The number of workers identifying themselves as "independent contractors" is growing in the United States. In 2005 the U.S. Bureau of Labor Statistics determined that the number of independent contractors rose from 6.4% of the workforce in 2001 to 27.4% of the workforce by 2005. In 2010, Navigant Economics claimed the following:
Can you imagine earning a paycheck of just $1 each year while living a comfortable lifestyle? Facebook CEO Mark Zuckerberg and head honchos at other giant corporations around the world can. And they are taking just a buck per year for good reason—to help their efforts in reducing taxes.
It is no secret that funds are extremely limited in the first few years of a business. However, even when your business starts to boom, be sure to constantly analyze where the money is going and whether or not your expenditures are worth the asking price.
The Affordable Health Care Act (ACA) ("Obama Care") may lead to stiff excise taxes for larger and midsize employers that misclassify employees as independent contractors.
The IRS considers you as a self-employed individual if you operate a business as a sole proprietor or as an independent contractor or if are a member of a partnership.
For years, employers and employees alike have been on the hook for FICA taxes on severance payments made to those who have been laid off by a company involuntarily. After some cases in lower courts questioned this requirement, the Supreme Court recently reaffirmed the longstanding IRS tax requirements on severance pay.
Tax season can be a very frightening time of the year for a small business owner. Technically, anyone who expects to owe more than $1,000 to the IRS in taxes is supposed to send in quarterly estimated tax payments, but for new startups especially it can be difficult to gather up the full amount due to pay.
When you file taxes as a solo business owner, things are more complicated than those days when you may have a received a W2 from a single employer. However, you've also got plenty of opportunities to trim your tax bill.
The IRS reminded people with home-based businesses that this year for the first time they can choose a new simplified option for claiming the deduction for business use of a home.
Becoming a licensed business is an important step that every startup must take when it comes time to sell a product or service. Here are a few ways that obtaining a license will impact your business.