookkeeping. Our Outsourced CFO service has helped businesses turn around a slowly sinking ship to one that is thriving. You can book a business consultation here:
https://calendly.com/uplevelservices/business-consultation

I’m grateful for our partnership and for your referrals.

Warmly,

Chris Gelfuso
 (562) 259-7777 
 UpLevel Business Services 

Chris Gelfuso’s System To Turn Upset Clients Into Happy Clients

Fri, 06 Feb 2026 11:23:49 GMT

I am simultaneously eager while also being slightly horrified that tax season has officially begun.

Horrified, simply because the IRS has been significantly behind the 8-ball this year, and I still can’t believe that we’re already halfway through February 2021.

EAGER … well, because there are so many new credits available to East Los Angeles business owners this year, and I’m pretty thrilled about the opportunity to save YOU some money on your tax obligations.

That said, the newest round of PPP loans have been plagued by delays and confusion, and while there are fantastical rumors of the next round of stimulus … I’ll believe it when I see it.

And it might not be as weighted to SMB owners as previous rounds have been. We’ll keep you posted.

This has been an interesting year (to say the least). Even in the middle of the intensity of the busy tax filing season, we can occasionally become the target for somebody’s frustration.

Over the years, and especially when things are busy and stressful, we’ve had to learn how to best handle matters when a Los Angeles client is becoming (for some reason or another) very upset.

Again, this is rare — but in some cases, the client displaces their anger towards the IRS and puts it into their interactions with us. (“No, John, we actually aren’t the ones who are sending you all of that audit correspondence. And no we cannot control how fast the IRS processes your refund. That would be the nice people at the Department of Treasury.”)

However, what we’ve discovered is that when we handle it rightly, we can leave upset clients even happier with us than even some of our most “reliable” and happy clients.

And I should hasten to add that “John” is a fictional name, and we wouldn’t ever be as rude as what I just typed up there. ��

No, we have tried to train our people with an actual plan for handling such matters, so that in the rare instance it does occur, we handle things properly.

Chris Gelfuso’s System To Turn Upset Clients Into Happy Clients

“Always forgive your enemies; nothing annoys them so much.” -Oscar Wilde

In ANY East Los Angeles business it is inevitable that there will be an instance of misplaced expectations between the customer and business.

And you can choose to allow these interactions to happen at random, trusting in the emotional competency of your staff … or, well, you can develop procedures that will make things right and do so almost every time.

We came across a simple system years ago that I’ll share with you now — because no matter what level of frustration comes forth, this is truly the best way to regain happy clients.

It can be summarized by the acronym “HEAR”…

1) Hear the customer and don’t interrupt.

You don’t interrupt for two reasons:

A. It’s rude to interrupt

B. When people are upset they practice what they are going to say. And they practice it from the beginning. If you interrupt, they are going to start all over again and go off script.

So … don’t interrupt. Obviously, if the client is getting loud and unruly you may need to quietly interrupt. But, in almost all cases, don’t.

2) Mirror back (Empathize) with something like:

“I can understand why you’re upset. I would be upset too.” Or, “I’m really sorry that happened to you.”

3) Ask: “What can I do to make this right?”

It doesn’t get much easier than that. Often, you won’t even have to ask the question because it’s pretty obvious what needs to be done. What’s most important in this step is that the attitude is right. Empathy is everything!

4) Resolve – Unless the request is absolutely ridiculous, DO IT!

What’s so great about this approach (and this has been studied, proven, and established with myriad scholarly studies): Often you leave the East Los Angeles customer even HAPPIER with you than before the problem occurred!

Yes, that’s actually a likely scenario because they will appreciate how you bent over backwards to make them happy again.

When you put in place a regularized plan, good things happen.

We’re here to help. Let me know if you have any questions. Use this:

https://calendly.com/uplevelservices/business-consultation

I’m grateful for our partnership and for your referrals.

Warmly,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

How East Los Angeles Small Businesses Should Handle A Crazy Customer

Fri, 06 Feb 2026 11:11:28 GMT

We’re keeping our powder dry over here at Uplevel Business Services, as it relates to the “American Rescue Plan” proposed by Biden. There’s plenty of talk about it … but as of yet, nothing has passed.

I prefer to live in the world of what *is* — instead of speculation.

When something gets passed, I’ll have more to say to my Los Angeles small business tax clients.

In the meantime … it’s tax time.

If you need to get on our calendar, NOW would be a good time to do so:

https://calendly.com/uplevelservices/business-consultation

The March 15th deadline for S Corps and Partnerships is coming, and while extension is always an option … it would feel great to get things handled. Clean up your 2020 books, and let us dive in on your behalf if we are not already your bookkeeper.

Now … last week I wrote to you about some of those struggles, specifically as to when you and your team are dealing with angry customers over some sort of problem.

And I gave you a framework for that which involves hearing the customer and making things right.

However … sometimes that’s actually not enough because you are dealing with a customer who has completely lost control.

(Sadly, I’ve heard from some East Los Angeles business owner clients who deal with a large volume of customers that this kind of behavior has increased over recent years; which I find concerning for our culture.)

So, here are some ideas for that particular circumstance…

How East Los Angeles Small Businesses Should Handle A Crazy Customer

“Being deeply loved by someone gives you strength, while loving someone deeply gives you courage.” – Lao Tzu

Last week, I wrote about handling upset customers, and I laid out a simple four-step method:

Hear the customer and don’t interrupt.
Mirror back (empathize) with something like: “I can understand why you’re upset. I would be upset too.” Or, “I’m really sorry that happened to you.”
Ask: “What can I do to make this right?”
Resolve – Unless the request is absolutely ridiculous, DO IT!

But what happens if the customer in your Los Angeles business is completely ridiculous?

It starts here: as the owner or general manager of the business you’ll need to decide just how much empowerment you’ll give your staff to resolve an issue.

Let’s assume you have 3 levels of personnel in your business — front line, manager, and you. You might give the front line person the authority to give $100 worth of satisfaction (credit, whatever) when the customer isn’t just being ridiculous — and up to a $50 credit even if the request is ridiculous.

You might then give the manager the authority to give up to a $300 credit even if the customer is ridiculous — and a $1,000 credit otherwise.

Notice that the ridiculous requests still get handled, just … not as generously.

Credits over this amount may need your personal approval. You’ll need to determine where these levels are and put them in writing . But just as important as where the levels are, is how everyone is trained to handle the ridiculous customer.

If your people think the client is being ridiculous, or the amount is more than they are comfortable with, they should be trained to pleasantly stall for time and refer it to you later with something like, “I’m sorry, I’ll need to talk with my supervisor about this. I’m sure you’ll be hearing back before noon tomorrow. And if we can’t, I’ll be sure to call you.” Then be absolutely certain to get back to the client before your associate said you would.

When you have a PLAN in place, you can handle just about anything in your Los Angeles business. No matter how crazy.

We’re here to help. Let me know if you have any business tax or financial questions. Use this:

https://calendly.com/uplevelservices/business-consultation

I’m grateful for our partnership and for your referrals.

Warmly,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Big Employee Retention Credit Update For East Los Angeles Businesses

Fri, 06 Feb 2026 11:04:46 GMT

With the passage of the American Rescue Plan Act AND the CARES Act, the government is seemingly trying to go “full Oprah” with all of the credits, grants, and such that they are slinging out to East Los Angeles small businesses…

And while the media headlines are dominated by stories of the latest 1,400 dollar stimmies, the American Rescue Plan (ARP) Act of 2021 also extends a valuable tax credit for East Los Angeles small businesses impacted by COV-19, the Employee Retention Credit (ERC for short).

And I wanted to write about this today because I’m actually seeing some misinformation being pushed out by some of my fellow accountants, and I thought you should get the good stuff.

If you know anyone who needs assistance, we are tracking all of this for our clients and are taking on new clients even now. Feel free to send people our way, and have them use this to get in touch:

https://calendly.com/uplevelservices/business-consultation

Big Employee Retention Credit Update For East Los Angeles Businesses

“Be so good they can’t ignore you.” – Steve Martin

Changes to the ERC within the American Rescue Plan Act (ARPA) come on the heels of the changes made to it with the Consolidated Appropriations Act (CAA — yes, Congress loves itself some acronyms) back on Dec. 27.

So, while the IRS has not yet released their guidance for 2021 on the Employee Retention Credit, we can go straight to the sources and pick apart the legislation to look for changes compared to the original CARES Act of 2020.

Specifically, how it affects YOU, and your East Los Angeles business.

What exactly is the Employee Retention Credit (ERC)? In short, the ERC is a refundable tax credit on the employer share of Social Security taxes that your business pays if you’ve been impacted by local government shutdown orders related to the pandemic, but choose to keep your employees on payroll instead of laying them off.

Basically, this tax credit is a “thank you” from Uncle Sam to you, the East Los Angeles business owner, for not shoving your employees out the airlock and onto unemployment.

Throughout 2020, one of the issues with the ERC was that you could not claim the credit if you had also received a PPP loan. The CAA (in December) retroactively fixed this issue. You still cannot “double dip” and claim the ERC for payroll periods that were paid with PPP loan proceeds, but you can now claim the ERC for other payroll periods that weren’t funded with PPP loan monies. For example, if you pay your employees monthly and used PPP funding to make payroll for May and June 2020, then you cannot claim the ERC for those months on your second quarter payroll tax return, Form 941. However, you can claim the ERC for the payroll periods from March 13, 2020 through April 30, 2020, and then again from July 1, 2020 through December 31, 2020.

So if your business obtained a PPP loan in 2020 and thus never claimed the ERC on your quarterly payroll tax returns, it may be worthwhile to amend those tax returns and get a refund on this tax credit.

How much is the ERC? For 2020, eligible employers could receive a tax credit of up to 50% of qualified wages paid, maxing out at 5,000 dollars, for each full-time employee kept on payroll for the entire period between March 13 and December 31. For 2021, this has been drastically expanded, all the way up to 70% of qualified wages paid, maxing out at 7,000 dollars per employee, per calendar quarter . While the CAA had expanded and extended these provisions only through June 30, 2021, the ARP picks up the credit for quarters after June 30, through the end of 2021.

In other words, while the maximum credit for the entirety of 2020 was only 5,000 dollars per employee, the maximum credit for all of 2021 is 28,000 dollars per employee.

Who is eligible for the ERC?

Here’s probably the biggest whammy when it comes to claiming this tax credit.

In order to be eligible, your business operations need to be impacted by public health orders limiting your ability to do business. In other words, your business must have been forced to close or reduce capacity due to state or local mandates related to COVID-19. Alternatively, if your business experienced at least a 20% decline for the quarter, compared to the same quarter in 2019, then you are also eligible.

This is a significant change from the original CARES Act, which required a 50% decline in revenue.

Last thing on eligibility: For 2020, there was a 100-employee threshold that was important to the eligible wages that could apply to the credit. For 2021, this threshold has been increased all the way up to 500 employees. So if your business has more than 100 employees, be sure to add your Congress-critter to your 2021 holiday card list.

In addition to all this, there are special rules relating to East Los Angeles businesses that weren’t started until 2020, seasonal employers, tax-exempt non-profit organizations, and the application of sick and family leave credits.

If you have any of these special circumstances, we definitely need to have a conversation right away to get you the maximum benefit from this tax credit.

So if you would like to review your 2020 quarterly payroll tax returns, or know another business owner that could also benefit from possibly amending those returns, let’s schedule a chat:

https://calendly.com/uplevelservices/business-consultation

We’re here for you.

Warmly,

Chris Gelfuso

Your East Los Angeles Business Better Have Learned These Small Business Tips…

Fri, 06 Feb 2026 10:47:29 GMT

The return of March Madness this past week was a big reminder of everything that has happened in just one year. In my opinion, it was the canceling of this event in 2020 that made the entire nation (including those of us in East Los Angeles to) sit up and take notice that this would not be a normal year.

And, of course, the ensuing economic fallout has swept the country. You know all of this, and I’ve been writing about how to navigate it.

Today, let’s reach for some small business tips you should be taking away from this season.

Because despite billions of dollars in federal aid, tens of thousands of businesses in America have disappeared…never to return. At the same time, thousands of new businesses have emerged, and quite a few businesses (old and new) are thriving. And that’s something we’ve seen in Los Angeles as well.

This past year has forever changed how we do business. Even with the president’s goal of a return to some semblance of “normal” by July, the fact of the matter is that “normal” going forward will be very different than what it used to be.

As East Los Angeles business owners, we always need to be ready to adapt to changing times — this time around change just happened to come … faster.

So, what should we do about this? That’s my subject today.

Before I get there, a few notes:

If you have not yet applied for a PPP, the window for this program (both first and second draw) is rapidly closing. There are new calculations for “Schedule C” businesses (i.e. independent contractors) that can make this a very lucrative program for you in Los Angeles. Get this done!
If you have employees, the Employee Retention Credit program is also potentially very powerful. This is available to you if you saw a 20% revenue dip over a quarter OR if your business has been directly impacted by government shutdowns. We are working diligently on these for our clients. Let us know if you want to discuss.

https://calendly.com/uplevelservices/business-consultation

Let’s jump into some small business tips from 2020, shall we

Your East Los Angeles Business Better Have Learned These Small Business Tips…

“Your talent determines what you can do. Your motivation determines how much you’re willing to do. Your attitude determines how well you do it.” – Lou Holtz

One year into this pandemic season and many pixels have been spilled by all of the think piece articles over it. But for East Los Angeles businesses, there really are a few small business tips that you MUST come away with.

So, let’s dive right into these lessons for any business from this wild season…

Small Business Tips #1 Establish and maintain a reserve of operating capital.

Just like every family needs an emergency fund of at least 3 months of living expenses, so too should every Los Angeles business have a working capital reserve. In my years of working with small businesses in East Los Angeles, it’s rare to see such reserves. When you operate on tight margins, it can be difficult to establish such a reserve, but as we saw at the start of the pandemic, it can make the difference between staying in business in trying times versus closing the doors forever.

If you don’t currently have such a reserve, there are still opportunities available within the scope of federal relief programs to get some funding for your East Los Angeles business. If you have not yet applied for a PPP loan, for example, there is still currently about $100 billion in funding that the SBA has not yet allocated. While Congress is considering extending the program to May 31, the current deadline for applying is March 31.

Whether you would be looking at a first draw or second draw PPP loan for your Los Angeles business, and whether you desperately need the capital right now or not, the fact of the matter is that these 1% loans are an amazing opportunity to obtain working capital and increase your company’s resilience to economic events

Small Business Tips #2 Critically evaluate your need for physical office space.

While the work from home trend has been slowly growing for over 20 years, the pandemic accelerated the trend by at least a decade, overnight. This means an incredible opportunity to reduce your office space costs, even if you’re in a type of business that requires physical space. Since lease expenses commonly account for 5 to 15 percent of a business’ expenses, saving on this cost can be substantial to surviving economic downturns. This means you could be an operating business in East Los Angeles but instead of being tied to a physical location, you would have the freedom (and reduced cost) that a virtual business affords. Sounds nice, right?

For service businesses, think about how much office space you actually need. If your whole team can work remotely, maybe you don’t even need a dedicated space in Los Angeles. Maybe you can get by just fine with a virtual office or co-working membership that gives access to conference rooms as needed.

For retail businesses, this is obviously a bit trickier. If you operate a East Los Angeles restaurant, perhaps you’ve switched primarily to takeout at this time. Think about the likelihood of that continuing in future years, and how that affects the amount of dining room space you actually need for patrons.

If you run a store in Los Angeles selling physical merchandise, you obviously need some square footage. But do you need back-office space for administrative staff, or can they work from home? What about inventory storage? Can you find a cheaper off-site storage space?

And… don’t forget… with lots of tenants forced out of business this past year, there are some great deals on commercial real estate leases in Los Angeles. If your lease is up for renewal, think about getting into a more affordable location.

And even if your lease isn’t up for renewal, why not ask your landlord for a rent rate reduction? A lot of commercial landlords would rather give you a discount than lose you as a tenant entirely, which means lowering your expenses, which means better things ahead.

Small Business Tips #3 Embrace the digital.

The past year has been kind of a gut-punch to any Luddites that are still in business. Small businesses with tech-centric processes were clearly able to pivot to the “COVID economy” way faster and more seamlessly than other businesses.

For service businesses, the bulk of interaction can go totally digital. Even in East Los Angelesretail businesses can do most of their sales and customer service virtually.

With all of the stay-at home mandates, people have really started to appreciate things going digital because now they don’t have to take the time to physically go to the store for small things. Depending on the nature of your business, offering value-added services like pick-up and delivery can not only boost business but also help in reducing the need for square footage in Los Angeles.

The change train is a way of life, and this train is chugging faster than ever right now. Making sure your business doesn’t miss that train is no easy task, but we’re here to make sure you get on it.

Whether you need help with securing working capital, reducing expenses, or evaluating digital solutions, we’re here for you.

Let’s talk about how we can help: https://calendly.com/uplevelservices/business-consultation

Warmly,

Chris Gelfuso

EIDL Updates For East Los Angeles Business Owners

Fri, 06 Feb 2026 10:33:27 GMT

With all the floods, fires, hurricanes, and other events that happened in 2019, it turned out to have been a very expensive year for natural disasters.

Then…2020 rolled in and said, “Wait until you see what I’ve got!”

For decades, a little-known federal loan program administered by the Small Business Administration (SBA) provided short-term working capital to small businesses impacted by such natural disasters. During the government’s 2019 fiscal year, the SBA issued nearly 800 million in disaster loans to small businesses. However, in 2020 the SBA issued 191 billion in disaster loans to small businesses.

Just a teeny, tiny increase.

And they’re still not done .. and there are new things you should know.

Even though we’re knee deep in end-of-quarter matters and all of the various East Los Angeles business tax work … I wanted to write this quick summary for you so that you would know when it was available during this very unusual stimulus season.

As usual, we’re right here for you: http://www.temp-uplevelservices.tk/contact

EIDL Updates For East Los Angeles Business Owners

“When I hear somebody sigh, Life is hard, I am always tempted to ask, ‘Compared to what?’” -Sydney Harris

While dwarfed by the 525 billion loaned out under the shiny new PPP loan program, the Economic Injury Disaster Loan (EIDL, pronounced “idle” by those in the know) program provides a critical lifeline to Los Angeles businesses that need it most.

Unfortunately, the SBA just wasn’t equipped to suddenly go from issuing 42,000 disaster loans in a single year to 3.6 million of them. The sudden deluge of loan applications brought SBA computer systems to a screeching halt, forcing loan processors to work exhaustingly long hours and leaving desperate small business owners incredibly frustrated.

To top it all off, the SBA literally had just a single weekend to implement a new addition to the existing EIDL program that had been bolted on via the CARES Act. The new addition? An advance of up to $10,000 against the EIDL that wouldn’t need to be paid back…effectively a government grant.

With a massive logjam of loan applications piling in, the SBA was afraid of running out of money for the program.

So … the SBA made two decisions that quickly drew the ire of both business owners and Senators.

SBA Decision 1: They capped the $10,000 EIDL grants at $1,000 per employee of the business. Many in Congress were outraged at this, stating it was not the Congressional intent for there to be such a limit. In fact, they accused the SBA of simply making this up, since no language like that exists in the CARES Act legislation.

SBA Decision 2: The SBA arbitrarily decided to cap each EIDL at $150,000 or six months of working capital , whichever was less. Under the existing EIDL guidelines (last revised in 2018), the SBA is supposed to immediately provide disaster loans to affected businesses… loans which cover up to four months of working capital or $300,000, whichever is less. This Phase I loan, as it’s called, doesn’t require proof of economic injury. Phase II loans, which incur greater scrutiny, can then be issued for up to $2 million.

When you’re suddenly unable to operate your East Los Angeles business, but still have expenses to pay, and there is no end in sight to the specific disaster you’re facing… Well, you’re probably going to get a little peeved about that $150,000 cap.

Hearing the outcry, and flush with new funding from Congress, the SBA last week announced that they would be lifting that six month or $150,000 cap .

Effective immediately, an EIDL can now be granted to cover up to 24 months of working capital up to a maximum of $500,000. Still a wee bit short of the old $2 million limit, but still amazing news if your East Los Angeles business needs the money to survive.

If you haven’t yet applied for an EIDL, or your loan application got lost in the shuffle last year, it’s a program worth revisiting. The loans are issued for a 30-year term and come with an attractive interest rate of just 3.75%. For non-profit organizations, the rate is even better, at just 2.75%.

In addition, you won’t have to start making payments on the loan until 2022. Any EIDL issued in calendar year 2020 won’t require a first payment until 24 months after the date the loan was issued. For loans issued this year, you won’t need to start making payments for 18 months. If you have an EIDL issued prior to 2020 – e.g., not because of COV-19 – then you get a payment holiday through March 31, 2022.

Sadly, interest still accrues daily during these payment deferrals.

So far in 2021, the program is still going strong because the SBA has already issued over $10 billion in new disaster loans to over 100,000 small businesses. Because of technology improvements and the issuance of two contracts to outside vendors to help with loan processing, the SBA’s capacity to process loan applications now stands at over 10,000 per day. This is a huge change from the 900 per day limit that caused so much aggravation a year ago.

PPP Update

Before signing off, I would be remiss if I didn’t mention important news on the EIDL’s more popular second cousin, the PPP loan. Last week, the Senate voted to pass the PPP Extension Act of 2021. This legislation extends the deadline to apply for a PPP loan by an extra 60 days. Thus, you now have until May 31 to apply for your PPP loan, be it first or second draw. Plus, the law gives the SBA until June 30 to actually process these new applications, instead of a “too bad, so sad” processing deadline that was the same as the application deadline.

If you haven’t yet applied for your EIDL, first PPP, or second PPP loan, now is the time to do so. These programs are there to help struggling East Los Angeles small businesses. If you need assistance organizing your records in support of your EIDL or PPP application, we’re here to help:

http://www.temp-uplevelservices.tk/contact

We’re in your corner…

Warmly,

Chris Gelfuso

How Your East Los Angeles Business Can Fight Inflation

Fri, 06 Feb 2026 10:31:11 GMT

Whether you like it or not, you’ve most likely found yourself in a fight against inflation. Somebody hikes prices on your supplier and suddenly your supplier has no choice but to increase the price on you. Then you have no choice but to raise the price on your customer – who (even if they don’t tell you) notices … you can depend on that.

Inflation is like that dung they say always rolls downhill — except the prices you pay go in the other direction. You don’t like charging your valued East Los Angeles customers more… but what other choice do you have?

Maybe you can’t break this cycle yourself, but you can soften the blow.

And I have ideas for you today.

But before I get there, let’s make SURE that your books are in order and that you are making wise year-end choices — i.e. accelerating or decelerating revenue and costs (dependent upon your tax situation) and more.

If you want to get ahead of that stuff before it’s too late, find us here: uplevelservices.com/contact/schedule-an-appointment/

And once you’ve done so, come right back here so we can talk about pushing against the inflationary tidal wave.

How Your East Los Angeles Business Can Fight Inflation

“It’s not what you pay a man but what he costs you that counts.” – Will Rogers

As you know if you’ve had to shell out for nearly anything lately, inflation is on the rise. Of course, broadly speaking, inflation is simply costs going up. And this can be driven by a number of dynamics, but one of the most common is supply and demand. Well, we still have enough demand to go around — but in many areas, not enough supply…

And so we have inflation occurring – more than 6% year over year. The U.S. Bureau of Labor Statistics says that inflation accelerated last March through September worse than any time in 2020. And it’s the worst year-over-year inflation rate in 30 years.

Let’s hope inflation doesn’t go much higher. We can hope, can’t we?

Still, there’s no way this doesn’t sting small businesses like yours. According to a recent survey , more than four out of five small businesses have had to increase prices – and a good chunk of their customer base is complaining even as profit margins shrink for almost half the companies responding.

Not good at all – and not getting better any time soon, at least as far as anybody can predict. So what can you do?

Your best (and quickest) moves

One common-sense response to inflation: Save money where you can.

Fight Inflation Move #1 – Reduce inventory: What you sell is more than the lifeblood of your East Los Angeles business – it’s probably also one of your biggest expenses. Yet think about it. Chances are good that a lot of your revenue comes from a relatively few number of items in your inventory.

Try classifying your inventory into three groups based on their value to your business. The “A” group includes your biggest moneymakers, the “B” group is somewhere in the middle, and “C” items make you the least.

Once you’ve figured this out, closely watch the supply chain, especially on your A items. If your suppliers are getting prone to longer or fluctuating lead times, stock up on their items when you can. And if you’re finding a lot of items in your “C” group, maybe consider ditching a few of them.

Fight Inflation Move #2 – Improve your expense tracking: This not only helps you see where your money goes, but it also keeps you out of trouble with the IRS and makes sure you take every tax deduction you’ve got coming.

Check with us if you’d like specific opinions on expense-tracking software, but generally, the price of this software will depend on the size of your company.

Whatever you pick, scanning receipts is bound to be better than rooting through your shoebox – and it’ll make a big difference in your annual costs.

Fight Inflation Move #3 – Fine-tune your marketing: It’s probably the worst move in the business book to give up trying to acquire new customers when times get tough – thinking like that just makes a tailspin spin out faster. Still, I bet your marketing has a lot of parts that could do with some tinkering. Too often in small businesses, marketing is launch-and-forget.

Make the time to take a hard look at your advertisements, for example. Which ones pull in the customers? Which ones don’t? Work on (or just drop) the clunkers. After all, you’re paying good money for those.

And remember: Keeping customers you already have is always cheaper than advertising to bring in new ones. Customer loyalty also becomes even more important during inflation.

Fight Inflation Move #4 – Move to a cheaper workspace: The past couple of years have been a gut reno for the work world. For a lot of workers, the office is now their dining room table. Will this continue?

Who knows … but do you really need to keep shelling out for all those square feet of office space? Don’t forget the price tag of furniture, utilities, and those mountains of Keurig cups.

Cheaper alternatives can include co-working spaces, either for-hire or through a partnership with another local East Los Angeles business. Ask around.

Inflation sure isn’t fun, but it won’t last forever (it never has). We’re in this with you and your business, and if we can help at all, please reach out. Stay safe.

uplevelservices.com/contact/schedule-an-appointment/

To a happy and prosperous year-end…

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

A Few Helpful Tips for East Los Angeles Businesses to Win at Controlling Costs

Fri, 06 Feb 2026 10:23:31 GMT

So … I’m not sure if you knew this.

Apparently, running a business is expensive. And controlling costs can be daunting.

But despite whatever you might see from those gurus who are posing by their Lamborghinis in the Facebook ads … even the leanest East Los Angeles businesses are never 100% profit.

Trust me — I’ve seen it all.

Which is why I wanted to take a moment, even here during this most insane of all tax seasons, to write about this for you.

On that note, I might as well get these out of the way right now:

The IRS did get their act together and extend the IRA and HSA contribution deadline to May 17th. Let us rejoice.
Estimated payments for Q1 are still due April 15th. Yes, yes … this is a bit of a pain, and we are working very hard to get the information to those Los Angeles clients who are affected. My suggestion (if you still don’t have clarity on your return): Pay what you paid last year if your income was similar. We may be able to give you better figures, but as long as you make a payment that is close, we can clean things up in future quarters and minimize any penalties, etc.

Alright … let’s get to the fun stuff (at least for the penny-watching accountant that resides within my soul)…

A Few Helpful Tips for East Los Angeles Businesses to Win at Controlling Costs

“You may be disappointed if you fail, but you are doomed if you don’t try.” – Beverly Sill

Depending on the type of business you run in East Los Angeles, you have a myriad of things you need to pay for to stay in business from rent to office supplies to payroll to inventory (not to mention all those pesky taxes).

When a business is brand new, most business owners go over the top controlling costs. But over time, they tend to loosen their grip on such things and inevitably experience “cost creep.” Sound familiar?

Every dollar you spend on a business expense means one less dollar in profit for your business. So, it’s a good idea to periodically check in on your expenses to make sure you’re controlling costs where needed.

But where do you start?

Looking at your income statement may just give you a headache. Plus, that P&L is a summary of categorized expenses and doesn’t tell the full story about individual costs wracked up throughout the year.

Rather than starting with staring at financial statements or bank records, it might be easier (and less stressful) to consider specific relationships that make your business run.

Start with your suppliers. As a business manager, your job is to make sure you have an adequate inventory of goods to sell or enough supplies on hand to deliver the services you provide. Managing your own supply chain is critical to the success of your Los Angeles business. Any interruption in that supply chain can have disastrous consequences, kind of like a tiny little boat gumming up the Suez Canal for a week.

And since your supply costs are probably one of your largest expenses, this is a great place to start with controlling costs in your East Los Angeles business.

Ideally, you should spread vendor relationships a little bit, so that you have a diverse supply chain. But, you don’t want to spread the love between too many suppliers because your order volume will end up being too low to receive the best pricing from each vendor. In other words, you don’t want just one single source for all your widgets, but you also don’t want a dozen different suppliers either.

When was the last time you reviewed your suppliers and their pricing? I’d suggest making this an annual exercise.

Ask them questions like:

How can we get better pricing from you?
Are there other sizes, colors, styles we can get better pricing on?
If we order larger quantities at reduced intervals, can we get better pricing?
Is there a different freight option that will reduce delivery costs?
Do you offer different payment terms that might save us some money?

Even if you have a great working relationship with vendors both inside and outside of East Los Angeles, it never hurts to ask these types of questions. The sales reps understand that you’re running a business and controlling costs is a priority, so they won’t get offended when you ask your question.

Take a look at your technology costs. Tech is all around us, so it’s no longer a question of whether or not technology is used in your Los Angeles business, but rather what tech and to what extent. If your business operation relies on cutting edge technology, you’re going to have different tech costs than other businesses. Otherwise, there are a variety of helpful ways for controlling costs so they don’t run amok.

Together with your East Los Angeles team and your IT consultant, consider the following:

Do we need to replace an on-site server with a cloud solution (usually costs less)?
Are we operating on a series of old, cobbled together software programs or do we need to implement a newer all-in-one software solution (more cost effective and efficient)?
Are we using automation where we can? Or is there anywhere we can implement modern technology solutions which are capable of high levels of automation (saves time and money)?
If certain hardware is near the end of its useful life, can we purchase incremental upgrades instead of doing “rip and replace” to control expenditures?
If currently leasing items such as computers, printers, and copiers, could it be cheaper to purchase this equipment instead? Or vice versa?

Are there certain basic IT tasks we can train in-house staff on to reduce expensive visits from offsite IT consultants (big savings in the long run)?

Lastly, let’s talk about labor costs. You already know that employees (including sub-contractors) are one of your biggest operating costs.

Controlling costs here can be difficult, because emotions get involved. Your employees can quickly feel like family, so making any changes can be difficult. This is a harsh reality that too many Los Angeles employers have been forced to deal with… especially last year.

Controlling labor costs isn’t just about wages. There are a host of other costs, such as payroll taxes, health insurance, paid holidays, sick leave, and retirement account contributions. Even if your East Los Angeles business doesn’t offer some of these benefits, the reality is that it’s becoming more and more expensive to hire and retain good people. That’s a cost creep you’re definitely going to have to face sooner or later.

Think outside the proverbial box to control labor costs:

Outsource certain support functions like payroll processing, employee benefits, bookkeeping, and tax matters (we know someone who can help with that).
Let some staff work from home. This is obviously all the rage right now at gigantic corporations, but it can work for small businesses, too. Employees that work from home report being happier and more productive. For you, it means leasing less office space.
As the economy opens back up, really ask yourself whether or not you absolutely need to hire more full-time people. Hiring, in and of itself is expensive and time consuming. Can you train existing staff to do the work instead? Can you use a temp agency for short-term labor on special projects? Can you contract out to another local company? Can you hire a part-time employee and still get a quality person that will do quality work?
When employees ask for wage increases, consider alternatives to straight hourly or salary rate bumps. Is there a performance based bonus structure you can implement instead? Is there some sort of commission or profit sharing structure you can create to reward employees when the business is doing better without creating permanent fixed costs?
If your business is seasonal, consider offering employees short periods of time off at reduced pay. For example, offer a “spring break” week if things really slow down for you this month. This can save on labor costs without forcing good employees to leave, which would ultimately cost you more in the long run to replace them.

Controlling costs is part of running a East Los Angeles business. Some expenses are easier to control than others, and some expenses, such as those related to employees, can be downright uncomfortable to face.

We work with all kinds of Los Angeles businesses and have seen all kinds of out of control business expenses.

If you have a strange feeling that controlling costs is something you’ve been struggling with, but aren’t exactly sure what’s out of line and what’s not, let’s discuss it:

https://calendly.com/uplevelservices/business-consultation

We’re here to help. (Especially now.)

Warmly,

Chris Gelfuso

Commercial Real Estate Opportunities In East Los Angeles NOW

Fri, 06 Feb 2026 10:12:28 GMT

As a East Los Angeles small business owner, you’re no doubt fully aware of the importance of your business location. This is especially the case if you have a retail store or deliver a service where East Los Angeles customers come to you — you need a location with ease of access and foot traffic.

Even if you just need an office from which your staff can work – perhaps a blasphemous concept in the current work-from-home era – your choice of office location and amenities is an important decision.

Beyond just location considerations, you are also concerned with the financial aspects of this decision.

And this, of course, is right in my wheelhouse. So let’s explore these financial considerations.

But before I get there, a few quick tax things:

If you are subject to estimated tax payments (you should know who you are), that deadline was NOT extended. Your first quarter estimated taxes are due THIS Thursday April 15th.

Yep, this is just one of the multiplicity of things that has made this tax season … special.

The easiest option at this point, if you have not paid them, is to go to the IRS website and pay directly. Look at your most recent tax return and divide the total amount of tax by four and pay that amount. We can help you calculate the remaining three quarterly estimated payments for tax year 2021 after we file your 2020 return.

Please do be patient with us in communication — we have been, and continue to be, flooded with inquiries because of the confusing nature of these shifting deadlines this year. But this is always the case (despite this year being a little “extra”) … and we have prepared for it, and are in your corner.

Commercial Real Estate Opportunities In East Los Angeles NOW

“You may be disappointed if you fail, but you are doomed if you don’t try.” – Beverly Sill

Before you dive into the current opportunities for your working space, let’s get our facts right.

Commercial leases are a completely different animal than their residential counterparts. If you’ve ever rented a home or apartment, then you’re familiar with the basics: You pay the rent every month, don’t trash the place, and you get to live there. Easy peasy.

Commercial leases can be that simple, but they rarely are. A commercial lease will have the common things you’d expect, such as the duration of the lease and the things you can and cannot do on the premises. The financial terms, however, might be completely foreign to you.

The simplest type of commercial lease is a gross lease , which is most similar to a residential lease. In this type of arrangement, your landlord will pay most of the costs associated with maintaining the property. They will take care of the maintenance, pay the property taxes, and may even pay some or all of the utilities. These types of leases are nice and simple for us as East Los Angeles business owners. Unfortunately, they are the rarest breed of commercial lease.

A net lease gets much more complicated , and is the most common type of arrangement that you’ll find. In a net lease, you’ll pay a set amount of rent each month to occupy the space, but you’ll also be required to pay some of the variable costs of keeping up the property. For example, you might be required to pay all or part of the property taxes, insurance, and maintenance. You’ll definitely be on the hook for all of the utilities, too.

A common term that you’ll hear in commercial real estate is triple net lease. This may be indicated by the initials NNN in an ad for the space. This is a net lease in which the tenant is expected to pay everything. The three N’s correlate to property tax, insurance, and maintenance.

While more complex, a net lease gives you the opportunity to know and review the operating expenses of the property, and negotiate with the landlord. During challenging economic times, when landlords are a bit more under the gun, they are more likely to be open to negotiating the items you pay. This way, you may end up paying less than on a gross lease.

Should I move my existing business premises?

A year ago, millions of businesses across the country were closing their doors. Many of them will never reopen. This has left commercial real estate landlords in a pinch, and desperate for a paying tenant.

This creates opportunity for you.

If your current lease is up and you’re open to moving, or you’re just starting your business, right now could be an incredible time to snap up a premium location at a below-premium price. Building owners just want somebody in the space paying rent to cover the costs of running the building or paying the mortgage. Empty space in a commercial real estate building also just doesn’t look good, and can reduce foot traffic due to perception of issues on the property.

Take advantage of this situation by asking about empty spaces that might work for your business. If you happen to know other business owners that have had to vacate their space due to cash flow issues, ask them to put you in touch with their landlord, as you might be able to take over a lease under good terms. This becomes win-win for the landlord and the other (or perhaps “former”) business owner.

If your business has been in the same location for a long time, and you’re well-known for being in that location, you may need to give pause to the thought of moving. If money is tight and getting tighter, moving may be the smart thing to do even if you’re well established in an iconic location. This is a conversation I’d be more than happy to have with you.

Should I buy or lease my business location?

Now might be a good time to consider buying your business location, if you’re in a financial position to do so. Leasing obviously gives you a lot more flexibility for your future, but if business is going well and you can see yourself being in the same location forever, now might be a good time to buy. If your current landlord is interested in selling their property, in order to de-risk their own portfolio in the current economic situation, would you be willing to buy?

Owning can make financial sense in the long run. You would get to benefit from the appreciation on the property yourself, rather than paying ever-increasing rents to your landlord. You lock in your base “rent” cost for the entire term of your commercial mortgage, making it easier to plan for the next 5 to 10 years.

Commercial real estate financing is a very different animal than what you’re used to from buying your home, though. Commercial mortgages typically have larger down payment requirements, and loans are generally 10 years or less, with a balloon payment at the end that requires you to either cough up cash or refinance.

The decision to buy a property requires quite a bit of financial analysis. If this is something you’re interested in looking at, let us walk you through the math to determine whether it’s a good idea for you or not. I can also refer you to a Real Estate professional who specializes in commercial properties and loans.

2021! What can I do?

The purple mammoth in the room right now is obviously the economy. If your business is experiencing financial difficulties, and you’re not able to make your current lease payments, talk to your landlord . The worst thing you can do is avoid this conversation. Rather, be up front about the financial realities and see what your landlord can do to work with you.

Your landlord is likely open to modifying your current lease. Consider some common options:

Temporary forgiveness of base rent.
Deferral of rent.
Payment plans for missed rent.
Modification of who pays what on a net lease.
Shorten or lengthen the lease, depending on landlord needs and preferences.
Negotiating a percentage of business sales as payment against lease amounts due.

More than anything else, realize that your East Los Angeles landlord really doesn’t want a property sitting empty. That is the worst possible outcome for them. They don’t want to explain that vacancy to their bank, plus they’d rather have some cashflow coming in to pay expenses instead of a big fat goose egg. So they should be willing to work something out with you.

Whether you’re ready to move, ready to buy, or need to figure out alternative payment arrangements, now is a great time to be doing something with the commercial space that houses your business.

Feel free to schedule a time to discuss this piece of your financial future. Taxation things are very busy right now … but we would love to help our clients make the right decisions here:

https://calendly.com/uplevelservices/business-consultation

We’re here to help. (Especially now.)

Warmly,

Chris Gelfuso

5 Cybersecurity Steps all East Los Angeles Business Owners Should Take

Fri, 06 Feb 2026 09:53:37 GMT

From making sure that nobody is doing Zoom calls in their bathrobe to ensuring that work actually gets done on time, you’ve got a few extra things to worry about as a East Los Angeles business owner these days.

Chief among those new concerns, however, should be cybersecurity.

Cybersecurity steps are one of those painful, annoying topics that nobody wants to think about in a small business environment (kind of like *ahem* taxes and accounting) … but one that rears its head as a terrible, business-killing beast when left unattended.

There’s an entire slew of “information security” concerns that may not have been top of mind back when all the files and sensitive data were locked up nice and tight back at the office, but should be at the forefront now for all Los Angeles business owners.

Before we dive into that, though, a quick reminder on an important business tax deduction…

As your favorite East Los Angeles restaurants re-open, don’t forget that recent stimulus legislation bumps the business meal deduction all the way up to 100% for both takeout meals and meals consumed at the restaurant.

If you’re traveling for business or take a customer or prospect out to eat, that totally counts. What doesn’t count are prepackaged foods, such as prepared sandwiches and wraps, that are purchased from places like Los Angeles convenience stores.

During that customer meeting at your favorite local eatery, let’s delve into some important tips that you should pay attention to before connecting to the restaurant wi-fi (among other things) …

5 Cybersecurity Steps all East Los Angeles Business Owners Should Take

“You may have to fight a battle more than once to win it.” – Margaret Thatcher

Whether your East Los Angeles business is in full-on work-from-home mode, or your business is such that this is a totally foreign concept, the reality is that cybersecurity steps are something you absolutely need to address.

Your office computers, employee laptops and tablets, cloud services (which can be accessed remotely), and even company cell phones all have an insane amount of information on them that hackers would love to get their digital hands on. Along with customer credit card numbers and employee SSN’s and DOB’s, your digital records contain a wealth of valuable information. Even something as seemingly innocuous as customer estimates and invoices can look like hidden treasure to the world’s digital pirates.

Taking basic cybersecurity steps is cheap protection against potentially embarrassing and expensive data breaches.

If you do have employees working remotely, it’s your responsibility to protect customer and employee data. Just like the IRS sets minimum requirements for us to protect YOUR private information, you should also set minimum standards for cybersecurity in your own business.

A recent study by Shred-it (business document destruction company) stated that a whopping 96% of American consumers consider a business’s employees to be the largest risk factor for a data breach. So, how do you put your Los Angeles customers at ease, do the right thing, and help prevent data breaches and ensuing expensive lawsuits?

Step 1: Have a Written Policy

The first of the five cybersecurity steps you need to do in order to protect against data breaches is to have a written policy at your East Los Angeles company about data security. You need to put rules in place that both protect data and prevent your employees from taking shortcuts that put valuable information at risk.

For example, you’ll want a policy that covers minimum password complexity as well as a process in place for ferreting out all those “abc123” and “password” passwords.

Your written cybersecurity policy should outline the basic things your staff should do to keep things secure. Be sure that your policy includes the use of proactive defenses like anti-virus/anti-malware scanners, drive encryption, and software firewalls.

You’ll also want to specify what software programs and apps are okay for your employees to use when accessing company information.

Step 2: Use Secure Connections

Using secure connections is the next one of the cybersecurity steps to take. One of the most common ways that criminals access company data is when employees are using unsecured, public Wi-fi networks, and that includes those in East Los Angeles.

Even if they’re at home, most people don’t properly secure their home routers. It is essential to provide some level of technical support, at company expense (deductible, of course!), to help at-home employees secure their Wi-fi connections.

You should also consider subscribing to a secure VPN service. These services are affordable and provide a secure “tunnel” between an employee’s home internet and your business network. Make sure to choose a service that uses top level encryption across the entire span of that “tunnel.”

Step 3: Use Password Managers

Of the many cybersecurity steps you should take, this might be the most important one across the board.Weak passwords (remember “abc123”?) are everywhere. This tends to be one of the weakest links in cybersecurity, especially for small East Los Angeles businesses. With all the services and software that your business runs on these days, your employees likely have a metric boat load of passwords that they can’t possibly remember.

Which means they are probably “recycling” their passwords. (Yeah, that’s not a good thing.)

While choosing more secure passwords is a good starting point, it may be worth investing in a password manager for every member of your team. Tools like LastPass and 1Password are very affordable and go a long way with helping your employees create secure, unique passwords for all the services they need to access.

Step 4: Use 2-Factor Authentication

Two-factor authentication (or 2FA as the cool kids call it), adds a layer of security on top of passwords. Even if a password gets hacked, 2FA is one of the very difficult cybersecurity steps to hack.

2FA requires that you enter a code to access an online service. This code can be sent as a text message to an approved cell phone or can use a special security fob that shows a number which changes frequently. Some new systems may also use fingerprints or retinal scans to ensure the right person has access to company data.

Step 5: Install the Updates

Have you ever skipped a software update that your computer is demanding that you install? Yeah, so has everybody else.

But you really shouldn’tskip this one of the cybersecurity steps, and neither should your employees.

Keeping software up to date is important for preventing data breaches. These updates frequently eliminate known vulnerabilities in software. The only way you’re protected from certain types of cyberattacks is to close that door by installing the update.

Maintain Security Awareness

While a lot of these techie things may sound overly complicated at first, they become second nature once you and your employees start using them. With proper education, the right policies, and with you setting the example as the owner of the business, your team can easily embrace the basic steps that will prevent the vast majority of data breaches.

From a purely financial perspective, it’s also just cheaper to put these protections in place than it is to defend yourself against a lawsuit in the event of a data breach. So, if nothing else, take these cybersecurity steps because of the money. ��

Warmly,

Chris Gelfuso

The New Stimulus Update and Tax Issues for East Los Angeles Filers

Fri, 06 Feb 2026 09:44:32 GMT

The “American Rescue Plan” has been finalized. And there are things about the new stimulus update our East Los Angeles clients should know.

While I normally write weekly, there is information in this strategy note that you need to know about now that might even impact how you proceed in the following days.

As of this writing, Congress has agreed — but this is so fresh off the presses that many of my industry colleagues are scrambling, and the research services are still compiling all the data. But I felt it important to get ahead of all of that on your behalf.

If you know anyone in Los Angeles who needs assistance, we are tracking all of this for our clients and are taking on new clients even now. Feel free to send people our way, and have them use this to get in touch:

http://www.temp-uplevelservices.tk/contact/schedule-an-appointment/

There is a lot to discuss about the new stimulus update, and I will have more to say early next week, but this is important for you to know about NOW. So let’s dive in…

Stimulus Payments (and how they might impact your tax paperwork)

These are different from previous stimulus programs: $1,400 dollars per taxpayer and dependent (with significant income limitations).

Previously, if you had a child over 16, or an adult dependent, they would not qualify. In this round, you’ll receive a payment for yourself and each dependent — depending on your income.
The “phase out” for this is significant and steep. What this means is that in previous rounds, the phase out was much more gradual. The phase out began at the same numbers (75K for individual, 150K for joint-filed return, and 112,500 for HOH), but they were so gradual that it didn’t significantly impact filing decisions.

Now — you will NOT receive these payments if your income is anything over 80K for individuals or 160K for joint.

How This Might Impact ~ProfileMarketArea~ Taxpayers NOW (Tax Planning)

We want to get you the most out of the new stimulus update as we can. And once the IRS issues you a stimulus payment, it’s yours. TIMING matters, and so might how you file (in certain unusual cases).

TIMING:

If your 2020 income increased versus 2019 …

If it didn’t take you over the phase out thresholds, there is nothing needed for you to think about.
If it brought your AGI above the phaseout thresholds (especially if over the 75K or 160K joint), and you have not filed your return: we will be waiting to file it until after you receive your stimulus.
If for some strange reason you are reading this and you are NOT our client, I urge you NOT to file until you receive payment.
If your increase brought your AGI above these thresholds, and you have already filed … I am sorry �� The IRS goes by the most recently-filed information for these decisions.

Congratulations on your income increase … and let’s work on other ways to reduce your tax obligations in the future.

If your 2020 income decreased versus 2019 …

If your income was already under the phaseout thresholds, you will not be affected — you will receive the stimulus no matter what.
If your income decreased below the thresholds (i.e. your income in 2019 was above 75K or 150K filing joint and now it is below), you do NOT have to rush to get your return in.

The new stimulus update has two phases for distributing payments. In phase 1, the IRS will take the data it already has and pay out of that. If you didn’t file a return in 2019 or 2020, you will not get a stimulus. But fret not … in phase 2, there will be a second date on which the IRS will calculate stimulus payments. This will be for those who had an income decrease. That date will be the earlier of 90 days after the tax deadline day (whatever it might be — more on that later), or September 1.

So as long as we get your taxes filed on time, you WILL get it. You do not have to FILE YOUR TAXES RIGHT NOW. Don’t let any scammy East Los Angeles tax pros or marketers tell you differently. Fortunately, this issue was (miraculously) considered within the text of the bill.

HOW YOU FILE:

In certain odd cases, it might actually make sense to file “married filing separately” for your 2020 taxes even though you will (as a result) pay slightly more in taxes — because by doing so, you will be able to receive a greater stimulus payment. It would then outweigh the greater tax you might pay.

This will not be the case for most of my clients, and it mostly will concern Los Angeles filers whose income hovers around the phaseout thresholds. If this is you, get in touch with us:

http://www.temp-uplevelservices.tk/contact/schedule-an-appointment/

“When Will I Get My Stimulus?”

Unclear, but likely these will begin by the end of this month for those who already are under the thresholds and qualify.

For the rest, it will be after the second phase that I already mentioned.

Unemployment Now (Partially) Non-Taxable (for most)

I already mentioned in a recent post, and it has been confirmed in the the new stimulus update– the first 10,200 of unemployment benefits are untaxable — but only for those whose income is below 150K.

This is a very real benefit for many, probably meaning about 1,500 in savings. But the timing on this will take some time because the IRS will have to issue guidance.

If you know anyone in East Los Angeles who has unemployment who has already filed their return, it is likely that they might have to amend … but not necessarily. We are here to help if you want to make sure:

http://www.temp-uplevelservices.tk/contact/schedule-an-appointment/

There are (obviously) many more elements to the new stimulus update, and I will unpack them in the following weeks.

There are changes to child tax credits, earned income credits, and more. Look out for my update next week on those items.

In the meantime … know that we are in your corner.

(And also, extend us grace as we are handling these matters for a variety of clients, many of whom have very difficult circumstances. We are here to serve, and have prepared for these kinds of legislative curveballs … but they are curveballs nonetheless.)

Warmly,

Chris Gelfuso

5 Helpful Tips for East Los Angeles Businesses To Be More Resilient in Crisis

Fri, 06 Feb 2026 09:27:12 GMT

The overall economy is on a tear right now, but for some businesses, things don’t look so rosy.

By the way, if that is you and your business (not so rosy), there are a multiplicity of grants, tax credits, and very favorable loans available — though doing it properly can be tough to navigate.

Let us help you: https://calendly.com/uplevelservices/business-consultation

According to the latest federal estimates, about 200,000 MORE businesses permanently closed last year than would have in a normal year.

And I sincerely hope that your business is either back open, will be soon, or never fully shut down in the first place.

But regardless of which bucket you fall into, there are a number of “best practices,” which have been put forth by management consultants, business advisors, and those MBA “thought leader” types about how large businesses should be opening back up.

So, I thought it would be useful today to distill some of those lessons down into practical tips for small East Los Angeles businesses to become more resilient in crisis.

A couple quick reminders first…

As of this writing, about $40 billion in PPP loan funding remains available. The application deadline is May 31, but the funding will probably be allocated well before then. If you haven’t yet applied for either first or second draw, be sure to do so. (And as reminder — this is done through a lending institution, like your bank, or Paypal/Kabbage and the like)
New guidance from the IRS last week allows businesses to deduct certain expenses on their 2021 business return that were paid for by PPP loan proceeds — if they weren’t deducted on the 2020 tax return. If you’re one of our Los Angeles friends be sure to discuss this with us to make sure you capture these deductions on your 2021 return when we file it next year.
The IRS is running behind on pulling Q1 estimated tax payments from accounts. Don’t fret if you haven’t seen yours pulled yet through an automatic withdrawal from your bank… they tell us that it’ll all be accounted for, and no penalties, etc. (But, best to keep your powder dry … you know, just in case. We’ll help with that if need be.)

Now, let’s dive into some tips for getting your East Los Angeles business back up to speed as the events of 2020 start to fade into the rear-view mirror…

5 Helpful Tips for East Los Angeles Businesses To Be More Resilient in Crisis

“The future belongs to those who believe in the beauty of their dreams.” – Eleanor Roosevelt

As the economy reopens and things begin to return to normal, one thing is clear: Normal ain’t what it was. I cringe every time I hear the phrase “new normal,” so I won’t use that phrase. Oh, drat, I just did. That was the only time, I promise!

So, as lockdowns are lifted, vaccines are doled out, and people leave their caves to see sunlight for the first time in a year, what can Los Angeles business owners do to not only ease the transition back into business-at-full-speed, but also make your business resilient in crisis?

TIP #1 To Be More Resilient in Crisis: Make a Plan You Can Believe In

We don’t get into politics around here. We understand that everybody has different opinions on various things, and we respect that. Whatever your personal opinion happens to be about various actions over the past year, what’s been done has been done. That’s just the reality of where we are. Thus, your East Los Angeles business re-opening plan has to take that reality into account.

As you re-open your business, expand services, and the like, you need to be comfortable with how you operate. So do your employees and customers. If they don’t feel safe interacting with your business, then employees won’t show up for work, and customers won’t give you business. Be sure to have a rational conversation with your employees about their expectations (and yours) regarding things like disinfecting surfaces, use of PPE (which is tax deductible!), social distancing, and other factors. Everybody should be on the same page, and you can’t get there with your employees if you don’t have the conversation.

Most importantly, don’t ignore your customers. Develop an understanding of what YOUR customers will want your business to look and feel like as things return to normal. This doesn’t even necessarily have to be about whether you require customers to wear masks or not. No, this is about bigger picture things, and I want those in Los Angeles to be bigger picture thinkers.

For example, many consumers have been spoiled by home delivery. This is now a permanent part of the business paradigm. Is this something East Los Angeles customers expect? Can you increase revenue by adding this service if you don’t already have it?

Consider the different products and services that you sell. Will some start to sell again faster than others? For example, it’s a great time to be a homebuilder right now because demand is so high. Figure out what will be in highest demand from your customers, and be prepared to meet that demand with extra inventory or expanded service capability.

If your business requires you or your employees to physically visit Los Angeles job sites, make deliveries, or other on-site services, what are your customer requirements going to be for your staff? Some businesses are mandating that visiting service personnel be vaccinated, for example. You’re going to need to determine how to address this within your own business and with your own staff.

TIP #2 To Be More Resilient in Crisis: Shore Up Your Supply Chain

Sawmill shutdowns (resulting from a combination of government orders and sick employees) have caused the price of lumber to more than triple. Computer chips (and a current shortage of them) needed to make everything from cars to talking children’s toys have caused shortages of other goods and price spikes. One tiny boat plowing into the sand disrupted the global supply of motorcycle parts.

Supply chain disruptions happen all the time. Always have, always will. But as the business norm has shifted in recent years to “just in time” delivery, these little hiccups cause more harm than they used to.

Just because you’re a small East Los Angeles business doesn’t mean you’re immune to them. Several of our clients have already shared such stories with us.

Here are some quick tips to help ensure the survivability of your supply chain:

Have multiple vendors. Never rely on a single source for supplies, materials, or inventory.

Source locally, if possible. In addition to supporting local East Los Angeles businesses, you’ll save on shipping costs and tariffs, and you’ll minimize disruption caused by global incidents.

Expand your own storage. Yes, this can add costs, but it can also prevent disruption. Have enough storage space to maintain a little bit of extra inventory or raw materials to allow your business to operate longer in the event of supply chain problems.

TIP #3 To Be More Resilient in Crisis: Embrace the Digital

Another permanent change to the economy is a greater reliance on all things digital. If you’re a bit of a technophobe, or you know that your business is technologically backwards, it’s time to step up to the plate.

There are certainly some big changes such as some jobs now becoming permanent work-from-home situations. If you have jobs like this in your company, you’ve already had to embrace the change. If not, take the time to evaluate which roles can be performed in this manner, and embrace the change. Some employees may need it, plus it can reduce your costs in other areas, like how much office space you need to lease.

Certain sales and service items are worth moving online also. From scheduling service calls to placing orders to making payments, modern consumers expect these modern digital conveniences – even from the smallest of businesses. If you’re not able to accommodate these consumer sentiments, it’s going to adversely impact your business. This trend started well before this most recent economic crisis; the pandemic merely accelerated and cemented consumer expectations.

TIP #4 To Be More Resilient in Crisis: Create a Disaster Response Plan

Floods, fires, hurricanes, pandemics (…toilet paper shortages). Disasters are simply part of life, and all of my Los Angeles business owner friends need to be prepared for the next one. It’s not a matter of “if,” but “when.”

Nobody wants to think about what happens in a disaster, but thinking about it is exactly how you prepare for it. According to FEMA, more than 40% of local small businesses impacted by a natural disaster never reopen. Reach out to local emergency management agencies and discuss local contingency plans for how they’ll handle disasters that are common here in our area. Use this information to develop your own emergency response plan to ensure the long-term survival of your business.

TIP #5 To Be More Resilient in Crisis: Build a Cash Reserve For Your Business

Most financial planners advise that most individuals have an emergency fund of at least three months of expenses. Business consultants will typically recommend something similar for businesses.

Unfortunately, the majority of businesses never build such a fund. A year ago, most businesses had less than one month’s worth of expenses in the bank. Thus, when the economic bombshell dropped, many businesses were left unable to deal with it.

If you haven’t already, be sure to take advantage of opportunities to pad your bank account from external sources, including:

Paycheck Protection Program (PPP) loans
Economic Injury Disaster Loans (EIDL) directly from the SBA
“Regular” SBA 7(a) loans
State economic development grants

In addition to these external sources, get creative with generating cash flow from within your business. This is an excellent time to hold sales on stagnant inventory, implement new recurring revenue strategies, and offer pre-payment incentives for services.

Also, now might be an excellent time to negotiate credit and payment terms with vendors in order to improve your own cash flow.

Lastly, if you typically extend credit to your customers, you can quickly convert some of those accounts receivable into cash now through a process called factoring. Factoring can be an expensive source of cash, so you may not want to factor all of your receivables. But don’t ignore it as a strategic play for bolstering cash reserves, just in case.

Getting back to normal is a good thing, and we’re all looking forward to it in East Los Angeles. But, we all need to recognize the fact that “normal” isn’t what it once was. It’s a good idea to prepare your business, both financially and otherwise, to operate in this new business environment as the economy reopens. Let’s discuss how to get your business more resilient in crisis:

https://calendly.com/uplevelservices/business-consultation

Warmly,

Chris Gelfuso

What East Los Angeles Business Owners Need to Know About Commercial Real Estate Mortgages

Fri, 06 Feb 2026 09:16:44 GMT

Does the thought of paying rent to your East Los Angeles commercial landlord for eternity make you cringe?

Do you get a little bit of FOMO when you hear stories about other people building empires with real estate?

The decision to purchase your own space from which to operate your East Los Angeles business is a major one. MAJOR.

And one of the biggest complexities of that decision has to do with the vagaries of commercial real estate mortgages.

Before we get into that, we do have a very time-sensitive notice for Southeast Los Angeles County restaurant owners:

THIS WEEK, the SBA opened applications for the Restaurant Revitalization Fund (RRF). This new program provides relief funds for restaurants, bars, and other food and drink establishments that have lost revenue due to the pandemic. To read the SBA program guide, go here .

Please share this helpful info with any East Los Angeles restaurant owners you may know, to make them aware of this program. It is expected that the funds allocated to this program will go quickly, so we want to make sure that all East Los Angeles restaurant and bar owners are aware of it.

Now, let’s explore how to make your dream of owning your office, store, or shop a reality.

What East Los Angeles Business Owners Need to Know About Commercial Real Estate Mortgages

“You just can’t beat the person who won’t give up.” – Babe Ruth

For many people, the American dream includes a cozy home with a manicured lawn, and our home loan system is merrily set up to make this dream a reality for quite a few people.

But for entrepreneurs dreaming of owning their own store, shop, or office location, the dream is a lot murkier. There are quite a few differences between residential mortgages and commercial real estate mortgages, and you need to be sure you fully understand what you’re getting into before taking the plunge into commercial property financing in East Los Angeles.

Primary Differences from Residential Loans

The United States has some of the best home loan options in the world. The most common loan type, which you’re probably familiar with, is a 30-year, fixed-rate loan. These residential loans are readily available, have low interest rates, fairly low fees, and carry no prepayment penalties.

Commercial real estate mortgages tend to be the polar opposite.

Commercial mortgages tend to be much shorter time periods. Five to ten years is a typical loan term. The monthly payment is often calculated based on a 20 or 30 year time period, but the loan itself comes due much sooner. At that time, a balloon payment is required, which means that you must either have the cash to pay off the loan, or you must refinance it. Most business owners end up refinancing into a new loan.

But you don’t want to refinance too soon. No, no. Unlike residential mortgages, commercial loans almost always have a prepayment penalty for refinancing too early. For example, a five year loan will typically have a two or three year prepayment penalty . It’s pretty common for a 10-year loan to have a 5-year prepayment penalty.

These penalties are pretty stiff, also. A common structure is to have a gradually decreasing percentage of the loan balance as the penalty. For example, a loan with a 5-year prepayment penalty period might charge 5% of the loan balance if you pay it off in the first year, 4% in the second year, 3% in the third year, 2% in the fourth year, and 1% in the fifth year. This is referred to as a step-down prepayment penalty . There are also other methods for assessing this penalty that get pretty complicated.

You may be able to avoid prepayment penalties by agreeing to other terms that benefit the bank, such as a floating rate loan . As the name suggests, this is a loan with a variable interest rate. Your mortgage contract may stipulate a min and max interest rate, and the time period in between adjustments. In a low interest rate business environment like we have right now, it can be a difficult decision to choose between fixed and floating rate loans.

You’ll also find that interest rates on commercial mortgages will usually be higher than on residential loans. This is because of the government-backed entities, such as Fannie Mae and Freddie Mac, that buy up residential loans. Since this doesn’t exist in the commercial mortgage world, banks must manage their lending risk themselves, and thus they tend to charge higher rates for that risk.

Commercial properties are going to require significantly greater down payments than residential loans. While no money down, 3.5% down, and 5% down loan programs are quite common for homes, commercial loans will almost always require a minimum of 20% to 30% down.

Lastly, the fees that you’ll pay in obtaining a commercial mortgage might make you shed a few tears. Residential mortgages tend to have total fees in the range of 1% to 2% of the loan amount, whereas commercial mortgages frequently have fees in the range of 3% to 5% of the loan amount.

Still craving your own Southeast Los Angeles County office building? Let’s talk about qualifying for this loan…

Commercial Mortgage Qualification

As crazy as this may sound, it’s absolutely possible for a person to buy a home with no money down, a 580 credit score, a bankruptcy filing on their record, and even while owing back taxes to the IRS. Such loan programs not only exist but are also promoted and backed by federal agencies.

Qualifying for a commercial real estate loan is another beast altogether.

Qualification for commercial real estate mortgages is primarily based on the ability of the property to support itself . In other words, banks want to see that the property can generate enough rent to cover the mortgage payment, taxes, insurance, and other expenses, plus have a little extra left over every month. This is far more important than your own personal credit score or personal income. A lender will want to evaluate existing leases on the property if there are multiple tenants, look at the history of tenant stability, and conduct other evaluations on the property itself.

If you are purchasing a property that won’t have other tenants other than your own business, then the lender will get quite nosey about the financial health of your business. In short, they’re going to treat your business as a “tenant” and evaluate the ability of the property to support itself based on phantom “rent” your business can pay.

On top of that, the bank may want to see significant cash reserves in your business. If your business is struggling to make ends meet every month, and carries very little cash, it’s going to be very difficult to purchase a property in East Los Angeles. There are some exceptions to this for SBA loans, however.

If the property you’re looking at in East Los Angeles has other businesses leasing space in it, the lender may question your ability to manage the property and those tenants. Some lenders will impose a minimum experience requirement for property management, or demand that you retain the services of a commercial property management company as a condition of the loan. If your business is going to occupy at least 51% of the square footage of the commercial property in East Los Angeles, then this is another area where an SBA loan can be attractive.

Tax Benefits

Despite the costs involved in obtaining commercial real estate mortgages, and the strict qualification requirements, it can absolutely be worthwhile. In addition to the possibility that owning will be cheaper than leasing your space, you will benefit from any appreciation in the property’s value.

On top of that, there are significant tax benefits to owning commercial property, just like there is for owning your home. All that interest you pay is tax deductible by your business, as are property management fees, maintenance costs, insurance, and property taxes. Owning the property also provides some amazing estate planning options if you plan to pass your business along to your heirs.

Buying your own commercial property is a huge step for your East Los Angeles business. We’d be happy to review the financial pieces of such a transaction with you, including the potential tax planning opportunities this will present. Schedule a time here:

https://calendly.com/uplevelservices/business-consultation

Warmly,

Chris Gelfuso

Expense Reimbursement vs Company Credit Cards: What East Los Angeles Business Owners Need to Decide

Fri, 06 Feb 2026 08:04:37 GMT

If you’ll forgive me, I’m going to get pretty geeky today.

You probably didn’t realize that there are actual pros and cons to expense reimbursement for employees, etc. or using a company cc. Oh my East Los Angeles readers, I’m going to take you down a little rabbit hole today, yes I am.

But first, a quick update on some relief programs we’ve previously discussed.

First, the SBA has stopped accepting new PPP applications as most of the funds for the program have been allocated. So, if you didn’t already apply for a PPP loan for your Southeast Los Angeles County business in this funding round, you’ll no longer be able to do so.

Second, the Restaurant Revitalization Fund (RRF) program that kicked off last Monday is now in full swing. So far, the fund has received almost 200,000 applications from bars, restaurants, bakeries, and similar businesses. In my opinion, this is still a small proportion of those who actually need it.

If you run such a business in East Los Angeles, or know somebody that does, funds are available to help with payroll and rent. Funds are on a first come, first serve basis for approved applicants. So, just like applying for PPP loans, timing is of the essence.

This is a great program for the right business. To read the SBA program guide on the RRF, go here .

And as I mentioned last week, please do forward this email to any Southeast Los Angeles County restaurant owners you may know to make them aware of this program. It is expected that the funds allocated to this program will go quickly, so we want to make sure that all East Los Angeles restaurant and bar owners are aware of it.

Now, let’s dive into handling business expenses paid by employees.

Expense Reimbursement vs Company Credit Cards: What East Los Angeles Business Owners Need to Decide

“The secret of getting ahead is getting started.” – Mark Twain

You gotta spend money to make money. All businesses need supplies, materials, and services to help produce their own goods and services.

Depending on the nature of your business, your employees may need to make independent purchase decisions on a frequent basis. Empowering your employees to make these purchases on their own can make your business run much more efficiently. After all, do you really need to be involved in the decision to buy a new toner cartridge for the printer?

Common expense types your employees may need to pay for include:

Office supplies
Postage
Parking and tolls
Meals
Small tools
Small quantities of parts and materials

All of these expenses, and many others, are necessary to complete tasks required to run your East Los Angeles business. The critical question you need to address up front is this: Will you reimburse employees for expenses they pay or provide them a company credit card to pay such expenses?

This decision comes with important tax and accounting consequences, and you as the business owner need to know the pros and cons of each method.

Time Savings

On the surface, issuing employees a company credit card may seem to be the better option in terms of saving time. With a credit card there are no expense reports to be completed, no reimbursement checks to be cut. Sounds good, doesn’t it Southeast Los Angeles County friends?

But think about this: Do you need to allocate expenses to specific clients ? If your employees are, for example, purchasing parts and materials needed to complete a job for a customer, then those credit card charges ultimately need to be assigned to that customer’s account for invoicing. This means somebody has to go through the credit card statements and reconcile them against receipts and job orders. Oops! There went the time savings.

If you don’t need to do this for tracking expenses back to specific customers, then a company credit card can certainly save a lot of time. Otherwise, having employees complete expense reports and reimbursing them for business expenses they paid out of pocket may actually be faster and easier for your business.

Trust Issues

When you provide a company credit or debit card to an employee, you’re placing a significant amount of trust in that person. You need to have faith in your employees that they won’t go on a wild Amazon shopping spree.

If this is a concern, running a reimbursement program might be the better way to go. I’d say this is particularly true if you happen to have a fair amount of employee turnover, or if you operate multiple locations inside and outside of East Los Angeles wherein you don’t necessarily know each and every employee. As your business grows, you won’t have direct connection with every single team member, which can exacerbate trust issues.

Use Tax Audits

As more people have worked from home over the last year and have taken their company credit cards with them, one issue in particular has grown quite a bit larger. This has been compounded by state budget issues, causing states to step up their enforcement efforts in order to collect more revenue.

What am I talking about? Use tax.

Use tax is a tax you’re supposed to pay when sales tax wasn’t paid on items used in your Southeast Los Angeles County business. If your employees are working from home and order supplies online, for example, those supplies may be being ordered on a website that doesn’t collect and pay sales tax in our state. Thus, you’re supposed to pay the equivalent sales tax in the form of use tax and file a separate tax return for this purpose.

The credit card statement that shows the transactions your employee is making can be demanded by the state when they conduct a use tax audit. As they scrutinize purchases that you may not even really be aware of, they’re looking for those online transactions for items used in your business that were shipped in from out of state, and then you may be liable for a use tax bill or, at the very least, have to pay the cost of us to represent you to fight that tax bill.

This is a clear downside to providing company credit cards to your employees. And for the record, these purchases don’t have to be made from home — they can just as easily be made online right from your East Los Angeles office.

Accountable Plans

If you choose reimbursement for expenses paid out of pocket, you’re going to want to set up what the IRS calls an accountable plan. By running your reimbursement arrangement as an accountable plan, your employees won’t need to worry about reimbursed funds ever being treated as income to them by the IRS, and there are no tax consequences for them. In addition, the accountable plan helps ensure the deductibility of the business expenses for you.

In creating an accountable plan, you’ll:

Set specific rules about what types of expenses are eligible for reimbursement
Create a standardized expense reporting form
Set timelines for reporting expenses and reimbursements
Stipulate the requirements for substantiation (e.g. paper receipts)

Using an accountable plan instead of company credit cards for each employee can help avoid some of the issues mentioned earlier. You can more closely track the payment of sales and use tax to avoid future surprises, quickly assign expenses to customer jobs for faster invoicing to the customer, and eliminate any potential trust issues.

The trade off? Time and convenience.

If you’re debating this decision, we can analyze the types of expenses your East Los Angeles business incurs to help you with making a decision. And also, if you decide to set up an accountable plan, we can help you with that process, too.

As an employee of your own business you can even have the company reimburse you for expenses you incurred personally!

Let’s talk more about it:

https://calendly.com/uplevelservices/business-consultation

Warmly,

Chris Gelfuso

4 Next Steps for Business Tax Return Review

Fri, 06 Feb 2026 07:53:31 GMT

This week marks the end of another tumultuous tax filing season.

I can’t remember anything like it. With the last minute legislative changes, software update delays, and IRS service issues — this very well might have been the most disrupted and difficult tax season in decades.

But despite an exhausting tax season, we’re never done, and we’re always here for YOU – including for a business tax return review. More on that in a moment.

We know that it probably hasn’t been easy for your East Los Angeles business either, and we sincerely appreciate the trust you’ve placed in us to guide you through the difficult time we’re living through.

Despite all the challenges in the world right now, we’re incredibly optimistic about the future, and look forward to continuing to work with you as you build a bigger and better business through the rest of 2021 and beyond.

4 Next Steps for Business Tax Return Review

So, let’s talk about just that (your East Los Angeles business), shall we?

Just because tax season is over doesn’t mean we’re not still here for you.

In fact, right now is a great time to devote yourself to a business tax return review. This means we want to help you look at your business finances and make improvements that’ll put you in a better position for the future. Here are a few “what ifs” to mull over, that we could help you with over the coming months.

Business Tax Return Review Step 1: What if you could reduce some business expenses?

It’s very rare for a business to be operating as lean as it possibly could be. There’s also a point of diminishing returns when it comes to trying to reduce your operating expenses.

But we can help you find a happy medium. Let’s discuss how to:

Eliminate software that you’re paying for but don’t actually need.
Identify things that you’re doing yourself that could be done better and cheaper by hiring another company to do it — and vice versa. This allows you to focus on sales!
Seek out ways to reduce the cost of the administrative work that is required to run your business.
Look at what could be automated in your business — without sacrificing quality of work.

Some cost reductions are simpler than others. For example, switching company cell phone plans or finding a cheaper credit card processing service are the low-hanging fruit.

But with some analysis, we might be able to help you find other ways to save money without introducing any negatives.

Business Tax Return Review Step 2: What if you could streamline some business processes?

We’ve worked with businesses in a lot of different industries in East Los Angeles over the years. In that time, it’s been interesting to see both the differences and similarities in what makes each type of business “tick.” One of the most fascinating things is that ideas from one industry can often be applied to a totally different industry to make significant improvements in the efficiency of how that business operates.

For example, we can help analyze who does what within your business to ensure you have the right people doing the right tasks. We can also take a look at how information is communicated at all levels of your business, finding ways to reduce unnecessary back-and-forth stuff and eliminating wait times for key decisions. You likely have workflows that can be digitized to make them more efficient, too. These are just basic examples of the type of process improvements we can help you out with

Around here, we like to say that Efficient Business = Profitable Business. We can help you evaluate some of your business processes to identify areas for improvement helping your business become more profitable. And all without paying the insane management consulting fees that a giant consulting firm would charge you!

Business Tax Return Review Step 3: What if you could increase your prices?

You may have noticed that the prices of everything from food to lumber to used cars has gone up lately. While Jerome Powell of the Federal Reserve recently shared that these price increases are short-term as the economy reopens, I think it’s easy to see that some prices will never come back down. And many of you in East Los Angeles are feeling this.

When was the last time you evaluated your own prices for your Southeast Los Angeles County business? If it’s been a while, let’s talk about it. Your supply costs have likely increased, as have your labor costs. Not to mention the fact that you need to increase your own net profits in order to maintain your own lifestyle as costs go up around you. So, let’s take a serious look at all the inputs into your business and determine whether it’s time to raise your prices and exactly how much.

Business Tax Return Review Step 4: What if you could build up some cash reserves?

A year ago, many small businesses were running really, really tight. In fact, news articles at the time showed that most small businesses had only 29 days of cash on hand. That meant when lockdowns hit, they didn’t have the cash reserves to survive.

If your business had an emergency fund, then your business could weather most short-term economic shocks. If you’ve ever seen gigantic corporations report taking multi-billion dollar losses during a quarter and wondered how on earth they can do that, it’s because they either:

Have huge cash reserves, or
Have access to huge lines of credit.

As an example, a little computer company you may have heard of called Apple has over $195 billion in cash on hand. That’s…wow… Yeah, that’s a LOT of money. It’s so much money that it’s hard to envision anything being able to destroy Apple as a company, short of an asteroid obliterating the entire planet.

While you may not need to hoard that much cash, wouldn’t it be nice to have a 3-6 month cushion in case something else happens? That’s definitely a conversation worth having.

So, just because your business tax return is filed and done, doesn’t mean there isn’t still work to be done. There are plenty of ways that we can help your Southeast Los Angeles County business going forward. Schedule a meeting here:

http://www.temp-uplevelservices.tk/contact/schedule-an-appointment/

To getting things done,

Chris Gelfuso

Chris Gelfuso’s Three Business Tax Penalties To Avoid When Possible

Fri, 06 Feb 2026 07:33:38 GMT

With May 17th behind us (though for those in Texas, Louisiana and Oklahama — this was just another day. June 15th is coming at us fast!), we’re turning towards the planning and optimization part of our calendar.

But before we leave taxes in the rearview, let’s address an unfortunate reality: as a business owner, you have a greater number of tax reporting obligations than a regular person has. (Of course, you have MANY more tax-savings opportunities as well.)

But with those increased obligations comes increased opportunity for things to slip through the cracks, potentially resulting in business tax penalties and interest charges from the IRS.

Some of these penalties are straightforward and simple. Others get really complex in how they’re calculated.

Of course, your best course of action is to just let us deal with all of this for you. This is, after all, what we do.

But just in case there’s any question in your mind about what your filing and payment responsibilities are to the IRS for your business, let’s run through them from the perspective of the business tax penalties that can be assessed if you don’t take care of them.

Buckle up, partner. There’s lots in here…

Chris Gelfuso’s Three Business Tax Penalties To Avoid When Possible

“Tell me and I forget. Teach me and I remember. Involve me and I learn.” – Benjamin Franklin

Your East Los Angeles business may have a variety of tax return filing requirements. The exact forms you need to file will depend on the legal structure of your business, whether you have employees or utilize independent contractors, and the dollar amounts of some of the taxes you have to pay.

There are over 150 different penalties in the Internal Revenue Code. In this Strategy Note, we’ll cover the most common ones you need to be aware of.

Business Tax Penalty #1: Income Tax Return Penalties

Just like you need to file a 1040 return each year for your personal income taxes, your Southeast Los Angeles County business has tax return filing requirements, too.

If you operate your business as a sole proprietorship, your business tax return is the Schedule C that gets attached to your personal 1040 return. If you don’t pay in enough tax money throughout the year, you may end up owing an Estimated Tax Penalty from your self-employment income. In addition, you could be subject to Failure to File and Failure to Pay penalties, which we’ll go into detail below.

If your business operates as a partnership, you must file a Form 1065, Partnership Income Tax Return, each year. If you file this partnership tax return late, you’ll be charged an IRS penalty of $210 for each month it’s late, times the number of partners. This penalty is maxed out after 12 months of being late.

So, for example, if your business has four partners, and you file the tax return 14 months late, your penalty would be: $210 x 4 x 12 = $10,080. That’s a big check to write to the IRS for a tax return that normally doesn’t have any taxes due!

But wait, there’s more! Since each partner in the partnership is required to receive a Form K-1 from the partnership, reporting their share of income, the IRS imposes additional penalties for failure to provide these K-1 forms. This penalty starts at $280 per K-1, and increases significantly if the requirement to issue the K-1 was “intentionally disregarded.” This intentional disregard is difficult for the IRS to prove, but if they can do so, the maximum penalty against the partnership can be up to $3,392,000.

That’s not a typo. The maximum penalty can be over three million dollars. Such penalties are incredibly rare, but they do happen.

If your business operates as a subchapter-S corporation, you must file a Form 1120S each year to report the business’ income, expenses, and other information. The same $210 per month penalty applies, multiplied by the number of shareholders of the corporation during the year. In addition, the same $280 penalty can be imposed for not providing the appropriate Form K-1 to shareholders on time.

Bottom Line: File these returns on time! There is usually no income tax due on a 1065 or 1120S return, so you should have no concerns about paying a balance due. The issue that most businesses face is that their bookkeeping isn’t up to date to get these returns prepared. We can help you get caught up and get returns filed to avoid these massive penalties.

Business Tax Penalty #2: Employment Tax Penalties

If you have employees within your East Los Angeles business, then the payroll taxes that you pay to the IRS in relation to those employees are one of the highest enforcement priorities for the government. Over half of all the tax debt owed to the IRS is employment tax debt. These taxes consist of income tax withholding from your employees, plus both halves of Social Security and Medicare taxes.

Depending on your total payroll tax liability for each quarter during the previous year, the frequency with which the IRS expects to receive employment tax payments from your business can change. However, the vast majority of small businesses must deposit these taxes on a monthly basis.

If your business fails to make the required tax payment, you may be subject to a Failure to Deposit (FTD) penalty. This penalty is pretty stiff, and increases the longer it takes you to pay. The penalty is:

2% if you’re 1 to 5 days late
5% if you’re 6 to 15 days late
10% if you’re more than 16 days late and the IRS hasn’t sent you a bill
15% if the IRS sent you a bill and has to chase you down for the money

In addition to making these routine tax deposits, most businesses also need to file a quarterly tax return to report wages, income tax withholding, and Social Security and Medicare taxes, among other items. If you file this tax return — Form 941 — after the due date, you can also be subject to a Failure to File (FTF) penalty of 5% per month, which caps out at 25%.

On top of these two penalties, the IRS will charge you a Failure to Pay (FTP) penalty on top of the FTD and FTF penalties. This penalty will accrue at the rate of:

0.5% per month as the base rate
Reduced to 0.25% per month if you’re on a payment plan
Increased to 1% per month if the IRS has threatened to seize some of your assets, and you still don’t pay

This FTP penalty has a maximum cap of 25%. If you don’t file and don’t pay, you do get a slight break, as the combination of the FTF and FTP together caps out at 47.5% combined.

With all these penalties combined — FTD, FTF, and FTP — the total can equal up to 62.5% of the tax liability.

Oh, and to top it off, they charge 3% interest on both the tax and penalties.

Can you see the IRS clearly isn’t playing around when it comes to employment taxes?

Business Tax Penalty #3: Information Return Penalties

Are your penalties out yet? The IRS has many, many more penalties to throw at your Southeast Los Angeles County business. Here are two super important ones to also be aware of.

– If you utilize the services of independent contractors within your business, you’ll need to file a Form 1099-NEC for each contractor that you pay over $600 in a year. If you file this return late, the IRS may assess a penalty between $50 and $270 per 1099, depending on how late you file it. This penalty is interesting because it can be assessed for both the copy of the 1099 you’re supposed to send to the contractor and the copy you’re supposed to send to the IRS — effectively doubling it.

– If you have employees, you also need to prepare and file a Form W-2 for each employee, plus a Form W-3 to reconcile them with the IRS. Filing these late incurs similar penalties as those 1099 forms, ranging from $50 to $280, depending on how late you file them.

Both of these penalties are subject to the same $3,392,000 maximum penalty described earlier.

Are you convinced that you should leave all of this to the professionals? If you’d like a review of your business filing requirements to avoid these and the other 100+ penalties the IRS can assess, let’s talk:

http://www.temp-uplevelservices.tk/contact/schedule-an-appointment/

To getting things done,

Chris Gelfuso

5 Tax Planning Tips to Give Your East Los Angeles Business a New Look This Summer

Fri, 06 Feb 2026 07:15:42 GMT

Before we talk about some tax planning tips to give your business a new look this summer, I first want to say that I hope your Memorial Day weekend was special. Even though this East Los Angeles business owner had some work to do, a quiet office is my friend. In thinking about the spirit of this past weekend, I was reminded of how very grateful I am for our servicemen and women who made the ultimate sacrifice.

May all of us live our lives as a reflection of their honor and the gifts we too easily take for granted.

Let us never take those freedoms as “automatic.”

And as Memorial day also serves to remind us, summer is finally here.

But, lest you think we just sip margaritas by the pool all day after tax season… What we really spend a lot of time doing in the summer is sitting down with East Los Angeles business owners to carefully analyze their tax situation — BEFORE the winter strikes and the moves become much more limited.

This is called “tax planning,” an essential move to get the maximum tax savings possible. And with what *might* be coming down the pike from Congress, wisdom says it’s time to get your ducks in a row and plan for what lies ahead. If you’re ready for some tax planning tips, let’s chat:

http://www.temp-uplevelservices.tk/contact/schedule-an-appointment/

These sort of issues are what we specialize in worrying all about — so you don’t have to. Because YOU have to keep your head in the bigger picture.

Some thoughts for that below…

5 Tax Planning Tips to Give Your East Los Angeles Business a New Look This Summer

“If you think you are too small to be effective, you have never been in the dark with a mosquito.” – Betty Reese

Entrepreneurs know that hard work and a great idea don’t guarantee success. Fortunately, most of them also know that failure isn’t final — almost every successful business owner has crashed and burned at least once in their career.

One of the best ways to pick yourself and your Southeast Los Angeles County business back up off the ground is to take a fresh look at things you “thought” were set in stone. Here are some strategies that could give your business a fresh lease on life this summer…

Tax Planning Tip #1: Re-target your market.

In the heat of start-up passion, entrepreneurs frequently try to interest too broad a market: “Everyone will want to buy this!” The result: getting lost in the crowd. The more closely you define your market, the more success you’ll experience.

Tax Planning Tip #2: Re-examine your price.

Price is obviously supremely important. See how you can lower your overhead or cut production costs. Perhaps there’s a new way to package your products, so that your average transaction value can go up?

Tax Planning Tip #3: Identify and push your best product.

Focus on what works. If your hot product is coffee cups, look for ways to highlight and expand that niche instead of veering into new territory. How about different colors and holders for those cups?

Tax Planning Tip #4: Make your marketing materials more memorable.

Emphasize the benefits — SPECIFICALLY how features of your product or service will improve business or the quality of life for your customer. And scrutinize your advertising. Using big media is not always the answer, especially when you have narrowed your market. Don’t overlook narrowly-targeted marketing efforts or joint promotions.

Tax Planning Tip #5: Keep promoting.

Make sure your message sinks in. Find affordable ways to reach your target market, and use these avenues as often as you can. Try social advertising!

These are just a few ideas to get you started. There may be longer conversations to be had. And that’s what I’m here for.

To getting things done,

Chris Gelfuso

How To Digitize Your Business by Chris Gelfuso

Fri, 06 Feb 2026 06:29:45 GMT

It seems as if the world is getting drenched in tech. It’s literally falling from the sky (we’re looking at you, rocket boosters).

Because there is so much technology around us, it can be easy to become numb to it. We can quickly start to view it as just a “thing” that’s always there, rather than taking the time to contemplate how best to use it.

In business, technology can help you operate more efficiently. And I like to say that in business, efficiency = profitability . Oh, and you know, I like that.

Embracing technology and digitizing various aspects of your East Los Angeles business can be daunting, I get that. But as you’ll see in today’s strategy note, it doesn’t need to be as scary as you think.

Let’s leave the paper behind…

How To Digitize Your Business by Chris Gelfuso

“It’s amazing what you can accomplish if you do not care who gets the credit..” – Harry S. Truman

The last 30 years has seen a massive shift in how we interact with technology. Tech used to be a thing that was mostly “in the future”, but now it’s part of all aspects of our lives. From how we communicate to how we make purchases to how our cars work and more, tech is ubiquitous.

While most big companies have embraced all things digital, many East Los Angeles small businesses have struggled to keep up with tech. Sound familiar? As a small business, it’s just more difficult to pick and choose what technologies to embrace — not to mention that some things end up being a bigger part of your budget.

I get it, since we face the same challenge in our business.Tax preparation software, accounting software, tax planning software — these things are all expensive for us to purchase and keep our staff trained on. But, we use them because they help us do a better job for you.

What are the equivalents in your business? What can you digitize to make things better for your clients? While there is no one-size fits all answer, there are certainly general areas to consider for going digital.

Garbage In, Garbage Out (GIGO)

More than just a classic computer phrase, this is a philosophy about going digital. To understand what you can digitize, you need to view your business as a series of systems.

If you haven’t yet taken the time to create systems in your business, this is the first place to start. By analyzing how your business operates and creating processes to do things, you can then look at which of those processes can be digitized.

Sure, things like mail, invoices, contracts, and the like can all be scanned to the cloud, for example, but if you’re used to just shoving paperwork in a drawer and sorting it out later, digitizing all that may not make a whole lot of sense. But with an actual system in place, it becomes more about utility, rather than just organization.

So, what exactly is “digitizing”?

For starters, it could mean becoming a paperless office. This isn’t just about “going green”, but also about saving money and time. One study, by Nucleus Research, found that small businesses that go paperless see a return of more than $8 in cost savings for each $1 they spend on digitization. That adds up in a hurry.

Other studies have shown that paper creates more data breach risks than being digital. In large companies, paper records account for nearly ⅔ of all data breaches, according to the US Department of Health and Human Services.

Final data point: According to research firm IDC, the time wasted by employees from handling paper leads to an average productivity loss of 21.3%. That’s basically an entire day out of each work week that is unproductive due to the way in which paper actually impedes workflows.

OK, so how do you start going paperless? To start with, consider the low-hanging fruit:

Start sending invoices to customers by email.
Use electronic funds transfers in lieu of checks.
Use cloud-based document sharing services within the office.
Use software to set employee schedules and replace the old time clock.

Where you go from the basics will depend on your industry and line of work. If your business is capable of running with a remote workforce, then you could become a virtual operation and use a variety of digital technologies for communication and project management. The last year has taught us that more people can work remotely than was previously anticipated, with entire companies moving into the cloud and actually saving money on commercial real estate costs in the process.

Digital Reporting

No, I’m not talking about the new journalism division of your business.

Think about all the information that flows through your company. Your bank already provides account information digitally. You make your payroll tax deposits online via EFTPS. You might even renew your business license online, pay your state taxes online, place orders for parts and inventory online. In short, you’re probably doing more digitally than you think.

Look back on all the things that you do with data. Sit down with pen and paper — errr, I mean, a Word document — and make a list of all the information streams that you interact with digitally each week or month in the process of running your East Los Angeles business. Then, critically analyze the workflow around that data. Are there bottlenecks caused by doing things in an “analog” fashion?

For example, all accounts receivable and accounts payable should run through a software system. Bills that need to get paid are entered into the software, and then never again shall they see the light of paper, if that’s how the bill came in. Then, to track the health of your business, reporting should be done electronically through the software — there’s no need to physically print the data.

What about information related to production, deliveries, or sales? There may be industry-specific software you can use, or find a project management or customer relationship management (CRM) software to your liking to handle these tasks for you. These systems can manage this information more efficiently, and help you actually use your data for better business outcomes. Life just gets easier when all your customer contact information, work orders, and the like are digital — and your staff are properly trained on using the software.

With these parts of your business digitized, generating reports about the health and productivity of your business becomes easy peasy.

Digitizing Production

Reporting is about looking back at what has already been done. Digital production is about looking forward.

In your Southeast Los Angeles County business, you have a lot going on. Let’s just consider the marketing side of your business. There’s lead generation, converting leads into customers, fulfilling customer orders, etc.

Along this path, often called the “customer journey”, there are software applications that can help you out. I mentioned a CRM system earlier. There are also marketing automation softwares that can help you with handling various marketing tasks, and even more tools to help with digital customer service.

Consider, for example, live support via your website. You can install chat software on your website so that you and your staff can offer live support to visitors. These interactions can also then turn into new customers, or re-orders from existing customers. The point is using modern technology to provide answers via a real person, which will help your business to stand out in the crowd.

If you have a sales team, you can implement software that will help to parse out and distribute leads from various lead generation sources to your sales staff. There is software to help you prepare estimates, and automatically determine what parts or materials will be needed for a job. Software can help your sales team follow up consistently with warm leads in a timely fashion, to close more sales.

Again, depending on what your company does, additional levels of automation may be possible within your industry. The capabilities of certain AI systems are growing every day, providing real help to businesses. This is especially true with repetitive tasks, such as data entry. If you’re still doing a lot of manual data entry, AI can help.

This is just the tip of the iceberg, and the future looks exciting. Embracing digital solutions can be a major boost for your business, and more and more consumers are looking to do business with digital-forward companies.

What workflows can be digitized in your business? Where can software and automation help you operate more profitably? This may come as a surprise, but as accountants, we help small businesses all the time to analyze their business processes and help them with going digital. If that’s of interest to you, let’s chat:

http://www.temp-uplevelservices.tk/contact/schedule-an-appointment/

To getting things done,

Chris Gelfuso

Chris Gelfuso’s Tips for Building a Business Emergency Fund

Fri, 06 Feb 2026 06:13:01 GMT

Pretty sure I’ve said this before.

I’ll likely say it again, too.

If there’s one thing the past year has taught business owners, it’s that the “unexpected” can occur at any time.

Managing your East Los Angeles business during good times is hard enough; rough times make it all the more difficult.

To get you through the next rough time — and there will be another one — you need to have contingency plans in place. And one of the best ways to protect yourself from economic calamity is to have cash reserves (aka a business emergency fund).

But before we get to that, just a quick reminder that second-quarter estimated tax payments are due June 15 . If you operate your business as a sole proprietorship, then you may have an estimated tax payment obligation. Give us a call to discuss this if you haven’t already.

Now, let’s talk about that business emergency fund.

Chris Gelfuso’s Tips for Building a Business Emergency Fund

“Luck is what you have left over after you give 100 percent.” – Langston Coleman

Prior to the economic fallout from 2020’s happenings, the typical American small business only had 28 days worth of cash reserves on hand.

Meaning, the average small business in this country couldn’t survive for a full month if revenue was suddenly turned off. As a result, Congress had to prop up small businesses through programs such as the EIDL and PPP loans that you’re sick of hearing about by now.

As the economy rebounds strongly, it’s a good time to set aside a business emergency fund for your East Los Angeles business to tide you over during the next period of economic upheaval. This isn’t doom and gloom thinking, it’s simply the reality of the business cycle: There will be another recession at some unknown point in the future.

You Need To Know How Much Is Enough

In many ways, your business emergency fund follow the same rules that your personal emergency fund should. We typically advise both individuals and businesses to maintain an emergency fund equal to at least three months of expenses . These monies should be held in something like a business savings account, business money market account, or other readily accessible, low-risk account.

What expenses go into that three-month calculation?

Take a look at the income statement that we provide to you, and add up all the recurring expenses for a typical month. Don’t include rare expenses, such as big-ticket repairs, and don’t include sales taxes. But definitely include payroll, payroll taxes, supplies, materials, rent, utilities, fuel, your favorite accountant, and the like. Then, multiply that number by three.

This is going to be your initial target.

After saving three months of cash reserves, I’m then going to encourage you to build up to six months of reserves . But we’ll start with the easier goal first.

How to Actually Save Up the Cash

Building a business emergency fund starts the exact same way as any other savings process: With action and discipline. Successful companies create documented processes to be used for repeating activities, including how revenue is allocated each month.

The biggest tip I can give you is this: Treat your savings goal like any other fixed expense.

For example, if the lease on your office is $5,000 per month, then every month you know you need to cough up that $5,000. The same goes with, say, monthly insurance premiums. It’s a fixed expense that you know you need to budget for every month. Treat the amount that you’re going to stick into the reserve fund every month as a similar fixed expense.

In fact, I’d suggest taking this a step further and set aside your reserves first. Meaning, at the start of each month, sock away whatever fixed amount. It may take you a while to get there, but by paying your emergency fund first each month, it will prioritize this “expense” item for you and help you build resiliency for your business in the long run.

Is it going to take you a while to get there? Yes, it might. As an example, if you have $20,000 per month in base costs to run your East Los Angeles business, your business emergency fund target is $60,000. If you can set aside $5,000 per month, it’s going to take you 12 months to build up your cash reserve. That might sound painful right now, but your business will thank you later.

Once you develop this savings habit in your company, an interesting thing will eventually happen: You’ll get by just fine without spending that money every month.

When to Call Upon Your Reserves

While many Southeast Los Angeles County companies and small business owners might have already thought the process out this far, the next step in the process is actually the most difficult. You should create a set of rules for when and how you’ll use the cash reserves.

This business emergency fund shouldn’t be used for non-emergencies, obviously. By having written criteria for when you’ll use it, you’ll avoid the temptation of dipping into it when you shouldn’t.

For example, you might create a written rule that these reserves can only be touched after you’ve done one round of layoffs during a recession. That’s a harsh stance to take, but a necessary one in planning to survive an economic downturn.

By taking the time to create and document the process and having the discipline to treat business emergency fund contributions as a fixed expense that’s non-negotiable, a significant amount of liquidity can be put away for emergencies. In some cases, those funds should remain strictly liquid, but in other cases, having them invested in easily liquidated, low-risk investments can help ensure your money continues to work even when it’s in “reserve.”

Need some help determining how big your business emergency fund should be? Are you looking for other smart ideas to make your East Los Angeles business more resilient in the event of future economic uncertainty? Let’s connect, and put together a workable plan for the future of your business:

http://www.temp-uplevelservices.tk/contact/schedule-an-appointment/

To getting things done,

Chris Gelfuso

Chris Gelfuso’s Tips for How to Raise Your Prices Properly

Fri, 06 Feb 2026 05:43:57 GMT

Did you hear the news from last week’s inflation report?

Consumer prices increased more than 5% between May 2020 and May 2021.

Given the Federal Reserve’s 2% inflation target, that’s a pretty steep increase.

Have you taken a look at your own cost of doing business lately? Your cost of labor, materials, supplies? Chances are, those are all going up, meaning it’s time to raise your prices, too.

But how do you actually go about doing that without nuking your East Los Angeles business? Let’s dive in.

Chris Gelfuso’s Tips for How to Raise Your Prices Properly

“Do not let what you cannot do interfere with what you can do.” -John Wooden

When you’re the one out purchasing goods and services as a consumer, you obviously want to pay the lowest price you can for the desired quality. But as a East Los Angeles business owner, the reality is that you need to charge high enough prices to cover all of your costs, plus generate a profit. Simply put, the raw materials and labor it takes to produce a specific result in your business cost money, and that can lead to difficult conversations and difficult decisions regarding your own pricing.

Maybe it’s just me, but it seems like there was a different attitude about price increases a generation ago. Not only did customers expect prices to go up over time, it was often a great marketing tactic to let customers and clients lock in pricing for a period of time.

Today though, consumers have become conditioned to look for lower prices. Many years of low inflation, combined with the ability to research pricing and quality online, have combined to make price increases seemingly more difficult to implement without sparking outcry from customers.

So, how do you go about this? The first thing to do is understand where your pricing structure already is and, from that information, determine where it really should be.

How to Raise Your Prices Tip #1: It’s Not a Level Playing Field

By far, the biggest worry for companies in respect to price is the cost of goods sold. How much does it actually cost you to provide the solution your company provides to customers?

More and more items can now be considered a commodity, and value-conscious buyers often have access to a greater number of similar products and services than ever before. Understanding how labor and material costs impact your bottom line is a critical first step in arriving at any price increase – but it’s not the only step.

Increased competition is a major factor in what prices you can charge. For example, a small town hardware store two generations ago might have had little – if any – competition. Today, most Americans are within an hour drive of a big box home improvement store, not to mention the fact that much of what they need will come directly to their home with a few mouse clicks. This increased competition creates downward pressure on prices.

But at the same time, like we’re seeing more recently, other factors can drive increases in price. Labor costs across the country are increasing. Supply chain disruptions are increasing the cost of raw materials.

It’s important for you to study what’s going on in your own industry. Take a look at benchmarking studies published by trade organizations in your industry, as well as research reports and analytics published by various consulting companies. We can help you locate this kind of data if this is completely new to you, so don’t hesitate to ask us for help on this.

Once you have the data about various price pressure factors, and how those factors are trending into the future , you’ll be able to stay a step ahead on forecasting your cost of doing business. This makes it easier for you to set future prices, and spread out price increases to minimize sudden shock to your customers.

How to Raise Your Prices Tip #2: Overcoming the Objection

Ultimately, though, no matter how well you understand the market for your products and services, the fact of the matter is that, yes, you have to raise your prices.

Here’s what tends to surprise business owners: In many cases, your highest-value customers will have little, if any, objection to the actual increase. These customers are smart cookies, and they know that prices rise over time. They understand that inflation is a reality, and they understand that you need to raise your prices to stay in business.

Most of the time, the only vigorous objections will come from your less profitable, higher maintenance clients – likely the same ones that frustrate you already and don’t value your services. It’s at this point that you can make a decision as to whether to retain these customers, or use the price increase as an opportunity to free up space for better customers. How’s that for a change in perspective?

How to Raise Your Prices Tip #3: Managing the Message

Once you’ve determined you need to raise pricing, it’s critically important you and your team can effectively share that message far in advance. Sales teams should be talking about price changes in their regular conversations with existing customers. Not only should they be saying a price change is coming, but they should also be transparent about the factors driving the increase. Maybe even going so far as to make suggestions to clients on how to mitigate the costs in the short term (if applicable to your particular products/services).

More than anything else, everybody on your team needs to present a united front when it comes to raising your prices. If you have a sales team, they can’t simply blame “the head office” for the price increase. They need to be able to articulate why prices are going up. Again, transparency is the winning formula here.

Additionally, your team needs to be ready for ongoing follow-up with customers in order to ensure that there aren’t any perceived changes in the quality of your products or services.

You want to assure your customers that your commitment to them is the same, no matter the price. Ultimately, raising your prices is a painless process if you do so in baby steps and your team effectively communicates the price changes.

More than anything else, remember that price increases are simply part of running a business for a long period of time. This isn’t taboo, and customers usually prefer that you’re upfront and honest about such things.

To help determine the best prices for you to charge for your products and services, it can be helpful to look over a detailed breakdown of the costs you incur in running your East Los Angeles business, along with industry benchmarks and cost trends. To schedule a time for such an analysis, book a time here:

http://www.temp-uplevelservices.tk/contact/schedule-an-appointment/

To getting things done,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Chris Gelfuso’s Tips for Creating a Business Disaster Plan

Fri, 06 Feb 2026 05:33:24 GMT

The past year and a half has been stressful for everybody in East Los Angeles. And I would argue it’s been doubly so for East Los Angeles business owners.

The thing is though, these things happen. Quite regularly. Maybe not global pandemics, but disasters in general.

So, as the person in your corner who might be one of the only ones asking you these questions — What happens to your East Los Angeles business if the building next door catches on fire? Are you prepared for the next hurricane, tornado, or hail storm?

Every business needs to prepare for these eventualities.

Do you have a plan?

If not, let’s get you one…

Chris Gelfuso’s Tips for Creating a Business Disaster Plan

“Remember, today is the tomorrow you worried about yesterday.” -Dale Carnegie

Every year, millions of new businesses are started across the country. Yes, millions. Unfortunately, a higher percentage of them will be out of business within five years.

Most businesses close due to issues such as a bad business plan, poor execution, and other controllable factors. But in a typical year — 2020 being an aberration — approximately 10% of businesses close due to a specific external event.

The unfortunate fact of the matter is that disasters can strike anywhere, any time. And this impacts businesses that aren’t prepared for it.

So how can you prepare?

Obviously, different business models call for different resources, but there are some generalities that apply to all businesses.

Business Disaster Plan Tip #1: Cash Is King

The first step is the most important: A business needs capital to operate, and while it’s easy to think you can simply bootstrap all the funding you’ll ever need if your ideal client can’t pay you, the money has to come from somewhere.

Enter cash reserves.

As a baseline, all businesses need at least three months of operating capital reserves available to them in cash or easily liquidated securities. These funds are earmarked only for emergencies and can be the difference between staying afloat while your business handles whatever disaster has befallen it.

At the same time, it’s important for you to understand two other important resources that can provide capital after a disaster. One is your insurance policy. Know what types of coverages you have, how to make a claim, and store copies of important policy documents away from the business location — such as scanned and uploaded to the cloud.

The second is to know what resources will likely be available to you from local, state, and federal government agencies, including FEMA and the SBA. Contact our local emergency management agencies to learn more about what resources — including possible grants and emergency loans — are usually made available after local disasters. Learning about this stuff now will better equip you to navigate all the red tape later.

Business Disaster Plan Tip #2: Know Your Customer

The events of the past year will be studied for generations due to the impact the pandemic has had on businesses of all sizes. While many companies were forced to shutter their operations, other businesses were able to shift their operations into new markets and actually grow business while the economy shrank. In addition, many new businesses were started, as crazy as that sounds.

The lesson here is simple: You must know your customer. This is critical for being able to survive a disaster situation. By knowing and understanding your customers, you’ll be prepared to do what is necessary to shift your operations to continue serving them.

For example, a restaurant might be forced to close their dining room, but can they still handle take-out orders? Or, for example, could that restaurant cater meals for first responders, even if they couldn’t be open to the general public?

OK, in light of recent events, maybe that’s the too-obvious example.

So, how about a factory? Can production be shifted from one product line to another to meet the needs of the changing business climate? OK, maybe this is obvious, too, as some businesses were able to quickly shift production to make ventilators, masks, and hand sanitizer last year.

Take the time now to learn more about your customers. Find out how they would respond in certain situations. Learn about what kind of support, products, and services they need and how their consumption changes during a disaster situation.

Business Disaster Plan Tip #3: Secure Your Supply Chain

It’s also important to understand how your suppliers will fare in a disaster. If you rely solely on one supplier for a key item, and that supply line is upset, your business could be forced to close. A far better plan is to foster relationships with multiple suppliers to ensure there are no challenges to you. Remember when the Suez Canal was closed this spring? While this wasn’t a “disaster” in the traditional sense of the word, it created challenges for many companies that relied too heavily on only one means of bringing in supplies.

At the same time, it’s also wise to know how your suppliers plan on dealing with disasters, too. What type of situations could affect them (which are different from what can affect you) due to location? Will they shut down a production line themselves – or shift production to other products? Where does that leave you, and what will you do about it?

If you’re scratching your head on any of these questions, that’s OK. That’s the whole point of a planning exercise like this — to make you dig deep and find the answers now, rather than after disaster strikes.

Business Disaster Plan Tip #4: Creating The Plan

Common sense would dictate that no one can create a plan to handily cover all disasters – in the last year, we’ve seen monstrous wildfires, cities torn apart by riots, a global pandemic, and transportation and supply line disruptions.

Every one of them impacts somebody’s business, and a hurricane offers a far different “type” of disaster than a localized riot. Any disaster plan simply starts with asking “What if?” and beginning to think about what could be done in such an event.

The next step is simple though: Begin to write it down and document it, step by step. Share it with your team, share it with your suppliers, and even your customers. More importantly, don’t stop refining it and amending it. We already see all the craziness on the news, so put your own business in those scenarios and create a solution to defend your company against it. Do you go virtual? Do you change your sales model? Do you relocate? Do you pivot?

All these are options and having a disaster response plan sussed out well in advance is the best way to ensure your East Los Angeles company’s survival. It’s just like insurance: You hope you never need it, but it sure is handy when you do.

To getting things done,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Thoughts on How East Los Angeles Business Owners Can Achieve Business Solvency

Fri, 06 Feb 2026 03:06:52 GMT

With our nation celebrating its 245th birthday on Sunday, and all of this talk about “independence” flying around, I have a question for you — one that I think you should think hard about:

Are you achieving the independence you wanted in your business?

As you know, it’s hard — and it’s LONELY — to be a East Los Angeles business owner in this environment. Achieving business solvency can seem like a formidable task as you see the constant barrage of chaos and fear the media throws at your customers (and maybe even trickling into your own consciousness as well).

Which is why it’s so important for you to have a clear handle on the bottom line for your business — and on ALL of the tax implications you’ll be facing under the new tax code, and how to get ahead of them.

In short, how to achieve business solvency.

For instance, are you taking every deduction possible for this year … and, if so, are you properly accounting for them?

For example, one of the big last-minute tax strategies a lot of my clients like is the “heavy vehicle” write-off. When you purchase a heavy vehicle (defined as a vehicle with GVWR of over 6,000 lbs.) that is used 100% for business — well, then you can write off 100% of it.

To do this, we use Section 179 in conjunction with bonus depreciation. And, if your vehicle is used 70% for business, then you can write off 70%.

But this only works with a “heavy vehicle.” If you don’t have a heavy vehicle but use your vehicle for business purposes, you can still get a deduction, it just won’t be as much. You don’t even need to pay cash for it. You can finance it and still get that write-off.

But here’s something that can cause a little problem: What happens when you sell the vehicle?

Well, I’ll tell you: Before you sell, you have to calculate how much of a “gain” you’ll have.

Estimated sales price: xx,xxx

Less: Cost of sales ( x,xxx)

Less: Basis ( 000)

Gain: xx,xxx

Gain is taxable. In the past, it was possible to trade in your vehicle for a new vehicle. It was a “like-kind” exchange for vehicles. Effective 1/1/2018, like-kind exchanges only worked for “real property.”

If you “trade in” a vehicle, the value given to the old vehicle is taxable.

Another strategy is to distribute out the vehicle at fair market value. It’s distributed to a business owner.

Of course, this only works if you have a pass-through entity.

If the vehicle got hard use and/or a lot of miles, the vehicle’s fair market value will be lower. Look up the value using the Kelley Blue Book. The FMV could be taxable to the shareholder or could be treated as a payment against a shareholder loan.

These are the kinds of analyses that we can make for you — and help you to plan for so that you can get on the path to business solvency.

And look … I write about many things in these notes — from adding to your revenue line (sales, marketing, etc.) to all of the many other items that matter to you and other East Los Angeles small business owners.

But one of the BEST ways to grow your bottom line is to avoid all of the unnecessary expenses and taxes, which so many Southeast Los Angeles County businesses end up paying, simply because they didn’t plan ahead of time.

Tax planning is our passion here at Uplevel Business Services.

When I meet with a business owner, I often wear many hats — CFO, Marketing Advisor, COO, etc. — truly whatever fits the need of my client most precisely.

Because business owners can make rash decisions in times of perceived crisis (like during “tax season”) — they often have unforeseen complications down the road. All of which gets in the way of achieving business solvency.

Let’s get ahead of the process for you, uplevelservices.com/contact/schedule-an-appointment/.

Warmly,

Chris Gelfuso

uplevelservices.com/contact/schedule-an-appointment/

 UpLevel Business Services 

Chris Gelfuso’s Insights on Financial Planning for Business Owners

Fri, 06 Feb 2026 02:59:41 GMT

UpLevel Business Services Last weekin the start of my series on financial planning for business owners, I got a little carried away by all of the talk of “independence.” So, I took the opportunity to ask you a simple question:

Are you achieving the independence you want in your business?

But there’s another side to this question that you should consider, and it’s this:

Have you considered paying yourself more out of your business?

In some cases, it actually might make more sense to pay yourself less — but bring home more at the same time. It all comes down to starting on the right foot when it comes to financial planning for business owners.

If you’re not clear on how you could accomplish that, then reading this blog right now could be very important.

We spoke last week about cost basis, but these considerations are just one aspect of financial planning for business owners like you who are growing the tax-profitability of your business.

When I meet with a East Los Angeles business owner, I often wear many hats — CFO, Marketing Advisor, COO, etc. — truly whatever fits the needs of our client most precisely. Because business owners can make rash decisions in times of perceived crisis (like during “tax season”) — and they often have unforeseen complications down the road…

Which is why it is critical that we take a look at how things are set up for you and your East Los Angeles business for the rest of 2021. Here in the middle of summer (and BEFORE the fall rush) is the perfect time to take a clear-eyed look at things and plan for the best outcome for your business come January.

With almost-certain-to-be-drastic changes on the horizon, there will be expiring opportunities for Southeast Los Angeles County businesses to save on their bottom line as it relates to tax and other aspects of their financial picture.

Frankly, we’d like to avoid all of the unnecessary expenses and taxes which so many Southeast Los Angeles County businesses end up paying, simply because they didn’t plan ahead of time. Or it could be as simple as saving on expenses — all with the goal of paying yourself MORE, however you get there (which, as I mentioned, could be just what you need this year).

Or these upcoming changes could mean that we want you to pay yourself less.

But we won’t know until we talk.

Warmly,

Chris Gelfuso

uplevelservices.com/contact/schedule-an-appointment/

Uplevel Business Services

Chris Gelfuso’s Business Negotiation Skills FTW

Fri, 06 Feb 2026 02:49:09 GMT

Alright East Los Angeles business owners, we’re going to move aside from tax-related things today (though there will be PLENTY to talk about as Congressional plans unfold) … and circle back into the nitty-gritty of how business works and share with you some business negotiation skills we’ve learned over the years.

I write about this stuff because I don’t see a business relationship as merely transactional; we’re here to serve and advise Southeast Los Angeles County business owners in a variety of situations.

Occasionally, we’re pulled on to work through business valuations, M&A transactions, etc. These are inherently complicated situations, of course … and they’re also inherently adversarial.

It sure would be nice if business deals like these could always be amicable, and like playing pattycake … but sometimes business negotiation skills require that you strap on the armor and battle a little. And not just when it comes to buying or selling a business — this adversarial dance comes into play a great deal in the course of a business day.

In which case, I have thoughts for you today…

Chris Gelfuso’s Insights on Reducing Business Expenses

“Discussion is an exchange of knowledge; an argument an exchange of ignorance.” – Robert Quillen

No matter what industry you’re in, or how far you go in your career, the ability to effectively negotiate can make the difference between success and mediocrity.

Whether it’s a multimillion-dollar contract, a job offer, or a luncheon, here are some trenches-tested business negotiation skills that will bring you or any other Southeast Los Angeles County business owner closer to your ideal outcome:

Know what you want in advance. Don’t go to the table without a clear, realistic idea of what you want to achieve. It will help you negotiate with confidence.
Ask for what you want. Don’t be afraid to make the first offer. You’ll set the tone for the discussion, and studies (and my experience) suggest that the negotiator who goes first usually comes closer to getting what he or she wants.
Understand what your partner wants. A successful negotiation should satisfy both sides. Instead of trying to crush your competition, find out what he or she hopes to get, and try to work together toward a solution that works for you both.
Don’t concede unilaterally. Usually, one side or the other has to give something up. If you do that, be sure to get a comparable concession from the other person. Giving away something for nothing will be taken as a weakness to be exploited.
Don’t rush. Time can be your friend if you’re willing to wait for the right deal. If the other side senses a deadline, he or she may be motivated to hold out until the last minute or try to force you into accepting unreasonable terms. Be patient and let the time pressure work against your partner.
Be ready to walk away. This can take a certain amount of courage, but it’s necessary to avoid being backed into an agreement you don’t want. If possible, keep an ally in reserve–someone with the power to approve or reject the deal. This can give you an out if you need to turn down a deal or motivate the other side to provide you with a better offer.

If you’re a East Los Angeles business owner getting into negotiations and want a little more of our wisdom to help you brush up on your business negotiation skills, let’s chat about it:

uplevelservices.com/contact/schedule-an-appointment/

To getting things done,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Year-End Business Tax Strategy for East Los Angeles SMB Owners

Thu, 05 Feb 2026 10:38:50 GMT

There are many of our clients for whom this time of year is like their version of the Super Bowl. Some East Los Angeles businesses are earning 30-50% (or more) of their yearly revenue in this one month.

Others … well, this is a normal month — except of course for all of the holiday craziness.

But for ALL of our clients, this is a time where you can bring home some serious bacon.

And one way you can do so is by making some tax moves before the clock strikes 12 on New Year’s Eve.

Now I get it … the rush of customers and clients, strange hours, extra errands: It’s a tough time of year to think about tax.

But the calendar waits for no business, and time is getting short to plan your moves.

If you want to talk all of this through and get ahead of the game while you can, we’re right here:

uplevelservices.com/contact/schedule-an-appointment/

In the meantime, let’s dive in.

Year-End Business Tax Strategy for East Los Angeles SMB Owners

“We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” – Winston Churchill

Get your tax documents together to back the tax moves we talk about here and any others you might take. Consider temporary bookkeeping help through the end of this year and the beginning of 2022.

Year End Business Tax Strategy #1: You’re the boss. If you have employees, you have some special tax preparations to think about concerning tax preparation this year. For one, if you have employees who worked remotely, you should find out ASAP if new laws in the states where these employees worked will create reporting and payment requirements for employment taxes.

The end of the year is also a great time to make sure you’re getting the biggest tax bang out of your company’s retirement plan, anything from a SEP IRA to a Solo 401(k) to the combination of a 401(k) with a defined-benefit pension plan. Believe it or not, you have until the extended due date of your 2021 federal return to establish a qualified retirement plan and fund the plan for this year.

And oh yeah: If you took advantage earlier this year of deferring payment of your portion of Social Security payroll tax liabilities that would have been due from March 27 through Dec. 31, get ready to pay half that deferred amount by the last day of 2021.

Year End Business Tax Strategy #2: Timing’s everything. While we’re on the subject, wringing the most out of the business tax system often comes down to two things: deferment or acceleration.

If you think you’re going to be in a higher tax bracket next year, do all your billings soon and collect on as many as you can before the end of 2021. You want that money sooner so you can be taxed on it in 2021.

A much higher rate on long-term capital gains is also making its way steadily through the catacombs of Washington lawmaking – and since gain on the sale of a business or investment property is generally taxed at this rate, closing such a sale before year’s end might be the safest call.

Year End Business Tax Strategy #3: You bet your assets. There’s no sign that this goody is going to change, but you should know that 100% first-year bonus depreciation is available for qualified new and used property acquired and placed in service in calendar 2021. You might be able to write off the entire cost of assets that you add this year. Regarding vehicles, passenger cars that your company puts into service in 2021 have limited deductibility, but SUVs, pickups, and vans don’t. What a deal.

Or is it? This brings us to a key concept of tax planning. Examine tax breaks for whether they’ll continue: Will they be around next year? Will your tax rate be higher in 2022? You may want to wait and get the break then to lower your 2022 taxable income.

Year End Business Tax Strategy #4: It’s your loss. The pandemic might have made this … well, let’s call it a “robust” area of activity for some businesses in recent years. Hope you weren’t one of them, but if you did get dinged on a few deals there are definitely some ducks you want to get in a row regarding losses.

Did you have bad debts in 2021? You can get a write-off if that debt is wholly uncollectible by the end of the year. Damaged or abandoned property can generate ordinary losses for specific assets; so can some insolvent subsidiaries.

Also, make sure that your business has filed claims for all net operating loss (NOL) carrybacks. You still have until Dec. 31 to file for NOLs originating in 2020.

Year End Business Tax Strategy #5: Credit due. The taxman isn’t completely without heart, and the feds, along with a lot of states and local governments, offer a lot of tax credits for things like research and development, innovation and technology, renewable energy, and investing in low-income communities.

Stroll back through your 2021 memory lane to make sure you’re claiming all the tax credits you might have coming – and, just as important, begin eyeing possible tax credits for your activities planned for 2022.

This is just a sample of business tax strategy to help you save before the end of the year. We can also discuss if your East Los Angeles company is the right kind of business entity for the best tax leverage or how our good state’s taxes might influence your moves between now and New Year’s.

Give us a buzz. We’d be happy to talk more about the details – and about you. Happiest of holidays.

uplevelservices.com/contact/schedule-an-appointment/

To more holiday bacon staying in your pocket,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Chris Gelfuso’s Insights on Reducing Business Expenses

Wed, 04 Feb 2026 16:05:38 GMT

No matter how far around the block customers are waiting, in business, only one line counts.

The bottom one.

That’s why reducing business expenses is critical.

Getting a grip on the costs of doing business brings you benefits both short- and long-term. “Cost controls” generally mean saving money (who doesn’t like that?) and laying the foundation for greater efficiency and profitability in the future.

But how do you start?

Well, the good news is that here at Uplevel Business Services … we eat this stuff for breakfast.

Chris Gelfuso’s Insights on Reducing Business Expenses

“There are so many things hiding in plain sight that are routinely pointed out to us to no avail.” – Megan O’Grady

You have two kinds of basic costs in business: fixed and variable. A fixed cost could be the monthly payment for your long-term lease. An example of variable costs might be what you pay a supplier.

So, some great ways to start reducing business expenses is by looking at the financial blueprint of your business. All budgets in order? Does every department know what they have to spend? More to the point, do you know what they have to spend?

Next, make sure you have a good reason for reducing business expenses before you start to implement cost controls. Why are you trying to save cash? Looking to save in one area to spend (and improve, you hope) another part of your business?

Set up a spreadsheet with one axis for your departments and another for expenses. Assuming no one figure leaps out at you, you’re off and running.

Question the prime suspects

Reducing business expenses is easier in some areas of your East Los Angeles business than others — staffing, purchasing, and property, to name a few. (You’ve probably got your own list in mind.) Starting to reduce business expenses first means examining each of these areas.

Staff. Two standbys might help your East Los Angeles business here: outsourcing or turning to freelancers to reduce FTE staff, and using technology to do the job of people. Check standards of your industry, too, to avoid overpaying even in this tight labor market.

Right out of the gate these seem like tough decisions. But one big step in starting to reduce business expenses is scrutinizing all aspects of your Southeast Los Angeles County business, with the current bottom line and eventual profitability your highest priorities. It’s not fun. It is business ownership.

Purchasing. Are your suppliers cutting you the best possible deal? Is there another supplier just as good, but cheaper? There’s strength in numbers when buying, too. Can you partner with other East Los Angeles businesses and get yourself volume discounts?

Property. This category is a moving target right now. As businesses continue to recover and resume more normal operations, one question on everyone’s mind is whether recent work-from-home practices can continue.

You’ll have to answer this one for yourself and your business/industry, but can some of your employees continue to work from home to cut your office/workspace expenses? Don’t forget to factor in utility costs – sometimes there’s cash to be found in just turning off the lights.

These are just a few examples of areas that could be overspending. One giant red flag: Is any area of your business running over its original budget?

Who to bring in

Reducing business expenses takes a team.

Your managers and employees, for instance, are boots on the ground for your budgets. Ask them where to save money and time. You’re also more likely to get their buy-in if you’re open and honest about the process right from the start.

Your customers know more about your products and services than anyone. Ask them what you offer that they never need or use (no need for you to keep paying for that). Suppliers and vendors probably work with your industry a lot; ask their opinion, too.

Then there’s the consultant question. An objective third-person is great, but consultants aren’t cheap. And even the best of them often produce reports that go on a shelf and nobody reads.

As always when hiring most professionals, go with references from others in your industry. Remember to negotiate their fee.

Always remember that you’re not trying to control costs in a vacuum. You have to identify what else will be impacted in your Southeast Los Angeles County business if you decide to reduce business expenses. Will a cutback create a problem elsewhere?

As you can see, this job is more than setting up a spreadsheet. Reducing business expenses is a never-ending job, but this should get you started on the process.

If you’re wanting somebody who can take an objective look at your books and set them up RIGHT — to control for the proper things — let’s chat about it:

uplevelservices.com/contact/schedule-an-appointment/

To your bottom line,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

A Financial Systems Check-Up For Your East Los Angeles Business

Wed, 04 Feb 2026 15:58:42 GMT

Your East Los Angeles business obviously makes and spends money. The pluses and minuses add up (you hope) to being able to stay in business, and a look at the books tells you if your East Los Angeles business is doing okay or headed for trouble.

What are your books telling YOU?

In our experience, it’s often the company’s financial system (or lack thereof) that makes the answer easy to discover or downright difficult.

Have you looked at your own business’s financial system lately? Would you know how to read between the lines to interpret what you see there?

Because a financial system for a East Los Angeles business should provide a clear answer to that question. Such a system helps you function and takes the form of different records that let you — and such others as investors, lenders or auditors — see how your business is doing.

Let’s take a closer look at what folks like us will be looking for, shall we?

A Financial Systems Check-Up For Your East Los Angeles Business

“I value self-discipline, but creating systems that make it next to impossible to misbehave is more reliable than self-control.” – Tim Ferriss

First, a definition of terms to get on the same page. What you bring in and what you spend travels under a few different names.

Bookkeeping. Aka recordkeeping, bookkeeping is the foundation of any business financial system and lets you keep tabs on what’s flowing in either of the two directions that money takes in your business (in your door and out your door).

Depending on the size and complexity of each business, we’ve seen literal books kept, even handwritten, in a ledger or loose sheets of paper. You can also create simple electronic ledgers using Excel or some other spreadsheet program, or using a function in of the simpler business accounting software packages.

Invoicing. First step in generating income is invoicing. You must get paid.

The invoicing segment of your system should accomplish three things (these aren’t complicated):

Ensure that you get paid in a timely way.
Be something that you don’t need to spend too long maintaining
Communicate clearly to you and your East Los Angeles clients. (Is the amount the customer owes front and center on your bill?)

While most businesses include due dates on their invoices, many do not state their consequences for late payment. And how do you know it’s being delivered? Get a dependable delivery system: beyond snail-mail, a lot of businesses use email with a read receipt.

Income. Today there are a dizzying number of ways to get paid. Cash or checks remain okay for many businesses — though as always be sure to have safeguards to validate personal checks. You can use electronic transfers and payments direct to your bank, or you can use online payment services such as PayPal or Venmo.

Your payment policies can be more complex. These are the details of your payment schedules and discounts. For instance, does your customer get a discount for paying early or incur an extra fee for paying late? Refund policies are also key: spell them out clearly and completely because often there’s eventually conflict in a refund or return.

A word of caution here: managing cash flow is another part of a financial system, and one that can cause confusion.

Cash flow isn’t just income and outlay, but a matter of your day-to-day liquidity. If your business needs something, do you have the cash to pay for it? Cash flow is distinct from profitability, which tends to be more long-term. Managing cash flow also means having a sense of timing, knowing if you can spend cash against income that isn’t actually in your account yet.

Filing. Your financial system can’t exist without good records: the bills, receipts, invoices, and many many many other documents that pour into your business. You need to keep these on hand and in clear order for a set period.

You can keep paper copies in a filing cabinet, or go digital and scan and store documents in the cloud or on such external media as thumb drives. Most companies these days pick the digital option for convenience, space savings, and, hackers aside, security.

The taxman cometh. One more reason to keep good records is taxes. Good document management saves the stress of scrambling for records when it’s time to prepare your tax return for filing — not to mention backing up your argument in a dispute with a tax authority like the IRS.

Often storing documents is the least painful of preparations in this segment of your financial system. The bigger challenge is usually paying the taxes.

It’s key that your financial system can help you estimate and bankroll for federal, state, and local taxes. Once or twice a month you will need a good system to check the books and either set the money aside or send the amount due. Mess up in this part of your plan and you can face fines (or worse).

Financial systems differ with each company. If your business needs help with this, let’s talk: uplevelservices.com/contact/schedule-an-appointment/

To making business easier,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

A Small Business Growth Strategy for East Los Angeles Business Owners

Wed, 04 Feb 2026 15:50:03 GMT

We really loved watching the Olympic games the past few weeks. There was so much to see, be inspired by, and even something to learn about growing a small business.

Yep, you read that right. Hear me out…

It’s so hard to appreciate the amount of training and work that goes into one ten-second race. We here in East Los Angeles only get to see the ten seconds. But these athletes have been preparing for years for those ten seconds.

They’ve learned what their body needs to get it ready for its peak performance. And here’s the tie-in: a high-performing business needs the same kind of understanding.

Think about the questions you ask yourself about your Southeast Los Angeles County business every day: What’s coming up that will impact our cash flow? What’s our schedule to pay off debt? Are we on track to avoid tax trouble? How can we find time for those projects we’ve wanted to start?

It all takes time, experience, and intentional planning to build.

Your business has two pulses. One for your money and one for your future business goals. Getting a handle on both opens the door to short-term success and long-term profitability.

The best way to answer these and other questions is to create a schedule (a training schedule, to continue the analogy) around the rhythm of your business… a very important small business growth strategy.

A Small Business Growth Strategy for East Los Angeles Business Owners

“Rhythm is something you either have or don’t have, but when you have it, you have it all over.” – Elvis Presley

Good businesses use strategic planning (probably an annual process) that involves activities happening by a set date. What are those dates in your East Los Angeles business? How do you and your team work toward them?

That’s your business rhythm. And establishing a rhythm is a key small business growth strategy.

Basically, you’re trying to map the big events of your business — including deadlines, activities, and development opportunities — to make sure your entire staff is on the same page of the calendar. This helps your team collaborate and reduce redundant tasks and lets you see what your business must accomplish over the coming year and beyond.

(You can pick any length of time you want, but a year is generally the easiest short-term period to examine).

Let’s take your finances first. Your long-view aim is to grow profitability. It’s hard to do that, though, without a firm view of your current numbers — and the rhythm of when those numbers become available.

Are you getting a look at final numbers as fast as possible? When do the books become final so you can see if everybody’s staying on budget? Do you get financial statements in time to act on them, or are they stale when they hit your desk? (Maybe it’s time to bring your finance team in for a chat.)

Now, look through your past calendar to find milestones for your business over the previous year. You’re looking for events, initiatives, product or project launches … anything big that requires work beforehand. Notice when planning started for each and whether you think the team involved had enough time to get the job done.

If they didn’t, you’re about to tinker with the rhythm of your business.

Leverage the calendar

The next stage of this small business growth strategy involves setting targets that build toward objectives, monitoring progress using financial benchmarks, and adjusting procedures as needed. (Again, your fiscal calendar may have a lot to do with this.)

Let’s say you want to expand into a certain market segment but have been too slow and have lost ground to competitors making the same move. We might want to set target deadlines to begin networking or advertising in that segment, followed by monitoring to make sure you hit the deadlines as well as adding staff or resources if you missed them.

How to accomplish this?

If you’re going to continue developing this small business growth strategy, you first have to make sure the money’s there. Everyone should have a realistic budget (and agree to stick to it).

Next, who needs to do what to make the deadline? You’ll need a timeline of the meetings and other activities and a schedule of tasks (with both short-term and final deadlines). If deliverables are involved in any of the target dates, work backward to set reasonable start dates for those deliverables.

To use our earlier example, if the team designing an ad for that market segment has to get the ad to the East Los Angeles media by a certain date before your sales team hits the field, make sure the designers are coordinating their work in time, and that the sales team is looped in. Everybody has to know what’s expected of them and when.

And share this timeline. You can use anything from an intranet to a bulletin board. Whatever it is, put this timeline calendar in front of your staffers.

The timeline for the above steps could cover the course of a year (as previously discussed). But simply changing the priorities and lengthening the time involved will allow you to set a similar rhythm for the long-term goals of your Southeast Los Angeles County business four or five years out.

How’d it go?

Get 360-degree feedback from your people and from (if any) your peers and supervisors to see what went right and wrong and how to refine the process. Fixing anything broken is important since you’re going to use this plan and rhythm to meet goals next year and in the long term.

We’re happy to discuss this small business growth strategy and any other concerns about your business. Let’s set up a time to talk.

uplevelservices.com/contact/schedule-an-appointment/

To making business easier,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Feel free to forward this article to a business associate or client you know who could benefit from our assistance. While these particular articles usually relate to business strategy, as you know, we specialize in financial management for business owners and families. And we always make room for referrals from trusted sources like you.

Chris Gelfuso’s Latest Updates on Small Business Tax Deductions

Wed, 04 Feb 2026 15:35:59 GMT

One thing you can expect from me come rain or shine is to keep you in the loop on changes to all things tax-related. This week is no exception.

There are some important changes to small business tax deductions rolling out, and not all deductions apply to all East Los Angeles businesses.

But first, let’s briefly talk 2021 Infrastructure bill. While the bill is getting some serious push and pull in the House, there are conflicting views on how this will affect small businesses.

Per the Treasury , the bill will target tax increases on big corporations (raising the corporate income tax — i.e. C-corps — to 28%, among other moves) while protecting the majority of small businesses (around 97%). But opposing sources argue that this doesn’t take into account the many small C corporations that could possibly be affected by the proposed corporate tax rate increase. In fact, according to the Tax Foundation “more than half of the pass-through business income could face tax increases.”

There’s certainly more to come on this, and we’ll keep you posted as lawmakers reach a final decision.

Now, even if we can’t stop a possible tax increase, we can help you with your small business tax deductions.

Let’s jump into the most recent updates…

Chris Gelfuso’s Latest Updates on Small Business Tax Deductions

“You can never be too prepared.” -Regina King

Let’s hear it straight from the FBI: Ransomware is malicious software (“malware”) that blocks you from accessing your computer files, systems, or networks and demands you pay a ransom for their return.

You can download ransomware without even realizing it by opening an email attachment, clicking an ad, following a link or just visiting a website that’s embedded with malware.

You usually discover the attack when you can no longer access your data or you see computer messages demanding ransom.

Headline hacks

A recent report showed that in 2021, a ransomware attack against businesses will occur every 11 seconds. Cybercrooks carry out more than 4,000 ransomware attacks every day worldwide. The big targets are companies in legal, manufacturing, automotive, technology, and healthcare industries. (The first documented ransomware attack, in 1989, targeted the healthcare industry.)

Often the crooks don’t get the sky-high figures they demand, but on average organizations pay a ransom of nearly a quarter-million dollars. Ransoms are usually paid in virtual currency.

Earlier this year, Colonial Pipeline coughed up millions to cybercriminals who’d hacked the oil giant’s network and sent East Coast fuel supplies into a tailspin. And only last week, the global consulting firm Accenture was attacked by the LockBit ransomware gang.

A few cybercriminal gangs are behind many big attacks, such as the increasingly infamous REvil criminal gang of Russia (responsible for Colonial and for JBS Foods, which was attacked this summer and had to surrender an 8-digit ransom).

Another nasty bunch is Egregor, which has connections to Ukraine and has cyber-extorted Barnes and Noble, Kmart, and others, sometimes publishing customer data on the dark web.

Think you’re too small to get hit? About six weeks ago, a global chain reaction affecting thousands of businesses from pharmacies to grocery stores started with a back-door hacking of a common American software that all those businesses used. This shows that your business may be vulnerable in ways you don’t even realize.

Ransomware defense steps you can take

It could be only a matter of time before you and your Southeast Los Angeles County business have to deal with this crime. And a ransomware attack can really hurt your business, costing you both dollars and customer confidence even if you don’t pay a ransom.

– Your best first ransomware defense is common sense. Download or open nothing you’re unsure of.

– Keep your operating systems, software, and apps strong and updated, and make sure your anti-virus and anti-malware defenses are set to automatically update and scan your systems regularly.

– Backing up data remains critical. Whether you use external media like thumb drives or back up in the cloud, double-check that those backups were completed.

(Note: If you do back up using a cloud solution, you may be worried about the tech company being hacked. That’s a legit concern, but agreements with these companies often include responsibility clauses in case of a cyberattack. Check your contract. Also, cloud companies often have firewalls and other security far superior to what your company might be able to afford.)

– Layout a plan for your company’s response to a cyberattack. Details here include who on your staff will be notified, as well as when and how; how to contact your insurance company and law enforcement; and prepared language to notify customers. (Most companies have used phrases citing their regret for the attack and that they moved quickly to address it.)

– If you speak to your insurance carrier about coverage for a ransomware attack, expect a lot of questions about your cybersecurity – and talk of higher premiums. The insurance industry is still pretty new to this particular risk.

It happened anyway – now what??

You come into work one morning and find your data locked and some foul-looking screen telling you to fork over a ton in Bitcoin if you ever want to see your business info again. Don’t panic, for starters.

Unplug your computer and all network devices, including remote ones. Ransomware can spread fast.
Call the cops. Reporting to authorities ASAP helps your investigation and, probably, your insurance coverage (if any).
Try to purge the ransomware. Consult your IT specialists and your system vendor. There are solutions out there, and many work.

Don’t believe this cyber-danger will simply go away. If we can offer any help on protecting yourself, please let us know.

Besides providing some ransomware defense steps, here’s what we are EVEN better at helping you with: protecting your business from financial vulnerabilities. Whether that’s leaky books or a future tax-related disaster … we can spot problems coming from a mile away.

If that’s something you want in your corner, let’s chat about it:

uplevelservices.com/contact/schedule-an-appointment/

To your bottom line,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Ransomware Defense Steps to Protect Your East Los Angeles Business’s Computer Systems

Wed, 04 Feb 2026 15:31:12 GMT

No matter your line of work, your computer might be one of your most glaring vulnerabilities … and it’s one that too many East Los Angeles business owners I’ve worked with don’t fully address.

Even if you work with your hands, and you’re a sole practitioner (a contractor, a landscaper, a mechanic, etc.) … the little computer in your HANDS might hold the keys to your business.

And whether you care to think about it or not, there are bad actors out there who want to break into it.

One of the ways they are increasingly doing this is a nasty little thing called ransomware.

So, as someone who cares deeply about YOUR business in its every dimension, I wanted to take a few minutes to give a rundown of known culprits and their recent attacks, as well as some ransomware defense steps, to help combat any possible breach of your Southeast Los Angeles County business’s data.

(And yes, I’m keeping a sharp eye on the doings in Washington as it relates to this infrastructure bill … as of this writing, it has NOT yet been signed — but when it is, I’ll address what business owners need to know).

Ransomware Defense Steps to Protect Your East Los Angeles Business’s Computer Systems

“You can never be too prepared.” -Regina King

You can download ransomware without even realizing it by opening an email attachment, clicking an ad, following a link or just visiting a website that’s embedded with malware.

You usually discover the attack when you can no longer access your data or you see computer messages demanding ransom.

Headline hacks

Often the crooks don’t get the sky-high figures they demand, but on average organizations pay a ransom of nearly a quarter-million dollars. Ransoms are usually paid in virtual currency.

Another nasty bunch is Egregor, which has connections to Ukraine and has cyber-extorted Barnes and Noble, Kmart, and others, sometimes publishing customer data on the dark web.

Ransomware defense steps you can take

– Your best first ransomware defense is common sense. Download or open nothing you’re unsure of.

– Keep your operating systems, software, and apps strong and updated, and make sure your anti-virus and anti-malware defenses are set to automatically update and scan your systems regularly.

– Backing up data remains critical. Whether you use external media like thumb drives or back up in the cloud, double-check that those backups were completed.

It happened anyway – now what??

Unplug your computer and all network devices, including remote ones. Ransomware can spread fast.
Call the cops. Reporting to authorities ASAP helps your investigation and, probably, your insurance coverage (if any).
Try to purge the ransomware. Consult your IT specialists and your system vendor. There are solutions out there, and many work.

Don’t believe this cyber-danger will simply go away. If we can offer any help on protecting yourself, please let us know.

If that’s something you want in your corner, let’s chat about it:

uplevelservices.com/contact/schedule-an-appointment/

To your bottom line,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Disaster Recovery Planning Your East Los Angeles Small Business Probably Needs

Wed, 04 Feb 2026 15:25:52 GMT

The phone rings in the middle of the night and a voice says your office is on fire. Early on a long weekend, that old pipe in the back finally bursts and no one will see the water for days. Or suddenly the Weather Channel’s saying a hurricane is barreling in your city’s direction.

Oh, it’s always the other guy, you say? Ask the folks in Louisiana and Mississippi this week, or those out West most of this summer.

Nobody in New York City ever used to even think about flash floods …

According to FEMA, about *half* of small businesses never reopen after a disaster. Worse yet, one in four fails within a year, and nine out of ten shut their doors within two years. Not odds you want to bet against.

So what do you do? If you’ve thought ahead, you pull out your disaster recovery plan for your East Los Angeles small business.

Disaster Recovery Planning Your East Los Angeles Business Probably Needs

“Success is the residue of planning.” – Benjamin Franklin

When disaster hits, you have two jobs:

Stay open that day and
Stay open in the days ahead.

So, let’s take a look at the difference between a business continuity plan and a disaster recovery plan for your Southeast Los Angeles County business, and why and when you need both…

First off, both plans are actual documents (and they work best if you develop and use them together – in fact, a lot of people use the terms interchangeably). Unlike all those other reports you read once and then buried, these plans you pull out once a year to keep up to speed on preemptive approaches – in other words, you’re not waiting for those floodwaters to seep under your door before you know what to do.

Your business continuity plan outlines how your business will keep going during a disruption. It includes procedures and instructions you and your team will follow when bad stuff drips (or gushes) down. Disaster recovery is how you’ll pick up your business again after a disaster… how you’ll get the doors unlocked… how you’ll start seeing customers again in the days ahead.

Seems like common sense, right? But can you believe that a survey last year found more than 50% of companies don’t have a business continuity plan? Or that one in five execs of small and mid-size businesses don’t have a recovery plan?

It’s difficult to imagine why anyone would risk the lost business, make themselves vulnerable to legal risk, a damaged reputation, or even possible fines and the loss of a business license.

Just keep going

To put it in simple terms, your business continuity plan looks like driving to the gas station while your engine warning light is still on — you’re trying to keep things going while the emergency is still happening.

It doesn’t have to be a storm or wildfire on national news, either – you can even get hammered by something as small as a local power outage. The key is to assume that (for a little while) your equipment, workforce, office or workplace, third-party vendors, and just about everything else are unavailable.

Here are a few questions you’ll want to answer on this front:

– What jobs around your business can you NOT survive without, and who does those jobs?

– How are you going to contact your people? Calling on the phone is everybody’s first thought, but don’t forget about texting and social media. You can keep staff updated on your Facebook page if you need to.

– Who should your employees contact first? What shouldn’t they do? (Want ‘em talking to the local news?)

– How will you keep phones and computers/servers working? Are there laptops somewhere else you can run on for a while?

– Will you have to move your business, even temporarily? Where could you go?

Your new normal

Your disaster recovery plan tells you how to get your business back to normal as fast as possible.

For instance, your recovery will probably hinge on technology. Part of your plan could be laying hands on your backup files that are in the cloud or on a portable hard drive that you keep somewhere far from your office. What’s your long-term plan to finance ruined computers?

And of course, in this wonderful world, not all disasters involve water, fire, or wind. Suppose your business gets caught in a public relations mess… a bad lawsuit or a data hack. Part of your recovery plan should cover what statements you’ll make (deny all knowledge, we’re investigating, we can’t comment at this time, etc.)

Both is better

A lot of people combine the business continuity and disaster recovery plans. Suppose your inventory goes up in a warehouse fire. ‘Continuity’ means you call all your employees and vendors. Your recovery involves telling staff what to tell customers and notifying the right people at your insurance company.

The point is, both types of plans work to keep you ahead of a problem. Do not wait to make them.

If we can help let us know. You can even make that part of the disaster recovery plan for your small business.

If that’s something you want in your corner, let’s chat about it:

uplevelservices.com/contact/schedule-an-appointment/

To your bottom line,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Cloud Computing Benefits and Risks for East Los Angeles Businesses to Consider

Wed, 04 Feb 2026 15:07:08 GMT

In the olden days, East Los Angeles business owners kept track of their records by hand in the old reliable notebook or ledger. So what an innovation it must have seemed to move business information to a floppy disk that could plug into a computer.

The disks got smaller (and a lot less floppy – thankfully), but the idea fundamentally remained that be it floppy, hard drive, thumb drive, or even your own server, your customer and other business data were where you could locate it, most likely right on your premises.

I personally know of many businesses that invested quite heavily into onsite server architecture and maintenance so they could keep up with the ever-increasing piles of DATA.

Then, all of this was overshadowed by the cloud… Let’s take a look at cloud computing benefits and risks…

Cloud Computing Benefits and Risks for East Los Angeles Businesses to Consider

“Saying that cultural objects have value is like saying that telephones have conversations.” -Brian Eno

Basically, storing data in the cloud means uploading it via the internet to a third party’s electronic storage. You access the information there any time you want and somebody else has the worry of keeping your information accessible and safe.

(“Cloud” supposedly comes from a cloud symbol to represent the internet on flow charts half a century ago.)

Think of the cloud like a utility. You pay somebody to deliver electricity to your office even though you could try powering the place yourself with your own generator. As long as you keep the generator running, you’ve got power and are able to remain independent of using an outside provider.

But suppose a fire or a flood destroys your generator? Out go the lights. Substitute “server” or “on-premises hard drive,” and that same flood or fire destroys your data. Who wouldn’t want to mitigate that risk?

But as with all risk management, there are plusses and minuses – and that is also true of using the cloud. So, let’s talk about some cloud computing benefits and risks for East Los Angeles business owners.

The good points

No hardware headaches. Storing data takes expensive hard drives and other hardware. All you need to store data in the cloud is an excellent internet connection (and of course a good computer – which you’d need even if you didn’t use the cloud).

Providers by their nature must have the best equipment; costs of maintenance and repair also flows to them. Scalability becomes easy from your perspective, and, despite startup costs, long-term savings can also add up as you pay only for the cloud services you use. Just make sure upfront that it’s clear what services you’ll be able to use.

Work on the run. Anytime access means you and your staff can work on business data anywhere from any device — which also means improved productivity.

Support system. With the right cloud provider, you just hired a first-rate tech department. Most services have help available to you 24/7 – and because providing service to many clients is the providers’ bread-and-butter, their IT people are generally really good.

Similarly, the cloud provider also must handle all the outage dangers and security updates (see below). They usually have a lot of backup servers in different locations to guard against downtimes and disasters.

Risky business. If you’re leaning toward cloud storage, this can be the clincher: The provider has the burden of security. The one who’s really hurt most by a hack, the provider, will and can invest more than you in firewalls, encryption, backup servers, and other cutting-edge cybersecurity.

Now for some cloud computing risks…

Troublesome questions

Bad connections. As I said, to access your cloud service, you’ll need an internet connection. Break that link for whatever reason, and you can’t get to your data – and this “downtime,” even for a short period, can cause a lot of pain.

Control issues. Having someone else oversee and maintain the cloud infrastructure that houses your data can make you feel you’ve lost control. You populate the infrastructure but have little administrative control over how the data is stored. How easy is it going to be to migrate your data? Are you subject to vendor lock-in?

Spotty support. That top-notch tech crew we talked about: Do you have access to them or are you expected to first try endless FAQs and online DIY fix-its?

Security. Do you really want someone else guarding your data, even if their controls, firewalls, and other security measures are probably far superior to yours? Research does show that most data breaches and cyberattacks come down to customers’ mistakes and human error, so the provider can probably take good care of your data.

But what if they can’t? Who’s liable? What are the damages and coverage? For that matter, what happens to your data if your provider is acquired by another company? Have these matters spelled out in your contract ahead of time.

Sending your data to the cloud is appealing, but it also comes with some catches. And before you up the ante on storing your business data, you’ll want to think through some of these cloud computing advantages and risks. If you want some help with making the right decision for your East Los Angeles business, let us know.

Another thing we can help you with is protecting your business from financial vulnerabilities. Whether that’s leaky books or a future tax-related disaster … we can spot problems coming from a mile away.

If that’s something you want in your corner, let’s chat about it:

uplevelservices.com/contact/schedule-an-appointment/

To your bottom line,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Things To Consider Before Selling Your East Los Angeles Business

Wed, 04 Feb 2026 14:56:51 GMT

You’ve put in the years, labored long days, sweat the bad times, and high-fived in the good as your business grew. Now, it looks like it’s time to step away into the next life stage, slay the next dragon. It’s time to sell. (You think.)

Whether you’re headed to another career or a seaside retreat, get what your business is worth before you walk away.

Because if you’re not careful, you won’t.

And, by the way, there are TAX implications that will absolutely come into play if you’re considering this. Your entity structure can make a big difference for what is possible. And we might want to consider together what entity formation you’re operating under, if you have this in mind.

Let’s talk: uplevelservices.com/contact/schedule-an-appointment/

And one more thing before I dive in…

Wednesday, September 15th is the due date for third-quarter estimated taxes. If you’re reading this, and it’s already past … don’t fret, just pay it now … there’ll be some small penalties, but nothing crippling. The idea is to avoid LARGER penalties if the clock continues to tick.

Things To Consider Before Selling Your East Los Angeles Business

“Everything you’ve ever wanted is on the other side of fear. ” -George Addai

When you’ve been in the grind of running your business for a while, there inevitably comes a point where you begin to daydream about selling your business and moving on. The funny thing is, the actual sale can often show up right out of the blue. And since that’s true, you don’t want to be caught off guard by a lack of preparedness.

Think, what would you want to see if you were the prospective buyer? (Solid numbers, for starters.) How do your assets compare with your liabilities? What’s your income stream?

Make sure your annual financial statements are on hand and up to date showing your financial position, cash flow, and operations expenses. Have a professional (someone like yours truly) review your financial statements going back about three years – which makes for a good-looking record, complete but not too long, especially concerning your profits.

Don’t forget to include more recent financial info like Paycheck Protection Program (PPP) loans, if you had one. (Related to this topic and depending on your business, be prepared to talk with prospective buyers about any recent supply chain troubles.)

This whole process lets you spot and highlight your best numbers for an eventual buyer. More importantly, you can find and fix any money or tax issues – because nothing can kill your deal faster.

Get what you’re worth.

It also puts you in a position to talk up how you beat your competition. By the way, you’ll want industry standards on hand to show how your Southeast Los Angeles County business stacks up – and, more importantly, to make sure you get a good sales price.

What if some of the numbers aren’t great? Then admit it. A buyer worth your time isn’t going to expect perfection in your operation, and it’s way better they hear about a problem from you now than unearth it in their due diligence.

The buyer doesn’t want any surprises during this sale process. You want them even less.

More landmines

Your books are only the start when getting ready to put your business on the market. Here’s what else to do.

Make nice with the taxman. Tax troubles are another surefire deal killer. If you have any doubts with any of the tax jurisdictions you deal with – your state or the dreaded IRS – make a call to see if you can check off that your tax history with them is squeaky clean.

Be sure all of your filings and payment obligations are up to date. Keep your tax preparer in the loop – which leads us to the next possible trip-up.

It’s time you got professional help. Selling your East Los Angeles business is one of the biggest deals of your life. Do NOT risk tackling this without the help of a lawyer and/or tax expert. Remember: Odds are your buyer is going to know more ins and outs of this process than you do and probably with their own professionals advising them. Don’t go it alone.

Ditto with marketing the business sale. Without experts to help, you might find yourself with fewer potential buyers – and you definitely don’t want that.

Your employees aren’t leaving, remember? Do you have key people right now that the business is going to want to keep? Talk early and often with a prospective buyer about how to retain those folks. Sweeten the pot?

This one gets overlooked a lot: If you’ve got a major account that depends on just you, groom an employee now to take it over. Your buyer is going to want to know that losing you doesn’t mean losing that account.

Don’t forget — you do still have a job. Big, life-changing deals are exciting – and distracting. Don’t become so wound up in the sale that you forget the day-to-day management of your Southeast Los Angeles County business. It’s not going to impress the potential buyer if you drop the ball on the current sale or your inventory comes up short because you forgot to place a big order. Force yourself to keep paying attention.

Have a plan. Really, are you ready for this move? How exactly does the sale fit into your plan?

Let’s say you aim to retire. Are you ready emotionally to leave the rat race? Got a plan to fill your suddenly free days? And whether you plan to kick back or immediately go into another business, is this sale going to net enough to meet those goals?

This could be one of the biggest things you ever do, so take the time to think through and prepare for it — and find a professional you can trust to walk you through the process.

We’re always here to help you… and your East Los Angeles business.

uplevelservices.com/contact/schedule-an-appointment/

To your bottom line and a beautiful exit,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Small Business Tax Credit Updates East Los Angeles Owners Will Want to Consider

Wed, 04 Feb 2026 14:28:37 GMT

I wanted you to know about something that came across my desk the other day because it is potentially very good news…

Not many are talking about this, but there have been some MAJOR new Economic Injury Disaster Loan (EIDL) program updates from the SBA…

New $2 million maximum loan size (This is WAY higher than the previous limits). Essentially, if you received an EIDL under the old limits you can apply for loan increases within the EIDL Portal on the SBA website .
There’s now new flexibility on how you can use the loan proceeds. Most notably, you can now use the loan to pay other business debts (previously, you had to “certify” that you would use funds for operating expenses and not pay down debt).

While I like to steer clear from “recommending” that anyone take out a loan, East Los Angeles businesses seeking low-cost access to capital absolutely should be evaluating the EIDL option in light of the new and highly favorable changes.

These are 3.75%, fixed-rate, no fees (if you apply directly through SBA), 30-year repayment term, and no personal guarantee if the amount is $200,000 or less … those are pretty incredible terms.

Thought you’d be interested. (Though the response time on actually receiving increased funds has widely run the gamut, from what I’m hearing. Don’t expect that this will be a “rapid” infusion of cash.)

That’s just one of a few changes you should know about. The rest, I’ll cover below…

Small Business Tax Credit Updates East Los Angeles Owners Will Want to Consider

“I always tried to turn every disaster into an opportunity. ” – John D. Rockefeller

Businesses and their owners the country over have been enjoying some great small business tax credits from the federal government in the last 18 months. But, as 2021 is winding down, it’s important to know that some of them are on their way out.

Small business tax credits soon ending for East Los Angeles employers this year:

The payroll tax credit for the paid leave that employees might have needed over recent months.
The 6-month run for employee subsidies and employer tax credits to help pay for COBRA health insurance.
The repayment period if you were one of those employers who deferred paying their share of the Social Security tax over recent months.

So, let’s start by talking about the Employee Retention Credit (ERC), which has been a tax boon to small and midsize Southeast Los Angeles County businesses trying to keep people on the payroll. Washington looked to keep the ERC available through the end of the year, but the powers that be on Capitol Hill may pull the plug early as part of that headline infrastructure bill.

Nobody knows right now if the ERC or some version of it will stay alive. Stay tuned.

Small business tax credit changes in the pipeline – maybe

Now we come to what might happen. Lawmakers love to change things, and there are proposals right now to do just that to your taxes … and, of course, not always in a good way. You have to plan for a lot of outcomes, sometimes.

For instance, if your company is what’s called “a pass-through entity,” there’s a new bill in Washington you should know about. The Small Business Tax Fairness Act will try to lower the amount of money you can make and still get the tax deduction for your “qualified business income.”

On the plus side, the Act does also look to expand who can take the deduction to include accountants, financial advisors, attorneys, doctors, and other professionals. Please get in touch if you’re one of these companies and want to know more.

Never a dull moment

Recent events have inspired some to think, “I’ve had it. I’m selling my East Los Angeles business and retiring sooner rather than later.” If you’re in this camp, as far as taxes go, you have two choices: Slam on the brakes or put the pedal to the metal.

Crazy, right? But this schizophrenia can be explained because “tax the rich” proposals in Washington want to hike capital gains taxes and kill the step-up in basis (a type of valuation for tax purposes that historically has protected heirs from larger tax bills).

So, you’re stuck. Sell your business down the road, and you could be socked with a big capital gains tax bill. Leave the business to your heirs instead, and the IRS may wallop them eventually because by that time they’ll no longer have the shield of step-up in basis.

What to do about these small business tax credits from the federal government coming to an end? Well, the discussion about the above on Capitol Hill is still, right now, just proposals. That could change any day. Watch for more back and forth in Washington. And, for the rest of us in the real world, more suspense as we plan for taxes.

If you sell online, watch out

Let’s look at state taxes, too – especially if your Southeast Los Angeles County business has joined the e-commerce boom, and you sell over the internet.

You may have noticed that states (and other tax jurisdictions – watch out here for cities and even towns) are always claiming to be short of cash. With not as many people staying in hotels or eating in restaurants over the past several months, that’s a lot of sales tax states didn’t collect.

So, what are they doing about it? Looking around for small businesses that sell more products online. This actually started a few years ago with a Supreme Court case called Wayfair. It basically gave the green light to states to start demanding that if you sold enough in their area, you have to collect and send back to states sales tax on the purchases no matter where your business is.

Sounds simple – except every state and more than a few municipalities around the county have their own tax rates and deadlines for you to file and pay. And they’ve plenty of penalties to whip out if you mess up.

Typically, you do have to sell about six figures annually in the state or have a set number of transactions – but these rules change all the time.

In this and all tax matters, your business is too valuable to leave to chance. Talk to us if you need help with this ever-changing world.

We’re always here to help you with this stuff … and ALL of your business.

uplevelservices.com/contact/schedule-an-appointment/

To your bottom line… and to paying less tax,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Is The Employee Retention Tax Credit Right For Your East Los Angeles Business?

Wed, 04 Feb 2026 14:16:14 GMT

There is a LOT of smoke emanating from Congress right now. As usual, with Congress, there are always rumors and mutterings — what matters is what is actually signed into law.

And we’ll keep you up to date on what you might need to know.

But speaking of Congressional acts that have been signed into law …

Wouldn’t it be great to get money for just having kept your East Los Angeles employees afloat during the last rough-as-nails year or so?

Well guess what? Maybe you can.

Trouble is, Congress may soon take this deal away. Or it may not. Here’s the latest word on that and how you can still cash in – for now.

Is The Employee Retention Tax Credit Right For Your East Los Angeles Business?

“Somewhere, something incredible is waiting to be known.” – Carl Sagan

Late last year the Taxpayer Certainty and Disaster Tax Relief Act of 2020, following up on earlier relief laws, allowed the good folks at the IRS to give East Los Angeles employers like you a real tax break.

The Employee Retention Tax Credit (ERC) is a refundable tax credit – sort of a thank you from Uncle Sam – on the employer share of Social Security taxes that your business pays if you’ve been hit by the pandemic but kept your employees on payroll instead of laying them off.

Here’s how it works: If your East Los Angeles business qualified, you could whack a chunk off what you paid in tax equal to, for this year, 70% of most wages you paid to employees through June 30. This applies to wages and compensation, in general, that are subject to Federal Insurance Contributions Act (FICA) taxes.

How do you qualify? Two ways, primarily: You got dinged in the down economy or the government “closed you down” partially or fully during a particular quarter because of the pandemic.

Under the newest rules, if your business took at least a 20% hit for a quarter in 2021 compared to the same quarter in 2019, you are eligible. ERC regs for 2020 required a 50% decline over the same quarter in 2019 (or a government shutdown). A company can now have up to 500 full-time employees and qualify, up from 100 under old ERC regs.

(Bigger companies can also qualify, but the wage restrictions are a little tighter.)

The newer rules added ERC eligibility for the second half of this year for more businesses like public universities, hospitals and medical-care providers, “recovery startup businesses” that opened their doors after Feb. 15, 2020, and for all wages including for work and for paid time off.

You can only get seven grand per employee per quarter max in 2021 but still, who couldn’t use this kind of cash? Where do you sign up?

Not so fast – enter Congress

Even as we speak, the House of Representatives is batting around the Bipartisan Infrastructure Investment and Jobs Act. It passed the Senate recently and the House is tweaking its own version. What’s that got to do with your tax break for keeping people on the job?

A lot, as it turns out. Capitol Hill is thinking of killing the ERC for the last quarter of this year. Even if they don’t, they might tweak it so your East Los Angeles business can’t qualify. Stay tuned – this could change or all be settled any hour. We’ll keep you up to date.

Back to the future

When the future’s uncertain, reach for the past: You can basically go back in time to apply for the Employee Retention Tax Credit .

For instance, one of the beefs with the ERC in 2020 was that you couldn’t claim the credit if you’d received a Paycheck Protection Plan loan. Late last year, though, the federal Consolidated Appropriations Act changed all that: Suddenly you could retroactively claim the ERC for payroll periods that were not paid with PPP loan money. No double-dipping, as it were.

What’s it matter if Congress kills the ERC for the rest of this year? That’s when “retroactively” becomes a big word – you can amend past returns.

To review: To qualify for the ERC, you had to have gross receipts fall significantly in a quarter of 2020 or 2021 compared with the same quarter in 2019, have operations unusually impacted by government order from the health emergency or you began business operations after mid-February 2020.

Fit any of those? Then no matter what the House does in the coming days/hours/minutes, we can help you retroactively file using IRS Form 941-X (sounds like a spaceship but let us worry about that…) and possibly cash in with an ERC.

Yeah, you have to keep a lot straight to claim this tax credit – it would be no wonder if you’re confused.

But if you think you fit those circumstances in any way, if you want to review your 2020 or 2021 quarterly payroll tax returns, or you know another business owner who could benefit, let’s chat.

uplevelservices.com/contact/schedule-an-appointment/

To your bottom line… and to using the tax code to your advantage,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

East Los Angeles SMB Owners – Don’t Panic About The Business Supply Chains

Wed, 04 Feb 2026 14:07:41 GMT

Remember when the monster cargo ship Ever Given jammed the Suez Canal? After the Given had been stuck just five days, almost 400 other freighters were backed up waiting to pass through the Canal. Experts began predicting temporary shortages of everything from exercise bikes to coffee, cheese to semiconductors.

For once, they were right — and not just because of one stuck ship.

Recent events have proven how the world’s business supply chains can snap pretty easily (even now as I write, dozens of giant freighters wait off the coast of California because there’s no dock space).

And have you been in Costco or Walmart lately looking for toilet paper or toys from China? Sometimes all that happens is a great chance for the store workers to dust the empty shelves and for you to pull out your phone and hope you can find online what you came into the store for.

Well, your customers are no different if your business supply chain is weak. And soon they’re going to take their business elsewhere. Frustration is the one thing not in short supply these days.

But don’t panic. I have thoughts.

Before I get to them, one more reminder that October 15th is the deadline for extended federal personal tax returns for 2020 (for the vast majority of the country).

If you need a quick chat on this, grab time here:

uplevelservices.com/contact/schedule-an-appointment/

Now, let’s talk about those business supply chains…

East Los Angeles SMB Owners – Don’t Panic About The Business Supply Chains

“Teach a parrot the terms ‘supply’ and ‘demand’ and you’ve got an economist.” – Thomas Carlyle

First, as a frustrated East Los Angeles business owner you’re not alone. There are many reasons that stuff is scarce for everybody now:

Higher shipping costs — particularly from China;
Not enough containers to store goods on the freighters (Costco and Walmart have also chartered their own ships to transport goods to secondary ports);
Social distancing restricting ports’ speed unloading;
Not enough truckers to get the stuff on the road even if it does get through the ports;
People shopping again — and in big numbers, suddenly driving up demand;
Rotten weather in a lot of places.

If one thing gets hung up in transit in the business supply chain, then other stuff made from that first stuff gets hung up, too — often stuff your East Los Angelesbusiness needs to function and to sell. Foam for furniture, electronics for cars, chemicals for paint. Prices spike for necessities like lumber for pallets. The dozens of other points in the chain are also vulnerable to labor shortages and other breakdowns.

It’s like getting the kids off to school on a crazy morning: One hitch and the whole schedule can fall apart.

… just like your relationship with your Southeast Los Angeles County customers when they’re staring at your empty shelves.

Seat of your pants

You may find yourself relying on gut feelings and improvising through your company’s supply crunch in the coming months.

Money makes the world go ‘round — and it can make the supply chain go ‘round, too. Don’t spend like crazy, of course, but the hard truth right now is that you may have to pay a little extra to keep supply lines flowing. That means keeping your capital liquid and available as much as possible. Maybe a flexible line of credit can help keep your inventory stocked.

Your other moves:

Buy ahead to anticipate demand (like they’re saying about Christmas shopping this year, “If you see it right now, buy it right now…”). Rent warehouse and other space to shelve overflow inventory.
Keeping your own business supply chain strong depends on shipping. You may have to shell out for priority or “less-than-load” (LTL), a way of getting a small load of specific goods where they need to be that can save money for small shippers like you.
Find additional suppliers or partner with another retailer.
Don’t forget, your customers still like you (at least they will until your inventory runs out…). Ask them what products they want to see more of and less of? Watch your online reviews, too … “They were out of it” is a common complaint you want to avoid or address ASAP. If you’ve got an online business, survey customers electronically.
Keep up with the news. From West Coast pinch points to Costco rationing toilet paper again, this mess changes fast.

It will get better (fingers crossed)

Remember, when the business supply chain breaks, it’s not just your cupboard that’s bare — everybody loses money. And everybody’s struggling to fix the problem.

Managing supply chains is no longer some minor business function stuck in the back office. The big boys have learned the hard way to make it an operational priority — probably for months to come — and give the job the resources it requires.

Your business is in the same boat, so to speak, just on a smaller scale.

You’ll get through this, and we’re here to help you do it.

uplevelservices.com/contact/schedule-an-appointment/

Stay safe and sane out there,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Using an IRS Accountable Plan to Maximize Deductions for Your East Los Angeles Business

Wed, 04 Feb 2026 13:55:58 GMT

Any of you East Los Angeles business owners remember those halcyon days when you could “talk a little business” with somebody while traveling … and then you got to write off the whole getaway on your taxes?

Even if that ever really happened, that ain’t today. Now, the good folks at the IRS pull against their leashes to get at businesspeople who try to finagle an on-the-job tax deduction – and the taxman’s very best friend can be your own sloppy records.

Get yourself an “IRS accountable plan.” (Ahem.)

uplevelservices.com/contact/schedule-an-appointment/

And before I dive into all that, one more reminder that this Friday, October 15th is the deadline for extended federal personal tax returns for 2020 (for the vast majority of the country).

If you need a quick chat on this, use the info above and get in touch.

In the meantime, let’s get your books “on lock” as the young people say.

(Do they still say that?)

Using an IRS Accountable Plan to Maximize Deductions for Your East Los Angeles Business

“It is time to restore the American precept that each individual is accountable for his actions.” – Ronald Reagan

“IRS accountable plan” is a fancy way of saying “Reimbursing your employees — and yourself — without making the taxman mad.”

You and your employees often reach into your own pockets for legit business expenses – sometimes for just a couple of bucks but sometimes for a lot more. Used to be if you had enough of these expenses, you could deduct them on your personal tax return.

Then came the Tax Cuts and Jobs Act of 2017. Maybe you heard about it? Well, it pretty much erased the regular taxpayer’s itemized deductions for business.

But what happens if you still need copy paper or to drive your car to see a client (or for that matter, call a client on your personal cell phone)? Do you just have to eat that cost?

IRS accountable plans are formal guidelines that you create, which explain how you reimburse your employees for expenses and which ones qualify for reimbursement. (Reimbursements for expenses aren’t wages, so they’re not subject to tax.)

Sound good? Can be – but it takes work.

The deduction is in the details

You won’t have to submit your accountable plan to the IRS but, if you want your deductions to hold up to scrutiny (yes, that scary word: “audit”), it’s a good idea to know what your accountant plan should include.

(By the way, we’re going to talk more here about the plan itself than about the deductions themselves.)

First, your “IRS accountable plan” doesn’t have to be written – but why shouldn’t it be? It makes everything clear to everybody in your company – and the IRS respects paper.

Your plan should cover how much time your employees have to submit expenses; how they ask for reimbursement, including what documents are needed; what you’ll reimburse them for; the max that you’ll reimburse; and when employees should give back leftover reimbursement money.

The IRS likes it if your plan also makes crystal clear how the expenses relate to your business. They also have to be substantiated in what’s called “a reasonable period” and your employee has to give back any expenses money they don’t spend in, again, “a reasonable period.”

The IRS does seem to think that 30, 60 or 120 days is “reasonable” depending on whether it’s for your employee submitting expenses, you paying them, or your employees paying back excess.

Some Southeast Los Angeles County biz owners might wonder, “What about small stuff like tips? I need records for that?” Well, the IRS is a little cagey on what they think “small” is. Some biz owners probably think records for anything more than ten bucks is a good idea. Others probably say five.

Don’t guess. Keep everything, take no chances, and just document, baby, document.

Go for the record

Sure, they’re a pain to keep, but detailed records strengthen your case. There’s just no way around that. Keep them with your IRS accountable plan. Get yourself a designated logbook (hey, that’s an expense, too) and keep receipts, bills, and credit card statements. Photocopies will work.

Detail detail detail those expenses: amount, time, place, and reason for the spending. “Twenty bucks for gas” doesn’t fly like “Twenty bucks for gas for this employee, on this day and time, at this gas station, because my employee was headed here to meet this person and here’s exactly how the whole relates to my business.”

More pointers:

If it’s a lump-sum bill, staple on a detailed breakdown of what expenses it covers.
Even if you use the standard IRS mileage rate for employees’ car use, employees still have to report other elements of business driving to you. Get as many details in writing as possible – there’s just no substitute.
Prorate per-diem rates for partial days of business activity for your employees.

Check with us if you have any questions … and keep every scrap of paper for records (and keep it organized if you can). You’ll be glad you did.

If you need help formulating this … well, that’s what we’re here for.

uplevelservices.com/contact/schedule-an-appointment/

To more of your business’s money trickling into the bottom line,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

How East Los Angeles Businesses Can Raise Prices Without Losing Customers

Wed, 04 Feb 2026 13:47:33 GMT

Are you watching your COGS these days?

(I, ahem, hope you know what those letters stand for, because if not … well, then we should DEFINITELY talk. uplevelservices.com/contact/schedule-an-appointment/ )

Has it gone up?

You’re probably not alone given what kind of signals the economy is sending these days.

In which case (and you’ve probably already thought about this), figuring out how to raise prices without losing customers is especially important.

You can ignore the likelihood of everybody looking to cut costs as their COGS increase (if you are B2B), or as East Los Angeles consumers feel the tightening in their wallets as prices go up.

OR (and I like this way better), you can be strategic. So, I thought I’d offer you some ideas today.

How East Los Angeles Businesses Can Raise Prices Without Losing Customers

“Things work out best for those who make the best of how things work out.” – John Wooden

It’s heartbreaking to watch Southeast Los Angeles County small businesses go out of business or not bring home enough bacon simply because they get trapped into thinking about their customers and their pricing in the wrong way. And as such, they end up losing customers.

When you differentiate yourself based on price alone, you simply cannot provide value. You end up competing on the wrong playing field, and it’s not one in which you’re built to win.

Yes, price competitors have been in operation since the days of the Greek agora, but it’s important to understand that if YOU want to build a sustainable, scalable — and, one day, SALE-able — business, a core foundational piece of that puzzle is that you must be charging enough for your goods and services.

Many East Los Angeles small businesses remain in perpetual survival mode because of how they price their products.

They believe their only competitive advantage lies within their pricing, so they run an ever-accelerating race to the bottom.

But even in shaky times (which, if you’re looking at current economic numbers, we are NOT currently facing), people still have money to spend.

So, it stands to reason that if you’re not bringing it in, you’re simply not doing a good enough job showing them that your place of business is the best place to spend it.

You see, it’s all about understanding the specific value you provide. And if you’re not clear on it, your prospective customers certainly won’t be.

So, how can you do better in communicating your specific value? Well, I’ve got three ideas for you today…

How to Raise Prices Without Losing Customers Tip #1: Reassess your primary selling points

Your prospects have no way to know if you are the best option for them. To regular consumers, most options are the same — in almost every industry. When you compete on price, you attract … those who are shopping based on price. And, of course, they see you as “just like everyone else.”

Then the real question is what makes your East Los Angeles business different? And how do you show that to the marketplace? That’s what you need to focus on and figure out how to quickly tell that simple story. Your prospects must turn to you because they trust you and because they see your business as worth the money — not because you’re the cheapest option.

How to Raise Prices Without Losing Customers Tip #2: Tap into customer psychology

Why can Nordstrom charge higher prices for products found elsewhere (i.e. cars, purses, ties, shoes)? It’s because of the VALUE they’ve attached to their brand (i.e. social prestige, enhanced customer service, increased self-esteem). They’ve moved themselves out of the commodity market and into the heart, emotions, and primal urges of their clients.

You need to (and can) do the same thing in your business. Yes, your customer can get a widget or receive a service for XYZ … but what AREN’T they getting when they work with that other option? Focus on identifying these aspects of your offering. Your value is not derived from the “features” of your product or service … it is found in the intangible — emotional — benefits from working with or purchasing from YOU.

How to Raise Prices Without Losing Customers Tip #3: Evaluate your offerings for bundle opportunities

For service professionals, there are only so many hours in a day and you’ll reach an income plateau very quickly when you are billing by the hour. Not to mention that you have to start every month over at zero — and there’s little stability in that. So, my advice? Begin billing on a flat fee/value basis.

If you’re scared to shift, just think of the *value* your customers will experience having a professional using flat fee billing. They won’t be nickel-and-dimed for every phone call, email, and message that comes through the office. They can communicate with you as they wish without fear and they can pick their price point of choice if you have multiple flat-fee options. Many people are willing to pay more for certainty. It’s a win-win for them — and it’s very much a win-win for the health/sustainability of your business.

For retailers or product providers, you can only play “margin games” for so long. So, identify monthly services that might augment the experience of using your products. Consider what your customers actually want (on an emotional level) and the problems they face in using your services. Restaurants could initiate a “VIP club” with special perks, automatic billing, and exclusive choices. Merchants can create enthusiast groups, or lessons and coaching.

The point is to go *beyond* the widget … and into the heart of your customers’ desires.

Remember this: There are always consumers out there with more money to spend. And they NEED your products or services. It’s up to you to convey the intrinsic value of working with you (even at a higher price point) in order to make a revenue shift with what is left of the year.

If you need help thinking this through, we’d be happy to give some insights and get you on the right track. That’s what we’re here for.

uplevelservices.com/contact/schedule-an-appointment/

To more in your top line AND your bottom line,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Employee Retention Strategies for Proactive East Los Angeles Bosses

Wed, 04 Feb 2026 13:37:57 GMT

Your employees are happy, right? They’re never going to leave you … right?

They’re not looking for another East Los Angeles job … uh … right?

You know what the answers are: Maybe, wrong, and I sure hope not.

Sooner or later, the advantage will swing back to you, the boss who does the hiring. But until then, the world’s changed and keeping people on the job takes, well, work.

What do your employees want in a new job, anyway? And what are some employee retention strategies that will actually work right now? These are questions many East Los Angeles bosses like you are asking these days…

And also, another thing:

Let’s try to grab a time to talk about your business before year-end, just to ensure that we are capturing every available tax-savings strategy for you.

Find us here: uplevelservices.com/contact/schedule-an-appointment/

Employee Retention Strategies for Proactive East Los Angeles Bosses

“By working faithfully eight hours a day, you may eventually get to be boss and work twelve hours a day.” – Robert Frost

The economy is still sputtering, scads of people are unemployed — yet East Los Angeles bosses like you are crying for workers (that’s maybe the biggest reason you don’t want your folks leaving right now, even if there are one or two of them you’d love to say good-bye to …).

What’s going on here?

What’s going on is that one out of every four people quit their job this year. And they didn’t do it because they’re such big fans of credit card debt and starvation.

That number is also up from previous years – even the last few years when people first began quitting in droves. They’re calling this “the Great Resignation.” Clever name, huh?

Except that if you’re trying to replace an employee right now, then maybe you’ve found there’s nothing “great” about it. Things are only getting harder for small businesses that need to hire workers.

But hey, bad news rarely travels alone – and the Great Resignation is no exception. Almost two out of every three workers are actively looking for a new job.

Look at three of your employees (stare discreetly). Two of them might well be sending out resumes. Anybody grumbling more than usual? Out a lot? Not seeming to give a hoot? You might have employees looking for greener pastures.

What you can do: Some employee retention strategies that actually work

Speaking of “greener,” you can certainly try paying your people more. That still floats the boat for a lot of employees. But you have to realize that others may be just plain looking for something else.

Outta here: Flexible hours and being able to work from home are two huge reasons people are bailing. A recent survey found that more than half of workers in all professions want a job that lets them work from home. A few companies (maybe your competitors) let them have that.

Food for thought?

If you’re coming off a period of employees working from home, look back at that. What went well? Would it kill you to keep doing things that way? Sorry, but you have to think on your feet to run a small business these days – don’t just do things because that’s the way they’ve always been done…

Who’s quitting? Reports say that women and workers who have about 10 years with a company are most likely to walk right now: re-thinking careers, looking to spend more time with family and friends.

Others are waiting to see which way our health crisis goes, and others are just plain burned out.

Your folks aren’t looking to jump ship just because they want a change of scenery. Heading off this problem is going to take more than your checkbook. Find out what they want and see if you can keep them by planning ahead.

Ask ’em: Is there anything you can do to make an employee’s life a little easier right now? There’s no guarantee that they’ll answer with 100% honesty (and no, you don’t have to volunteer to clean their house…), but if you show an interest, they might just come back with a workplace tweak that the two of you agree on.

What they do best: A lot of employees say they’re quitting to pursue their passions – or at least something closer to what they really want to do.

What do you really know about your workers, what they like to do, and what they’d be great at? Find out – maybe there’s room for that skill in your business. Hit them with a little more authority or responsibility to go with that extra pay. You’d be surprised how many people want that combination, not just the raise.

See if you can train them, too. That never hurts.

Spread the word: If you have to hire, don’t look to want ads to save you. Networking might also come up drier than usual, since everybody’s looking for workers.

Go with referrals – in fact, if your current workers are happy to refer you, they might not be as close to leaving as you think…

Expect any new hires that you do find to be hard negotiators. Nobody wants to do all the wooing, but new hires hold a lot of the cards right now.

You and your business can get through this. Let us know how we can help.

uplevelservices.com/contact/schedule-an-appointment/

To a happier, healthier company …

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

How East Los Angeles Businesses Can Build a Quality Prospect List

Wed, 04 Feb 2026 13:31:18 GMT

How’s your client/customer list faring these days?

If you’re like every other business around you, you’ve got some churn happening. People move, change jobs, experience a shift in financial circumstances … the list goes on. Even in predictable economic times (remember those days?), the task of finding new customers to replace the existing ones is an ever-present challenge for East Los Angeles business owners.

You might have a great prospect list to start with – or you might not.

The truth is that no matter the size of your list, you have a ways to go with a pickaxe and shovel before you turn those names into satisfied buyers.

Building a prospect list starts with looking at your current clients, looking around your market area and figuring out the best ways to reach people.

It’s a lot of work – but it’s worth it.

Before I get into this topic today, one quick reminder:

Let’s try to grab a time to talk about your Southeast Los Angeles County business before year-end, just to ensure that we are capturing every available tax-savings strategy for you.

Find us here: uplevelservices.com/contact/schedule-an-appointment/

Now, let’s discuss building that list…

How East Los Angeles Businesses Can Build a Quality Prospect List

“Master the topic, the message and the delivery.” – Steve Jobs

Growing a prospect list starts with your current customers – and the ones you like working with most.

Look at them. What makes these folks special? What do they have in common when it comes to your business? Is there one service they use a lot or a product they always buy? Are they all in the same industry, or do they live in the same area?

Any prospect who has a lot in common with your best customers is going to be a hot prospect indeed.

Quick note: A “prospect” is not a “lead.” A lead is often little more than somebody’s contact info. A prospect is somebody who, for whatever reason, is a whisker more likely to want to do business with you.

Prospects also don’t even have to be interested in buying right now. They just have to fit the general characteristics of the folks who already buy from you.

Another way to find good prospects is to see what markets are doing well in your area. “Market” can mean a lot of things, from more people moving in to more businesses opening. Sometimes all it takes to spot an opportunity is taking the time to look.

And of course, what’s the competition up to? Probably most times you look at the other guy with envy that they’re doing something you can’t. When you’re building your prospect list, though, flip that around: What’s your competition not doing that you can?

Look around your company, too. People know people. You may have so-so prospects that can turn into great ones because somebody right under your nose has the inside story. Ask.

Get the word out

Now that you’ve got this list (with luck, a big one) of people who have a better-than-average desire to buy from your East Los Angeles business, what do you do with it?

Thing is, you’ve got a lot of ways to reach them today – a lot – but you’re going to be just noise if you don’t speak loud and clear and right to their interests. Some mediums to consider…

Direct mail. Even though the mailman still brings you a lot of recyclable material, you have to admit that physical junk mail isn’t as common as it used to be. That could be your opening. Depending on how many people you’re trying to woo, invest the time for handwritten notes or the expense of mailing a book.

Sure, these aren’t cheap, but they could pay off when you’re trying to reach the best of the very best of your prospects. Requesting a signature on delivery is a relatively cheap way to stand out, too.

Despite the bucks for printing and postage, direct mail still works. And so does this…

The phone . Nobody likes getting cold calls and nobody likes making them – but salespeople say they still work. Study your list well, let folks know about you before you call and you might get somebody keen to buy (a happier cold call for everybody: the warm call).

Social media. Join online groups where your prospects are and then behave like any other member: helpful but not like somebody looking to sell something. Sooner or later, they’ll recognize your expertise.

Email. Most people say they prefer to be contacted by email – yet the open rate on unsolicited email remains small. Best bet is to only contact and communicate with prospects this way if they’ve given you permission. Drop any the moment they ask you to.

List to-do’s

Your list will soon have to tell you more than just somebody’s address. It needs to provide you with actionable data. So think about:

A second list for prospects you contacted but who didn’t give you business.
Notes for a follow up that you can use when you ping them again next quarter.
Scoring prospects on how close they are to buying from you – and who’s on the cusp of being dropped from your list because, let’s face it, some people just aren’t interested. Plus it makes room for new folks who ARE interested.

Happy prospecting. If there’s anything else we can do to help you and your business get ahead, just let us know.

uplevelservices.com/contact/schedule-an-appointment/

To your (faster) growing company …

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Uplevel Business Services’s Rundown of the 5 Basic Business Entity Types

Wed, 04 Feb 2026 13:22:08 GMT

The shape of your business affects your future and when I’m talking about the “shape,” I of course am referring to your East Los Angeles business entity type.

Did you know that you CAN change that after the fact? Depending on which entity you are switching to, the process can be painful … but you are NOT “locked-in” to a particular entity for the entire life of your business.

It’s worth being very thoughtful about all of these things, especially as we deal with an inflationary environment that may (or may not) affect you in significant ways.

And yes, I saw the passage of the infrastructure bill the other day. Once the thing is signed into law by the President, I’ll dig into it a little more and give you my thoughts.

And before I dive into entity topics, you are invited to grab a time to talk about your East Los Angeles business before year-end to ensure that we are capturing every available tax-savings strategy for you.

Find us here: uplevelservices.com/contact/schedule-an-appointment/

Ok, let’s talk business entity types. Nerds of the world, rejoice.

Uplevel Business Services’s Rundown of the 5 Basic Business Entity Types

“Definiteness of purpose is the starting point of all achievement.” – W. Clement Stone

The classification and type of business you have is an “entity.” Different business entities get different tax treatments (nothing’s ever simple, right?).

For instance, in many circumstances, people in some partnerships, LLCs and S corporations (keep reading) can take a 20% tax deduction on their “qualified business income” (QBI). As always in taxes and business, conditions apply – and Congress is considering tweaking this break, so stay tuned.

It’s one example of how the right business structure can change your tax life.

Here are some of the most common entities and their good and bad points along with some very basic tax info:

Business Entity Type #1 – Sole proprietorship: This is the simplest biz structure. It’s just you. You get all the profits, take all the chances, and take all the hits.

You pay your regular income tax on the profits, but you also have to pay self-employment taxes. Paying these every quarter is a really good idea, no matter what business entity you have, to stay on the taxman’s good side.

Business Entity Type #2 – Partnership: This is a bit more formal than just a few sole proprietorships glued together to share expenses, especially when you’re talking about taxes.

You have to get an employer identification number from the IRS and register for all state taxes (think “sales tax”). You file a federal Form 1065 “information return” to report the income, deductions, gains, losses, and so on.

You also have to think about excise taxes and employment taxes; these tend to pop up no matter the business entity you use.

You pay income tax as an individual since the money you make (or lose) “passes through” to the partners. That’s you. Your business doesn’t get taxed separately.

Business Entity Type #3 – LLC: A “limited liability company” is easier to start and run than a corporation but provides owners and their personal assets (your bank account, car, home) “limited liability” for problems the company might get into. Profits or losses pass through to your personal tax return using a federal Schedule C .

Aside from you possibly being able to use that QBI deduction we mentioned, LLCs can be taxed as sole proprietorships or partnerships – but you can choose to be taxed like a corporation with the plus of paying taxes on the business profits at the (lower for now, anyway) corporate tax rate.

Corporate culture

Two of the most common corp tax structures are S and C. They resemble each other, but there are big tax differences.

Business Entity Type #4 – C corp: Among other goodies, tax-free and tax-deductible benefits are available to employees in a C corporation (but as always, check with us on this), and owners can sometimes even get out of capital gains taxes when they sell a certain stock of the company.

But C corps suffer two levels of tax: On the income earned by the business and on the earnings distributed to shareholders as dividends. The individual shareholders must report this income on their individual tax returns. Dividends also get a really nice tax rate compared with income (but still, ouch).

Don’t be in a hurry to go to C: A recent study found that some startup C corps would have actually saved themselves money if they’d formed as LLCs.

Business Entity Type #5 – S Corp: These puppies pay only one level of taxation and a lot of C corps switch to S corp status. Tax bills can be like that…

S corps pass corporate income, losses, deductions, and credits through to shareholders who report the “flow-through” of income and losses on their personal tax returns – so S corps avoid that double taxation. They also get a real tax spark by only having to pay FICA taxes on salary compensation to owners and not on the remaining profits that magically transform into “distributions.”

Before you get visions of fattening your distributions, paying yourself a goose egg in salary, and dodging FICA altogether, the good folks at the IRS say that S corp owner-employees must be paid “reasonable compensation” for their services to the business.

Finally, there are a lot of conditions to qualify for S corp status and some states also have special rules for S corps.

You should never let the tax tail wag the dog of your East Los Angeles business, and there’s a lot more to know about biz entities and their plusses and minuses. If you want to learn more, make some time to chat.

uplevelservices.com/contact/schedule-an-appointment/

To your business being in optimum “shape” …

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

East Los Angeles Business Owners: Beware the Sales Tax Nexus

Wed, 04 Feb 2026 12:59:49 GMT

If your East Los Angeles business sells a lot online, then we’re coming into the most wonderful time of the year.

And this year, your customers will probably shop your website (and elsewhere online) EARLY in order to bypass all those supply-chain snafus. Cha-ching for you.

Just don’t forget the taxman – and we don’t mean the IRS. We mean the sales tax in states where you sell your stuff.

Yes, if you sell enough online, you’ve got to pay attention to the sales tax nexus.

You see, you’d be amazed at how many times this topic becomes “a thing.”

In fact, getting this wrong is one of the primary ways that businesses get in trouble with various revenue agencies (IRS and state revenue offices) because they don’t handle it properly.

But before I dive into this, let’s make sure that your business (and your family) is also capturing every available income tax-saving strategy available right now, and do a little tax planning:

Find us here: uplevelservices.com/contact/schedule-an-appointment/

Now let’s get a little scary together, shall we?

East Los Angeles Business Owners: Beware the Sales Tax Nexus

“The Internet, once heralded as an exciting new medium of communication, is now little more than a vast mail-order catalogue.” -Tom Hodgkinson

Everybody who lives in a state with a sales tax knows about that extra little bit that gets tacked on to purchases. That’s usually the point in the retail cycle when you hear muttering about the mayor, the governor, and/or everybody in the state capital. That little bit is the local sales tax. Most states have one.

What about when you buy something online? Just before you hit “check out,” that little amount gets tacked on there, too.

What about when you’re the one selling over the internet?

Have you ever heard of Wayfair? The home-goods and furniture company that does almost eight figures a year in global online sales? That Wayfair?

How about the U.S. Supreme Court’s 2018 Wayfair decision?

No? Well, that’s when our high court agreed with the state of South Dakota, which had long claimed that Wayfair owed sales tax from tons of transactions in that state.

The Supreme Court then basically gave South Dakota the authority to tell all online sellers that if they sold more than the low six figures or a couple hundred sales a year in the state, then they had to collect and send back South Dakota sales tax. That’s because a company then had economic nexus.

“Economic nexus?” Sounds serious. Is there a cure?

Sure. If you sell enough, collect sales tax from your online customers and send it back to the state. Period.

Taxing in a boom

Now, most states enforce economic sales tax nexus – not to mention all the cities and even towns out there that levy their own sales tax based on economic nexus.

(Not-so-fun fact: An office or a warehouse is one thing that can give a company “physical nexus.” So can your staff working remotely in another state – check with us ASAP on this…)

States’ timing is suspiciously perfect: E-commerce and buying over the web were already red hot before the pandemic made it explode. Research shows that more than nine out of ten internet users worldwide have purchased products online and that e-commerce is growing annually at about a 23% clip.

Holiday click-and-buy in the U.S. alone this year is expected to be in the hundreds of billions of dollars.

That’s a lot of sales tax.

In this case, your customers pay the tax. You collect and keep it for a set time – say a calendar quarter; depends on how often a tax jurisdiction makes you file – and then you send it into a department of taxation/revenue.

Your next steps with the sales tax nexus

Funny thing about people in the government who slap you with a tax: They tend to want to see the money.

And they can get nasty when they don’t see it. Think “sales tax audit,” “fines,” or worse.

If your East Los Angeles business sells a lot into a state, check with that state’s department of taxation and see what the deal is under “sales tax economic nexus.” If you are over or near the thresholds of dollars or number of sales, keep the following in mind:

– Taxability of your products. Not all jurisdictions levy sales tax on everything sold all the time. A lot of states have sales tax holidays for occasions like back-to-school shopping, for instance.

Jurisdictions sometimes split hairs on tax exemption. Some states exempt groceries from sales tax, for example, but require you to charge a sales tax on other kinds of food. It can even depend on whether chocolate or other candy is involved, and what a state considers “candy,” and so on and so on… aren’t taxes fun? Again, check with the state.

– Register. If you think you’ve got nexus in a state, register there to collect and remit sales tax. You can usually register online, which is fast. Most states let you register for free, but not all.

– Keep track. You have to calculate the right tax to collect and send back; there’s software that can help with this. You also need to keep a calendar of when you’re supposed to file your sales tax return with what state and to keep up on all the notices. The taxman loves to send notices – and some might need your quick attention.

You can handle this new tax obligation with a little work and attention – but don’t let it slide. If we can help, please let us know.

uplevelservices.com/contact/schedule-an-appointment/

To your East Los Angeles business staying out of hot water …

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

Chris Gelfuso’s Thoughts on Being Thankful in Difficulty

Mon, 24 Jun 2024 11:10:34 GMT

“It was the best of times. It was the worst of times.” I think we can agree that Charles Dickens’s famous lines ring true when looking back at 2020 and 2021 (though “best” might seem like a stretch).

With employees shifting their worlds to make room for new priorities, disruptions to supply chains, new government regulations, and so on, we’ve seen East Los Angeles friends’ small businesses (like yours) in a non-stop “pivot” just to keep things running.

The constant pendulum-swinging of activity has taken its toll, causing a haze of collective exhaustion to set in. When you’re tired, it’s easy to think about the “worst of times.”

But, as we take a little time to rest over here at Uplevel Business Services, we can see that these rollercoaster years have also offered up valuable lessons about what’s important and we’re truly thankful for them. And that’s what we want to focus on right now.

When I look back, I can see (right away) the many blessings of my Southeast Los Angeles County practice. First among them: the joy of you choosing us to be a trusted source, not only with your taxes but also as a guiding source when it comes to your business. We know it’s hard to trust your “baby” (your business) to another, and we don’t take it lightly.

Also, remembering the journey to get to where we are now is a process from which we can dig out nuggets of gratitude. As anyone who runs their own business will agree, it’s a giant leap to go out “on your own.” I still remember what it was like to take this dream I had for my practice and put it into reality. I was a little bit scared, but I was hopeful. It all seemed so risky, but there were friends and other business owners who helped me along the way.

The risk DID pay off of course, and I’m happy about what we’ve been able to create around here at Uplevel Business Services. Now we get to be the ones helping East Los Angeles people like you pursue THEIR dreams.

So, as I gather at my table with family and friends this week … I find myself thankful for people like you. Thank you for your trust, for your business through these difficult years… and for making my first steps into starting and running a firm so rewarding now.

And, here’s a little advice for this week: Whatever difficulties you and your East Los Angeles business happened to have experienced the past two years, find some space for thankfulness. There are hidden gems in the many trials … and hidden fears lying within the windfalls. Finding and savoring the good will help you and your team thrive in the midst of chaos and pressure.

Enjoy your holiday, be thankful, and make some room for the best.

Warmly,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

The Infrastructure Act and Your East Los Angeles Business

Mon, 24 Jun 2024 11:07:03 GMT

Blink, and we’re already into December.

Which also means… 2022 is right around the corner.

Are you ready?

The reason I put this so starkly is that you and I have less than 30 days left to make a tangible difference on your taxes (business or personal).

For your business (whether it’s a pass-through entity like an LLC or a C-corp, etc.) we have to ensure that your P/L’s are accurate and that you are being wise about expenses that you should either put off or accelerate, and more.

If you want to talk all of this through and get ahead of the game while you can, we’re right here:

uplevelservices.com/contact/schedule-an-appointment/

But today I want to address the recently-signed infrastructure bill — this is a different bill than the one grabbing headlines now (the “Build Back Better” Act). The key difference for the infrastructure bill is … well, it is actually signed into law.

Let’s look at how it might affect your business.

The Infrastructure Act and Your East Los Angeles Business

“Americans: Time to gather up those receipts, get out those tax forms, sharpen up that pencil, and stab yourself in the aorta.” – Dave Barry

On November 15, 2021, President Biden signed the Infrastructure Investment and Jobs Act into law. You’ve probably heard of it as the trillion-dollar-plus infrastructure bill. It has a lot to do with bridges, roads, drinking water, climate improvement, public transit, and internet broadband. It’s being called a “once-in-a-generation” law, and, yes, it is big news.

A few of the new law’s tax provisions are high-flying: extending some highway taxes, tinkering with taxes for superfund sites, and allowing bonds for some broadband projects and climate-friendly facilities.

There’s also a provision to extend relaxed funding requirements for employer-sponsored retirement plans. (We can tell you more about that one.)

But the Act also tweaks taxes you and your East Los Angeles business might pay. Let’s take a look at some of the biggest changes.

Credit discard

The Infrastructure Act will have a big impact on small businesses that planned to take advantage of a popular pandemic-related tax break.

The Employee Retention Credit (ERC) was a real goody, a tax credit for a big chunk of the wages paid by companies that the pandemic clobbered on the bottom line.

Now, this break is ending early. Maybe too early.

The ERC wasn’t supposed to say goodbye until Dec. 31st but got an early sendoff on Sept 30th for most employers, courtesy of the Infrastructure Act. Any wages paid after that are now ineligible for the credit.

Some recovery startups can still get the credit, but these companies had to have opened their doors after Feb. 15, 2020, and their gross receipts capped at six figures, among other conditions.

(Business owners might also have a shot at retroactively claiming the ERC for prior quarters. Check with us to find out if you are.)

Wait a minute – September 30th?

That’s right, notice that Washington was too busy bickering to pass this bill before the end of the third quarter of this year, as was once planned. That could be a problem for businesses that used the ERC through October; those businesses might be asking if they’re going to be in trouble for not having sent in the payroll taxes for wages they thought they were getting a break on …

You’re not alone in asking this. A lot of people are asking the same question. And it’s a good argument for why Washington should pass a bill when they say they’re going to. Regardless, we’ll keep you posted.

Virtual reality

If your East Los Angeles business deals with cryptocurrency at all, the infrastructure bill has a tax whammy that’s anything but two-bit: All crypto transactions of five figures and up must now be reported to our “friends” at the IRS.

This new ruling takes effect in 2023, so you’ll have to file your first “information reports” on these transactions by Feb. 15, 2024.

For now, the focus is just on cryptocurrencies, but the taxman is keeping options open regarding what’s called “other assets” in the exploding digital marketplace. The phrase they’re using is “cryptoasset.” Sounds like a band your kids listen to. But be prepared for the broad-sweeping implications of that term…

Don’t worry, we’ll keep you posted as changes roll in, so stay tuned.

Disaster planning

Currently, the IRS will often give taxpayersincluding businesses extra weeks (even months) to file returns/pay taxes if they’re in areas hard hit by various natural disasters — hurricanes, big blizzards, tornados, floods. But that extra time isn’t necessarily a gimme – the IRS doesn’t have to grant it.

Now, the Infrastructure Act says if you’re in an area that’s been hit with a federally declared disaster, you get more time automatically. And “disasters” now also include major fires.

The new law automatically gives a couple months’ relief after a disaster is declared. It covers filing and paying income, estate, gift, employment, or excise taxes, as well as filing a petition or notice of appeal with the Tax Court, among other extensions.

If this sounds like no big deal for you, just remember: Nobody expects a disaster. This could come in handy. You never know.

The only constant is change

Washington’s never done with taxes. Other changes most likely loom in future headline bills like the Build Back Better package, and those are more likely going to be stuff that you’re used to seeing in biz taxes, like adjustments (see “increases”) to corporate rates and the cap on the tax deduction for state and local taxes.

Or maybe not. If the Infrastructure Act taught us anything, it’s that you can’t be sure about new tax laws until the ink’s dry on the president’s signature.

We’ll always keep you posted, and we’ll always be there to answer your questions.

We’ll keep you in the know about tax law changes and how they affect your East Los Angeles business.

We’ll be here to answer your questions.

We’ll be here if you’re ready to talk year-end moves:

uplevelservices.com/contact/schedule-an-appointment/

To your business finishing the year strong,

Chris Gelfuso

 (562) 259-7777 

 UpLevel Business Services 

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