Participate on Twitter: Follow @nfiblive and use hashtag #nfiblive Download slides at: http://www.nfib.com/taxproblems
How to Avoid the Top Five Most
Expensive Tax Problems for
Small Businesses in 2011
Charley Moore, Chairman and Founder, Rocket Lawyer Edward J. Leyden, Tax Lawyer, Hollrah Leyden LLCMeet Our Speakers
Charley Moore Founder and Chairman Rocket Lawyer Edward J. Leyden Tax Attorney Hollrah Leyden LLCParticipate on Twitter: Follow @nfiblive and use hashtag #nfiblive Download slides at: http://www.nfib.com/taxproblems
Top 5 Tax Problems
1. Poor Record Keeping 2. Dubious Tax Deductible Business Expenses 3. Payroll Tax Problems 4. Not Classifying Workers Properly 5. Wrong Corporate Structure1. Poor Record Keeping
Most small businesses that fail to comply with their tax reporting requirements are not dishonest, they're just bad record keepers. • What records should you keep? • How should you organize them? • How long should you keep them? • Paper or digital?Participate on Twitter: Follow @nfiblive and use hashtag #nfiblive Download slides at: http://www.nfib.com/taxproblems
2. Dubious Tax Deductible Business Expenses
• Entertainment • Car • Home Office • Business Gifts • Equipment & Supplies 5 business deductions commonly targeted by the IRS are:3. Payroll Tax Problems
• What are your payroll tax requirements? • Do you have to pay quarterly taxes? • How do you pay? • What happens if you don’t pay?Participate on Twitter: Follow @nfiblive and use hashtag #nfiblive Download slides at: http://www.nfib.com/taxproblems
4. Not Classifying Workers Properly
• Employee vs. Independent Contractor • What are the tax requirements for each? • What happens if I misclassify workers? For small business owners, choosing between hiring employees or independent contractors is an important decision that defines not just working relationships, but taxation as well.5. Wrong Corporate Structure
Each corporate structure has different implications for legal liability, expenses and procedures, and taxation. Which is best for you? • Sole Proprietorship • Partnership • “S” Corporation • “C” Corporation • Limited Liability CompanyParticipate on Twitter: Follow @nfiblive and use hashtag #nfiblive Download slides at: http://www.nfib.com/taxproblems
What to do if the IRS does contact you:
• What is the notice saying? • Call the IRS • Follow instructions • Gather documentation • Respond or Contact a Tax Attorney Even if you’ve done everything right, the IRS may come calling. If this happens to you, relax. Most IRS notices are nonthreatening if handled correctly.• IRS Pub 334 Tax Guide for Small Business
http://www.irs.gov/publications/p334/index.html
• IRS Pub 505 Tax Withholding and Estimated Tax
http://www.irs.gov/publications/p505/index.html
• IRS Pub 535 Business Expenses
http://www.irs.gov/publications/p535/index.html
• IRS Pub 463 Travel, Entertainment, Gift, and Car Expenses
http://www.irs.gov/publications/p463/index.html
• IRS Pub 587 Business Use of Your Home
http://www.irs.gov/publications/p587/index.html
Participate on Twitter: Follow @nfiblive and use hashtag #nfiblive Download slides at: http://www.nfib.com/taxproblems
Valuable Resources
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• Employment Agreement
http://www.rocketlawyer.com/employment_agreement-form.aspx
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http://www.rocketlawyer.com/independent_contractor_agreement-form.aspx
• Response to IRS Penalty
http://www.rocketlawyer.com/response_to_irs_notice-form.aspx • Business Contract http://www.rocketlawyer.com/business_contract-form.aspx • Corporate Bylaws http://www.rocketlawyer.com/corporate_bylaws-form.aspx • Corporate Minutes http://www.rocketlawyer.com/corporate_minutes-form.aspx Powered by Visit www.nfib.com/legalplans
for more information!
Charley Moore
www.rocketlawyer.com [email protected]Edward J. Leyden
www.hollrahllc.om [email protected]Participate on Twitter: Follow @nfiblive and use hashtag #nfiblive Download slides at: http://www.nfib.com/taxproblems
Be Careful About Tax Deductions for That Office or Shop in Your Home http://www.nfib.com/business‐resources/business‐resources‐item?cmsid=47489 4 IRS Red Flags to Avoid http://www.nfib.com/business‐resources/business‐resources‐item?cmsid=49534 7 Tax Deductions That Small Businesses Often Overlook http://www.nfib.com/business‐resources/business‐resources‐item?cmsid=55499 10 Tax Savings You Could Be Taking http://www.nfib.com/business‐resources/business‐resources‐item?cmsid=44953 Coping with Payroll Regulations http://www.nfib.com/business‐resources/business‐resources‐item?cmsid=18839 Independent Contractor Versus Employee: Nailing Down the Distinction http://www.nfib.com/business‐resources/business‐resources‐item?cmsid=33125 How to Choose the Right Business Structure for Your Small Business http://www.nfib.com/business‐resources/business‐resources‐item?cmsid=49906
