Small Business

The length of time you should keep a document depends on the action, expense, or event the document records. Generally, you must keep your records that support an item of income or deductions on a tax return until the period of limitations for that return runs out. The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or that the IRS can assess additional tax. The below information contains the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date. Note: Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return. You owe additional tax and situations (2), (3), and (4), below, do not apply to you; keep records for 3 years. You do not report income that you should report, and it is more than 25% of the gross income shown on your return; keep records for 6 years. You file a fraudulent return; keep records indefinitely. You do not file a return; keep records indefinitely. You file a claim for credit or refund* after you file your return; keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later. You file a claim for a loss from worthless securities or bad debt deduction; keep records for 7 years. Keep all employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.

Yes. Taxpayers who own or operate businesses may be eligible for the following tax incentives: Business tax credits named the Work opportunity tax credit, and the Disabled Access credit. The Work Opportunity Tax Credit is a federal tax credit used to reduce the federal tax liability of private-for-profit employers. Employers can hire from 9 different targeted groups: Qualified TANF Recipients, Qualified Veterans, Qualified Ex-Felons, Qualified Designated Community Residents (DCR), Qualified Vocational Rehabilitation Referrals, Qualified Summer Youth, Qualified Food Stamp Recipients, Qualified Supplemental Security Income (SSI) Recipients Qualified Long-Term Family Assistance Recipients.

DUNS stands for the Data Universal Numbering System. It is a database maintained by Dun and Bradstreet that is used by the Government to identify each contractor and their location(s). This number is required to register with the Central Contractor Register (CCR) that is used by the government's electronic commerce/electronic data interchange (EC/EDI) system called FACNET. You can obtain a DUNS number at no cost by calling Dun and Bradstreet at 800-814-1435

Employers must give or mail employees' copies B, C and 2 of Form W-2 on or before January 31st of the following calendar year. A W-2 must be issued if any of the following criteria exists: if there was any withholding; if wages exceed the amount of one exemption ($2,800 in year 2000; to any employee paid more than $600; or to any person you paid an amount for services if you are in a trade or business. An employer may be subject to penalties for non-compliance.

SCORE or the SCORE Association was previously known as the Service Corps of Retired Executives, but is now recognized as SCORE, "Counselors to America's Small Business." It is a 501(c)(3) nonprofit organization that provides free business mentoring services to entrepreneurs in the United States. The organization also presents business workshops and seminars for a fee. Business mentoring services are provided by both active and retired business executives and entrepreneurs who donate their time and expertise as mentors to assist new and established small businesses. SCORE is a resource partner with the U.S. Small Business Administration.

Some aspects to consider are licenses required, zoning laws and other regulations that vary from state to state and business to business. Depending on the type of business you are running, you may also need establishment licenses, liquor licenses, delivery and or transport licenses. Your local SBA office or chamber of commerce will provide you with general information. You must decide about your form of organization. You must choose to be a sole proprietorship, corporation, s-corporation or partnership. Speak to your local CPA for advice specific to your business and location.

Man should never live by tax deductions alone! While leasing a car for business often results in a larger deduction, leasing does not necessarily make business sense. If you are going to travel an enormous amount of miles during the year(in excess of 15,000 miles/year), or if excessive wear and tear on the vehicle is probable, then do not lease the auto or truck. If you do decide to lease a vehicle given those circumstances, you may be shocked when you go to turn in the vehicle at the end of the lease.

One address is www.kentis.com/acctxpub.html

No. Technically a husband and wife can't jointly own a business as a sole proprietor. They can't split a sole proprietorship and file two Schedule C's and two Schedule SE's. To avoid being classified as a partnership, a husband and wife team operating a business together can treat one spouse as an employee and the other spouse as the owner.