Small business taxes
Being self-employed — Filing a Schedule C isn’t a guarantee that you will be audited but the IRS doesn’t like to see “a small Schedule C that you continue to show losses on while you have a regular job. check out this IRS page: Is your hobby a for-profit endeavor?
- Home offices — There have been several articles on major sites recently touting the tax advantages of a home office, but you’ve got to be careful. This is a huge red flag. For more information, here are some home-office-deduction reminders from the IRS web site.
- Family members on the payroll — One common tax dodge is to “hire” a family member in order to take more money out of a business. There’s nothing wrong with employing family members as long as they are actually working.
- Unlikely business deductions — It can be tempting for small-business owners to claim new toys as business deductions. That Nintendo Wii? Not a business expense unless you are reviewing games with the intention to make a profit. That trip to New York? Not a business expense unless it serves a legitimate purpose. Don’t try to play it cute.
- Excessive entertainment deductions — This is one that has me worried. If you only just recently begun to take people out to lunch with ur business card. Be careful to only use this card if u are actually discussing something related to writing or blogging, but even so I wonder if u ought not just pay out of personal funds.
- Income Tax. All businesses except partnerships must file an annual income tax return. …
- Estimated tax. Generally, you must pay taxes on income, including self-employment tax (discussed next), by making regular payments of estimated tax during the year. …
- Self-Employment Tax. …
- Employment Taxes. …
- Excise Tax.
