Thursday, April 02, 2009

Can You Believe...? Tax Information for Business

A new article from broke down some of the most interesting tax facts for business owners. You can find a portion of the text below, but the full article can be read here.

The IRS may recognize your business as one entity for tax purposes but your home state or a state that you are doing business in may not. As a result the protections that you think you have (e.g., personal liability protection) may not be in place in the event you are sued.

Some states require partnership registration fees that may go as high as $120,000.

Owners, members, officers, and partners who are protected against "personal liability" for the entity obligations may still be held personally liable for obligations that result from their failure to conform to tax rules and regulations.

Failure to comply with the tax laws in the states where you do business may subject your business to paying full taxes in your home state and additional taxes in the states where you do business.

There is a way for a business in economic trouble to avoid paying IRS penalties for delinquent taxes if the business can prove that it made the IRS its top priority by expending only absolutely necessary funds to complete work that would generate the income to make federal tax payments.

You may have to pay the entire tax debt or obligation of your business even though you have partners, fellow members, or other associates who were incompetent or dishonest and created the situation that caused the obligation.

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