Your Tax Place, Inc. - Tax Savings Strategies

  Do you pay your workers as EMPLOYEES or CONTRACTORS? With the NEW YEAR now here, it's TIME TO GET THIS RIGHT! One of the most recent HOT TOPICS with both the IRS and the DOL is to investigate businesses for the MISCLASSIFICATION of their WORKERS. For the past few years, businesses have misclassified their workers as contractors instead of employees in order to save 7.65% in matching payroll taxes. Because these businesses have been able to get by without being monitored and corrected, these business owners have become comfortable with this process and don't think they are doing anything wrong. In fact, because a lot of businesses have been operating this way, new business owners starting up the same business believe that it is ok to operate like this as well. The IRS has been aware of this problem and now are about to use their newly hired employees to become very aggressive about correcting this KNOWN PROBLEM to assess back withholding taxes and penalties to those

  A lot of people that I talk to ask me, " Who will give my business credit ?". Having business credit will help you to purchase the tools, equipment, and supplies that you may need to help you to grow your business.  But, in order to get business credit, your business needs to  Be Separate  from you.  Also, the business needs to have a proven track record of purchasing items on credit and repaying them ON TIME and/or IN FULL each month.    In other words,  Have its own Credit Score. As you know, a Credit Score is given to people/businesses and is attached to the NAME and TAX ID of the person/business for all to review and decide whether or not more CREDIT can be issued. First Step If you want to establish business credit and have established your business as a sole proprietor, the FIRST STEP  you need to take is to Separate   You from Your Business.   You can do this by forming a separate legal entity such as a Corporation or an LLC to allow your business to