The IRS would love for you to continue as a sole proprietorship in your business because you are an easy target
United States of America (Press Release) February 13, 2008 --
The IRS loves business owners, especially if you are a sole proprietorship! Last year the IRS said there is $300 BILLION in uncollected taxes. The biggest culprit is small business owners. If fact, sole proprietorships are 300% more likely to get audited than someone who does not file a schedule C!
“The IRS would love for you to continue as a sole proprietorship in your business because you are an easy target! Sole proprietorships are most likely to under report their income and over report their business expenses. Definitely, low hanging fruit for them!” says Scott Letourneau, CEO of Nevada Corporate Planners.
Want to really get the IRS hot and bothered? Don’t run your business like a business. Run it like a hobby and they will really have their way with you! Avoid having accounting systems from day 1, just see what happens in your new business, “try” and see if it works….all the signs of a hobby. See how fast those business deductions will be disallowed!
If you fall into the last situation, don’t expect your love letter IRS notice soon after you have made these mistakes. This love letter may take a few years to get to you! In the form of an audit with penalties plus interest! Who said love doesn’t last!
Solution: Run your business like a business, get consultation from someone that understands entity structuring, document all your business expenses, and don’t operate as a sole proprietorship! Incorporating is a much better approach.
Scott Letourneau is the CEO of NCP, Inc. and an authority in helping people form entities, grow their business, and protecting the assets of that business. For additional information contact: Scott Letourneau at 702-367-7373 or visit www.nvinc.com to receive your free guide, Costly Mistakes To Avoid When Incorporating in Nevada!
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“The IRS would love for you to continue as a sole proprietorship in your business because you are an easy target! Sole proprietorships are most likely to under report their income and over report their business expenses. Definitely, low hanging fruit for them!” says Scott Letourneau, CEO of Nevada Corporate Planners.
Want to really get the IRS hot and bothered? Don’t run your business like a business. Run it like a hobby and they will really have their way with you! Avoid having accounting systems from day 1, just see what happens in your new business, “try” and see if it works….all the signs of a hobby. See how fast those business deductions will be disallowed!
If you fall into the last situation, don’t expect your love letter IRS notice soon after you have made these mistakes. This love letter may take a few years to get to you! In the form of an audit with penalties plus interest! Who said love doesn’t last!
Solution: Run your business like a business, get consultation from someone that understands entity structuring, document all your business expenses, and don’t operate as a sole proprietorship! Incorporating is a much better approach.
Scott Letourneau is the CEO of NCP, Inc. and an authority in helping people form entities, grow their business, and protecting the assets of that business. For additional information contact: Scott Letourneau at 702-367-7373 or visit www.nvinc.com to receive your free guide, Costly Mistakes To Avoid When Incorporating in Nevada!
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