Why Running Your Business Should Not be a D.I.Y. Project

Posted on July 22, 2013 in Planning & Advisors

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My husband receives a lot of “flag-waving” e-mails from his friends, some of which annoy me because they often end with the chorus of, “It’s all the fault of the politicians!” or “blame the lawyers!” But there was one–when taken out of its “(sigh) for the good ol’ days when Mom just stayed home to raise the kids and we didn’t have so many laws” context–made me stop and think.

There are a lot of laws that business owners need to follow. There are laws concerning how to form the entity that is your company, how to handle decision-making in your business partnership and what rate of interest you can charge on your contracts. There are many, many laws about how to deal with your employees. And there are volumes of laws about the taxes a business is required to pay. Relatively few taxes were imposed 100 years ago. And while I’m not a proponent of going back to “days of yore,” I do admit that running a business is made more complicated as a result.

That’s why it’s so crucial for business owners to have a good advisory team. The basics include an accountant, an attorney, a banker and an insurance broker. For no one person can know everything there is to know about building and running a successful enterprise, especially when there are so many taxes floating around (which, if not paid timely or properly, could cost you penalities and interest). Do you know which ones in this list you are responsible for?

  • Accounts receivable tax
  • Building permit tax
  • CDL license tax
  • Cigarette tax
  • Corporate income tax
  • Excise taxes
  • Federal Income tax
  • Federal unemployment tax (FUTA)
  • Food license tax
  • Fuel permit tax
  • Gross receipts tax
  • Inventory tax
  • IRS interest charges/IRS penalties (tax on top of tax)
  • Liquor tax
  • Luxury taxes
  • Medicare tax
  • Property tax
  • Real estate tax
  • Service charge tax
  • Social Security tax
  • Road usage tax
  • Sales tax
  • State income tax
  • State unemployment tax (SUTA)
  • Telephone federal excise tax
  • Telephone federal universal service fee tax
  • Telephone federal, state and local surcharge taxes
  • Telephone minimum usage surcharge tax
  • Telephone recurring and nonrecurring charges tax
  • Telephone
  • State and local tax
  • Telephone usage charge tax
  • Utility taxes
  • Vehicle license registration tax
  • Vehicle sales tax
  • Well permit tax
  • Workers compensation tax

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