Small Business Taxes
Small business taxes. Definitely NOT the sexiest subject around!...<yawn>
It's about as exciting as watching
paint dry!
Still, it's been said that there are two things in life you can count on...death
and TAXES.
Like it or not, you need to pay attention to them.
Ignoring them is kind of like
bungee jumping off of a bridge WITHOUT a bungee cord... disaster is inevitable!
One of the reasons you build a business of your own is to secure at least a
comfortable income. If proper tax planning is being overlooked or
ignored, there's a good chance you could lose everything...
...many before you have because of this oversight!
When you are self-employed, taxes aren't automatically deducted from your
earnings. You are solely responsible for reporting and paying them.
Read this disclaimer
»
It's NOT just about income tax
As a small business owner, you may be responsible for a variety of
taxes. The legal structure of your business, i.e.,
sole-proprietorship, partnership or corporation, will dictate which
taxes you need to be concerned with.
Taxes may include...
e-Commerce and Sales Tax
If you are a merchant selling a tangible product, chances are it's taxable.
As a merchant, you are responsible for collecting, reporting and paying
sales tax for the things you sell, if it's sold to a customer within your state.
You are NOT required to collect sales tax for products sold to customers
outside of your state.
Most states require you to obtain some sort of seller's permit. Generally
you will complete a simple application and pay a small fee.
Once your application is approved, you will automatically receive a blank
sales tax return prior to the due date. Be sure to follow the instructions
properly. In most cases, even if all of your sales were to customers outside
your state, you will still need to file the return.
Sales tax rates differ from state-to-state...and some states, like Oregon,
don't collect them. Besides state sales tax, cities and/or counties may also
be entitled to a portion of this tax, depending on where your business is
located.
Reporting requirements are also different for every state. For example,
California may require filing a quarterly sales tax return while Arizona
requires one every month.
Many states now have a way to e-file sales tax returns. Check with your
state authority regarding requirements.
Please read this
disclaimer »
Tax Reduction Secrets
Don't despair... there IS good news! You are legally entitled
to deduct most of the expenses you incur operating your small business. And
they can add up to HUGE tax savings every
year. Yep, this means you get to keep MORE of what you
earn.
You can benefit greatly if you understand the tax code as it applies to
you. A little basic knowledge could save you from costly mistakes and the misery of failure.
Paying attention will not only keep you out of trouble, it can give you a distinct advantage.
Listen, I am
definitely NOT an authority on taxes... ...Sanford
"Sandy" Botkin is.
A former trainer of IRS auditors, a tax attorney and
CPA, Sandy Botkin is now considered the leading authority on the subject.
He's so passionate about helping people understand how
to legally reduce their tax liability, he wrote this book...
Lower Your Taxes – Big Time! Wealth-Building Tax Reduction Secrets from an
IRS Insider
It's a real eye-opener! When I first
started my business, I attended one of Sandy's tax
seminars. The knowledge I gained has saved me thousands of dollars
in taxes over the years. If you live in the United States or Canada,
I recommend that you pick up Sandy's book.
Please read this
disclaimer
»
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