Small Business Basics

Much effort goes into planning and launching a bookkeeping and tax business. And once it's up and running, the work has only begun. The next step is to grow the business.

Everyone knows that April 15 is tax day for individual filers; however, small businesses are required to file and pay taxes throughout the year. It's important to know when payments are due to...

Everyone needs a good tax professional who can give excellent advice on managing tax liability and prepare tax returns, especially if they are complex. Unfortunately, though you are that perfect...

Every small business owner eventually faces the same dilemma. Open a business checking account or continue funneling the money through an existing personal checking account? However, tax-savvy...

When millions of Americans get their weekly paychecks, part of what they've earned has been taken out for taxes. That's because federal and state regulations require employers to calculate weekly...

Employers use pay periods of various lengths. The biweekly pay period (one paycheck for every two weeks) is one of the most common choices. It is no more difficult to determine biweekly taxes than...

Your tax EIN, or employer identification number, is like a social security number for you business. Once you create it, it becomes a permanent part of the IRS's records. You can use your EIN to...

Starting a company may seem a daunting task, but there are services - like LegalZoom - that can both simplify and speed up the process. Here's how.

Shutting down your company can mean the end of something important to you, but it must be done correctly to avoid legal and tax complications. Dissolving a company is a lot easier than getting...

The IRS requires employers to calculate federal taxes on gross pay and to collect and remit the tax money periodically. The individual steps needed to calculate federal taxes on gross pay are...

Having made the decision to sell Avon products, you now may be wondering about your tax obligations. Specifically, you are interested in finding out whether or not you need to file taxes for...

With the exception a person who is self-employed with no employees, all businesses are required to calculate payroll withholdings for federal taxes. In most cases there are state and local taxes...

Many business expenses are tax-deductible and can help reduce your burden on April 15. Keep organized, detailed records or receipts for all of your tax-related expenses, in case the IRS wants to...

Calculating California's sales tax can be a confusing issue when trying to determine how much to tax to charge your customers or figuring out how much tax you will pay as a consumer. Fortunately,...

Although running a small business is sometimes challenging, there are many benefits as well. One of the biggest benefits is the large number of tax deductions that small businesses can claim....

In running a small business, every dollar counts. The law allows for a number of legitimate tax deductions that can help small business owners manage their finances. While many deductions are well...

Figuring payroll taxes isn't difficult, but it can be complicated because there are a minimum of seven different taxes to consider---and even more when you factor in state and local income taxes....

Employers set up payroll schedules in a variety of ways. One of the most common is the bi-weekly schedule. Each employee receives a paycheck for two weeks pay at a time on a 14-day cycle. When...

Income from a small business flows through to the personal tax return of its owners. It is there that the Internal Revenue Service will tax the profits earned. Reducing the taxable income of your...

Deciding to change your business from a sole proprietorship or partnership to a Limited Liability Company (LLC), can be a good strategic maneuver for a number of reasons. Your LLC will be...

The Internal Revenue Service as well as many state and local governments require businesses to withhold payroll taxes from employee wages. For the most part, calculating each tax isn't difficult....

Small business taxes must be filed much more frequently than the annual deadline of April 15 that most taxpayers are accustomed to. The Internal Revenue publishes small business tax calendars...

The limited liability company (LLC) is a relatively new business structure that makes sense for many small and mid-size businesses because of its flexibility and protection. The LLC is a formal...

A small business needs an employer identification number, or EIN, because it is more secure than using a social security number. Find out why a business without employees should still register for...

Writers love to write. They love placing one word in front of another, creating sentences and building articles or stories. And if writers can earn money doing this, that’s even better. As the...

At the end of every pay period, businesses must calculate not only employees' pay but several payroll deductions as well. Some payroll deductions are mandated by federal and state governments...

The federal government, along with most state and some local governments, levies payroll taxes that businesses must calculate, collect and remit to the appropriate government agency. It's not hard...

All businesses other than sole proprietorships with no employees other than the owner are normally required to figure withholding taxes and deduct them from employees' paychecks. As a...

Federal and state regulations require businesses to calculate withholdings from employee paychecks and remit this tax payment to the government on a regular schedule. In addition to federal and...

For small businesses interested in calculating their own payroll for employees.

Being you own boss is an idea that appeals to many people. You set your own hours and perform work that interests you. Lots of folks go into business for themselves for those very reasons without...

Social Security deductions go to pay retirement benefits to individuals, to surviving spouses and children, for Social Security Disability Income (SSDI) for people who become disabled and can no...

Planning your new business includes considerations such as a business name, location and the type of legal structure under which you will operate. There are options that have a range of legal and...

Many small businesses choose to incorporate as S corporations due to the tax advantages. This type of corporation eliminates the double-taxation often experienced by larger companies, when both...

If you own a business, chances are, you have to pay sales or use tax to your state. There are two components of this tax: state and local. Because local taxes vary a lot within the state and...

When people who are without work seek jobless or unemployment benefits, the money must come from somewhere. In most cases, the funds are derived from the state's unemployment-insurance program....

It is rare today for a business to process payroll manually, although a few small employers still find this cost-effective. However, despite all the sophisticated computer technology and software,...

You love running your small business in sunny Florida, but hate the reporting part. Reporting the correct amount of state tax is important because incorrect totals can cause penalties and even...

Michigan levies a flat percentage income tax rather than using a progressive (tax bracket) system like that used by the federal government. All employers who are required to withhold federal...

At the end of the pay period (which may be weekly, biweekly or some other period), all the employee time records are gathered. The first step in calculating payroll is to find an employee's gross...

Tax write-offs for small businesses are deductions that are allowed by the Internal Revenue Service. The write-offs come off the bottom line, and the small business owner pays taxes on the amount...

Do you have a website for your business? Have you encountered any expenses to run and maintain your business's website? If the answer to both of those questions is a resounding yes, then there is...

FUTA (Federal Unemployment Tax Act) taxes are one of several payroll taxes employers must pay. FUTA tax is not deducted from an employee's paycheck like income tax or the employee's contribution...

States that collect sales tax also impose use tax. The levy is imposed to reduce unfair competition between profits that are made from out-of-state sales versus profits that are made from in-state...

When federal withholding tax is calculated, the employee's gross wages are the starting point. Gross wages include salary, commissions, tips and other compensation. Gross pay does not include...

A limited liability company (LLC) is a relatively new form of legal business structure. An LLC, as its name implies, offers limited liability protection to its owners, or members as they are...

To prepare a federal income tax return three types of income are calculated--total income, adjusted gross income and taxable income. Taxable income is used to calculate your tax liability, or the...

Employers are required to pay both state unemployment payroll taxes (SUTA) and federal unemployment payroll taxes (FUTA). The percentage of the SUTA tax varies from state to state. However, it is...

You've decided to turn your passion into a business, but you're unsure what the steps are to starting a small business. Although you're probably excited to start making money, what's even more...

When you own a business, one of the accounting tasks you have is to determine your federal payroll taxes. These fall into two categories. Some federal payroll taxes are paid by the employee and...