Tax Questions Answered! Meet Meredith Adolf of Azure Sky Tax & WhatsNextMa Quilting

This month in the Longarm League, we sat down with one of our favorite returning guests, League member Meredith Adolf, to talk business taxes. Meredith is a dual-business owner, longarming for others at WhatsNextMa Quilting, and running a tax business, Azure Sky Tax, where she focuses on helping small business owners - especially longarm quilters.

As an Enrolled Agent, Meredith has spent years studying and honing her skills, and we're thrilled each time she joins us to shed light on this complex topic. She's recorded multiple calls with our students and members over the last few years to talk through a whole host of topics on small business taxes.

This month she joined us to answer League members' top tax questions, and wow, we really covered a lot of ground! Some of our topics included how the IRS defines a business versus a hobby, when to start filing taxes when you open your business, paying yourself via owner's draw or payroll, and Meredith's top advice for what to look for in a tax professional.

While League members have full access to the recording of the call, we asked Meredith to share a little more about herself and her businesses with our blog readers, as well as details on her upcoming course launch, which we are SO excited to share with you all.

Without further ado, let's meet Meredith...

Meredith Adolf, Azure Sky Tax & WhatsNextMa Quilting

Located: Virginia
In business: 4 years
Machine and software: HandiQuilter Infinity
In the Longarm League: Since 2020

Where to find Melissa
Website: https://www.azureskytax.com
Instagram: @azureskytax, @whatsnextmaquilting

Q&A

Tell us a little about your businesses and the services you provide.
Azure Sky Tax is the business that keeps the analytical side of my brain happy. I work with clients one-on-one for tax planning, business recordkeeping and to file their income tax returns. WhatsNextMa Quilting is my creative outlet and I enjoy longarm quilting for others and teaching quilting classes in person at local creative spaces.

How did you get into the world of small business taxes?
I took my first tax class in an effort to make filing my own taxes easier. Luckily for me, I ended up with a superb instructor and my fascination with the puzzle of income taxes began. I started preparing taxes professionally in 2008, earned my Enrolled Agent designation in 2012 and opened my own tax business in 2020. From the beginning I've loved watching my small business clients succeed, proud that I play a small part. It's so satisfying to teach and advise small business owners because the effects and results are almost immediate.

What does it mean to be an Enrolled Agent?
Being an Enrolled Agent means that I am federally licensed to represent taxpayers before the IRS. In practical terms, it means that I help you with tax planning, I give you tax advice and help you navigate the complicated tax rules, I prepare, sign and file your income tax returns, and I can assist you with any other tax matters.

What general tax advice would you give someone who's just starting out with their business?
Separate your business and personal finances. It doesn't seem like much, and in the beginning it may even be more of a hassle...but the separation is a key step in treating your business seriously and will greatly simplify your business finances as your business grows.

You've been working on an exciting new project lately - can you tell us more about it and how our readers can get additional info?
When I opened my longarm business in the summer of 2020 I went searching for information on the "business" side of the business - like any good tax geek I was looking for checklists and "how-to" and other things, especially for bookkeeping and taxes. I didn't find much, mostly posts about others looking for the same information. Since I'm a tax professional that wasn't a big deal to me, I could apply my knowledge of the rules to my particular situation and do just fine.

Fast forward through several years of my own business and working with quite a few other longarm quilting business owners and I have learned that there still isn't much information on bookkeeping and taxes specifically for longarm quilting business owners and that leaves many new business owners struggling to piece together what they can figure out on their own. Not to mention the nervous worries about filing taxes correctly and trying to make sure the information is complete.

I have put together an online program to take a new business owner from confused and frustrated about bookkeeping and taxes to organized and confident in their business finances. In this course I will guide you step-by-step through setting up your cloud accounting system, customizing it to your unique business and teach you how to use it so that you can make informed decisions and be prepared to file your business taxes.

Simple Start Bookkeeping will launch January 2025 and will finish before filing season ends. You can learn more and be notified when the course is available by signing up and downloading the free checklist, Gather Your Business Records, at the link below.

Simple Start Bookkeeping Checklist

What's the best way for someone to contact you if they're interested in working with you?
My website has my number and email. I'm also always happy to answer questions from Longarm League members in Circle, where you can tag me in the post or message me.

Just for fun

What is your favorite notion for longarm quilting?
My rainbow curved snips - I'd dropped my previous pair so many times they finally bit the dust so decided to have a bit of fun with the new ones.

What's your favorite part of making a quilt?
Weirdly enough I enjoy prepping my fabrics. I use starch and steam pressing to pre-shrink and having the pile of crisp fabric ready to go and full of possibility makes me so happy!

What other hobbies do you enjoy aside from quilting?
I've always been an avid reader and cool nights will find me snuggled in a comfy quilt with hot cocoa and a good book. 

If you'd like to watch our tax calls with Meredith, or are interested in being a guest, we'd love to have you join us! Whether you're interested in starting your own longarm quilting business, or wanting to improve your current business, check out our Rookie Season course! You can see all the details, read about how the course has helped previous students, and get started here.

Thanks so much for sharing your expertise with us this month Meredith!