Most of us wince when we hear a mention of the Internal Revenue Service (IRS). However, for those who are running a home-based or small business, the IRS can be a useful and welcome ally. In fact, many IRS tools and publications are designed to help the small business manage their everyday tasks and finances.
Here's a brief summary of the tools available to you through the IRS.
1. Getting Started
The site offers detailed statements of what it means to be self-employed or an independent contractor and includes information on obtaining employer identification numbers (EINs), guidelines for operating and closing businesses and filing requirements.
2. Online Learning and Educational Products
From calendars and small business operational guidelines, the IRS features a thorough offering of DVDs, articles and Web-based courses. For example, the "Virtual Small Business Tax Workshop DVD" provides interactive information and resources in a workshop format in 10 lessons that are subtitled in English, Spanish, and Mandarin Chinese. 3 hours and 43 minutes running time. In addition, you can order up to 5 copies free.
3. Guidelines for Businesses with Employees
If you operate a business with employees, you need to know your tax responsibilities as an employer. This section briefly discusses a variety of topics that businesses who have employees and / or employers should know.
4. Small Business Forms and Publications
This area is extremely helpful if you're not completely certain of what forms or publications are appropriate for your specific needs. You can either download or order these forms; they also are available in Spanish. (A few of the specific forms are outlined below on this list).
5. Business Expenses Definitions
Find out more about what classifies as an expense and what is deductible from your home-based or small business operation. Topics include rents, interest, taxes, insurance, capitalizing assets, amortization, depletion, and bad debts.
6. Tax Guide for Small Business (Publication 334)
This 50-page guide offers a comprehensive guidance for small business owners who file Schedule C or Schedule C-EZ. It includes information on determining your business expenses, accounting periods and methods, figuring net profit or loss, and calculating your self-employment tax.
7. Industry Information
The site includes a relatively comprehensive guide on various industries and markets, including applicable tax laws, statistics, trends and contact information for associations.
8. Retirement Plans for Small Businesses (Publication 560)
This publication includes information on Simplified Employee Pensions (SEPs), SIMPLE IRA and 401K plans, and setting up qualified retirement plans. It also has useful worksheets for the self-employed to determine how much income they can defer in a retirement plan.
