Small Business

SIC stands for the Standard Industrial Classification Code. It is a four digit number assigned to identify a business based on the type of business or trade involved.
The first two digits correspond to major groups such as construction and manufacturing, while the last two digits correspond to subgroups such as constructing homes versus constructing highways.
A company can determine its SIC number by looking it up in a directory published by the Department of Commerce, or by checking in the SIC book in the reference section of a local library.
SBA size standards are based on SIC codes.

Surety Bonds provide reimbursement to an individual, company or the government if a business fails to complete a contract. The Small Business Administration (SBA) guarantees surety bonds in a program much like SBA's guaranteed loan program.

From the inception of the Internet until the late 1990s, the Internet was free of regulation by government in the United States at all levels, and also free of any specially targeted tax levies, duties, imposts, or license fees.[citation needed] By 1996, however, that began to change, as several U.S. states and municipalities began to see Internet services as a potential source of tax revenue. The 1998 Internet Tax Freedom Act halted the expansion of direct taxation of the Internet, grandfathering existing taxes in ten states.[1] In the United States alone, some 30,000 taxing jurisdictions could otherwise have laid claim to taxes on a piece of the Internet.[2] The law, however, did not affect sales taxes applied to online purchases. These continue to be taxed at varying rates depending on the jurisdiction, in the same way that phone and mail orders are taxed. It must be emphasized that the absence of direct taxation of the Internet does not mean that all transactions taking place online are free of tax, or even that the Internet is free of all tax. In the United States, nearly all online transactions are subject to one form of tax or the other. The Internet Tax Freedom Act merely precludes states in the United States from imposing their sales tax, or any other kind of gross receipts tax, on certain online services. For example, a state may impose an income or franchise tax on the net income earned by the provider of online services, while the same state may be precluded from imposing its sales tax on the gross receipts of that provider. In addition, as noted above, the Internet Tax Freedom Act does not prevent taxation of the sale of goods through the Internet.

You are responsible for FUTA taxes on farmworkers wages if you paid wages of $20,000 or more to farm workers during any quarter of the current or previous year or you employed 10 or more farmworkers during at least some part of a day for 20 weeks in the the current or previous year.
These rules do not apply to exempt services of your spouse, your parents, or your children under age 21.
Wages paid to aliens admitted on a temporary basis to the United States to perform farmwork (also known as “H-2(A) visa workers”) are exempt from FUTA tax.

Employers must give or mail employeees' copies B, C and 2 of Form W-2 on or before January 31st of the following calender year. A W-2 must be issued if any of the following criteria exists: if there was any witholding; if wages exceed the amount of one exemption ; 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.

There is no simple answer or formula for evaluating the price of your business. There are business brokers or appraisers that specialize in valuing a business. Some brokers believe that cash flow is the most important factor to consider. Some brokers use one of three possible calculations to determine cash flow. Earnings plus Interest plus Taxes = cash flow. Earnings plus Interest plus Taxes plus Depreciation plus Amortization = cash flow. Earnings plus Interest plus Taxes plus Depreciation plus Amortization plus Owner's Salary = cash flow. Other important factors to consider include competition, industry trends, balance sheet, income statement, gross margins, type and condition of equipment, customer base, and growth opportunities for company, owner's role, financial needs and goals, difficulty of someone else learning the business and how other companies of similar size in the industry perform. Speak to your local CPA or business broker to assist you in selling your business.

You should always keep a separate bank account for running your business. Even if you are a sole proprietor, it is important to segregate business expenses and deposits from personal. Always think of your business as a separate living entity.

Not all business years end on December 31. When you start a business, you can pick the twelve-month cycle. A business year or fiscal year can end on the last day of any month. However, if you elect S status, the year end is usually the same as the calendar year end.

If you are a sole proprietor, estimated taxes are due four times a year, based upon the net profit for the period preceding the payment due date. Estimated tax payments are due April 15, June 15, Sept 15 and Jan 15. Don't forget you will also owe self-employment taxes on your net profits. Please contact a CPA in your area for more information.