A Pandemic of New Businesses
The COVID-19 pandemic changed the way a lot of people are looking at their work to personal life balance. Although we are returning to a somewhat sense of normalcy, a lot of individuals found a new normal as we enter post-pandemic life. Many individuals are not returning to their day jobs at the office.
Many states across the country saw a significant increase in LLC filings and new tax ID number registrations. Whether this was a permanent venture for you or an interesting “side hustle” there are some things you need to know in order to stay compliant.
- If you have a tax ID number the IRS, along with your state agency, will be looking for a tax return at the end of the year.
- If you employed people (in some cases including yourself) you may have payroll tax or independent contractor obligations to consider.
- If you sold items or performed certain services you may have sales tax obligations to consider with your state agency.
Starting a new business or taking on a new venture can be an exciting time, but it is important to stay compliant. Many start-ups make the mistake of not thinking about compliance until they receive a notice from the IRS or their state agency. With this common mistake can come hefty penalties that are completely avoidable.
We are already more than halfway through the year, which means it is a great time to talk to a tax professional in order to get the help and education you and your venture need.