Small Business -First Year of Business

I read this article the other day and thought I'd pass it along as it has some good tips:

How to Swim Not Sink in the First Year of Business.

At the bottom of the page is a link to the writer's website: takecommand.org which is a subscription based website but has a lot of good free valuable information. I haven't subscribed so can't comment on the paid information content, but I found a lot of good information for new businesses within the free content.

January 31 is deadline for many tax forms, are you in compliance?

Annual payroll forms 944/941/940/943 are due January 31, 2011 (if all taxes have been paid timely the deadline is extended by 10 days to February 10, 2011).

W-2s should be prepared and issued to your employees by January 31, 2011. You have until Feb 28 to submit copies to the SSA (March 31 if you electronically file)

1099's should also be prepared and issued by January 31, 2011. You have until Feb 28, 2011 to file the IRS copy (March 31 if you efile).

Who do you issue a 1099-misc to? Remember this applies to business and rental property, but not personal payments:

"File Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year:

• At least $10 in royalties (see Box 2 on page 4) or broker payments in lieu of dividends or tax-exempt interest (see Box 8 on page 7);

• At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate;

• Any fishing boat proceeds; or

Gross proceeds of $600 or more paid to an attorney. See Payments to attorneys on page 2."

Here is a great link to a calendar that shows various tax deadlines for 2011: IRS Tax Calender. You might want to bookmark it so you have it at your finger tips.

Also for those who only have a few 1099-misc forms or W-2's to file , you can file them for free at

fileyourtaxes.com

Tax Changes for Small Businesses...

Happy New Year -instead of rewriting information, I've decided to post links to items I feel are newsworthy to my clients.

Here's a link to a summary of a few important tax changes for Small Business made in 2010.

Tax Changes for Small Business

Here are the 2010 & 2011 Standard Mileage rates: Standard Mileage rates for 2011 and 2010 standard mileage rates.