Small Business

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 are many laws that employers are subject to concerning equal employment and prohibiting discrimination. Some questions you should not ask on an interview are: Do you have any disabilities?, How old are you?, What is your religious affiliation?, What is your ethnic background?, Are you married?, Do you have children?, What is your sexual orientation?.

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 incorporated, you are deemed a employee and should be included on a payroll system. S corporation owner shareholders need to take a "reasonable" salary. Only begin a payroll for yourself when you know your business has the cash flow to allow you to regularly and consistently take a check. The amount of your check will be net after withholdings. If you never have had any experience running a business, you definitely need to retain a CPA to advise you about payroll reporting requirements for yourself and your workers. You are personally liable for any payroll taxes you do not pay in a timely fashion or those you fail to report, even if you are incorporated. Some CPAs will recommend a payroll service company.

You must contact the State Department of Taxation where your business is located. Sales tax is a tax charged by various states on the sale of products or services? You must register with that state and every state's rules are different. Contact a CPA in your state to determine your responsibilities. As a business owner always remember, you are personally liable for sales tax not remitted properly, whether you collect it or not. So get yourself a good CPA.

There are many sources of money to start a business. However, realistically borrowing money from traditional sources such as a bank for a small business startup will be based solely on the credit worthiness of the owner of the business. In other words, you will have to sign personally. The SBA and Business Development Center are good places to start inquiring if your credit is good. If your credit is not good, find an angel investor, a friend or family member, to jump start your idea. A CPA quite often can help you find alternative sources of money, traditional and non-traditional.

If you are a sole proprietor or are a involved in a partnership, you are going to need a certificate of doing business and a Federal ID number. The certificate is usually obtained at the county or township hall in the county or township you are doing business. If you are incorporated, the bank will require a copy of your filing receipt or certificate of incorporation, your corporate seal and your Federal ID#. A CPA can obtain your Federal ID number and even incorporate your business for you.