OTHER ISSUES YOU NEED TO BE AWARE OF

Independents vs. employees:

If you hire workers in your business, they will either be classed as independent contractors or employees. The employee-independent contractor issue has been a touchy one between business owners and the IRS for years so think about this issue carefully when you classify workers. The amount of control you have over the job done determines worker status - the more control you have the more likely it is that a worker is an employee. Then you have to deal with employment taxes, withholding, payroll tax returns and W-2 filing.

A Pension Plan:

Maintaining a pension plan offers you an excellent way to defer income from your business and plan for your retirement One good option is a Keogh plan. Different plans have different rules about contributions, reporting, coverage, etc. Be sure to consult, with your plan administrator so that you meet the specific requirements and limitations.

Estimated Tax Payments:

If your business is unincorporated, the income you earn from it is reported on your individual lax return and is subject to income and self-employment tax. Since no withholding is usually taken from self-employed income, you may need to pay estimated taxes to avoid getting hit with a penalty. Your tax advisor should be able to help you compute the amount you need to pay to ensure that no penalty is assessed. The usual due dates for estimates are April 15, June 15, September 15, and January 15.

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Small Business - Expenses

Small Business - Record Keeping