Business Facts of Life
Nov 17, 2013 | 912 views | 0 0 comments | 11 11 recommendations | email to a friend | print

To make it or not to make it in business (as in everything) is a mindset or self-perception. Great achievements are usually created. It starts with one’s belief in one's ability or the hope that one is able. The rest of the movements in life are about whether to achieve the self-perception or a conscious or unconscious betrayal of one’s dream.

The super successful people usually have a combination of charisma and attention to details. Some can make it on charisma only, some can make it on attention to details only. But to the extent that one lacks either, one's success is impaired.

The best and easiest way to be in business is to find yourself in that business. If you are a computer expert, and you have developed a name as an employee, someone offers you to do a big project for him or her that requires you to resign and venture on your own. That is a less risky approach and a more assured one.

The second way is to think you will be successful because others have been successful in the business and you venture into it. Example: an executive in construction who quits his job to start a restaurant because his brother-in-law knows something about restaurants. That, on the face of it may be doomed to failure.

If you are already in business you need to be aware of compliance requirements in your field and the state and federal tax requirements. For example, you must be aware of the income tax requirements and filing for your state. Also, employment taxes in your state must be addressed in a proper manner. Sales and Franchise taxes are also tax issues that usually require the engagement of a CPA or possibly a tax attorney.

Needless to say that federal tax requirements are very important. The main taxes that everyone is concerned about are usually individual and business income taxes such as payroll taxes. Income and business taxes are filed annually. Payroll taxes are filed quarterly. The basic forms that you will be concerned with are 941 and 940. 941 is filed quarterly and 940 is filed annually. Also the state unemployment taxes are usually filed quarterly.

The most serious taxes that you need to watch with the IRS are payroll taxes. If you are delinquent on payroll taxes the IRS will deal rather harshly with you. They will place a lien on your property and may seize it from you. Also you will be subject to IRS collection actions such as IRS levy or garnishment.

The best tax resolutions to these matter beyond the normal installment agreement and the offer in compromise if you owe back taxes, is to get organized. You must have in place some mechanism that will allow you to calculate your payroll tax liabilities and estimated income tax liability. 

You need not live beyond your means. Make room to afford to pay your back taxes and current tax obligation. If you live beyond your means you have in essence stifled your own growth and you live to chase your problems.

Summary: Best tax resolution to your tax problems beyond offer incomromise, is to organize and live within your means.

Dean Alexander has been helping clients across the country with tax issues for over 30 years. He currently is the president of NFA Tax Help located in Houston, TX. Their website is www.resolvemytaxes.com.
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