If you're in business, you have around a 1 in 100 chance of being audited by the IRS. If you run a business from home, your chances go up about four times. As long as you keep your books in good order, though, an audit is nothing to be scared of. The IRS won't audit you just to harass you. They just want justification of certain items on your tax return. There are two important things to do if you get audited, though, that can protect you and your business from undue problems.
When the IRS notifies you that you will be audited, they will give you the choice of having the audit meeting at the IRS office, or your office. ALWAYS HAVE THE AUDIT TAKE PLACE AT THE IRS OFFICE! Many business people think that they should have the audit in their own office, so they feel more comfortable. This is the WRONG thing to do. If you let the IRS agent into your office, you have given him or her the opportunity to view your whole operation. They will definitely be looking for other things to question you about, besides the original audit item. If you have the meeting at the IRS office, it forces the agent to focus on the original item.
The second thing you should do goes along with the first. When you go to the IRS office, THE ONLY PAPERS YOU SHOULD TAKE WITH YOU ARE ONES DIRECTLY CONNECTED TO THE POINT OF CONTENTION!
If the IRS has a problem with a certain deduction, say travel expenses, take the receipts that will back up the deduction, AND NO MORE!
If you take your complete set of business records, the agent is sure to take some time "looking for backup information" for your deduction. In reality, they will be looking for other, unrelated items that don't "look right." If you have the meeting in your office, they have every right to look through your files for the same things.
In other words, the smart thing to do is only give the IRS access to information regarding the items they are auditing you for. They will let you know the reason for the audit beforehand. This gives you the knowledge you need to protect yourself and your business from audit nightmares.
In these days, it's becoming increasingly difficult to make ends meet with just one source of income. Thus, more and more people are investigating the possibilities of starting their own extra-income business.
Once you have formed your own non-profit organization, you merely place in your corporate charter the provision that medical care be paid by the organization of which you are a member.
There isn't a day that goes by that I don't hear another small business owners complaining about some of the customers they have to do business with. And some of them REALLY are legitimate complaints.
This Handbook on the basic regulations and related services administered by the Department of Labor (DOL) is designed primarily for small businesses in general industry. It begins with a general overview of DOL requirements.
Your Guide to Setting Up Your Own Business at Home
Success in business comes as a result of planning. You have to have a detailed, written plan that shows you what the ultimate goal is, the reason for the goal, and each milestone that must be passed in order to reach your goal.
Because tens of thousands of people all across America want to know how they can work at home and earn enough money to run a household, there is a special need for this report. Today the need for women to work out of the home is stronger than ever.
Twenty million home-based businesses will be in operation by 1999, according to Link Resource's 1995 National Work-at Home Survey. All around the country, people who want more control over their lives are starting home businesses
Ask 500 people already in business how they decided upon their business name and you will get 500 different answers. Everyone has a story behind how they chose their own business name.
Prepared by the Office of the General Counsel U.S. Small Business Administration