Small Business Center

Did you know that the Small Business Administration offers small business owners an online forum to share information and experiences with other business owners and subject matter experts alike?

Business.gov, which has long operated as the government’s official website for small business, not only brings together resources from across government to help small businesses start-up, operate and grow, it also operates an online Community (with more than 8,000 members) that enables business owners to interact directly with government and industry professionals, while sharing information about starting and running a successful business with each other!

The Community provides a forum for you to connect with other business owners for advice, camaraderie, and even potential partnerships.

Each month we hope to bring you a round-up of what small business owners are talking about in the Community, what our experts have to say, and answers to common questions.  We’re kicking off this month with tax season tips and resources!

Tax Season is Here – Get Answers to Common Small Business Tax Questions

No one says that doing your taxes is easy, but a little preparation and planning can make the process less painful. Here are some essential resources and tips from the Business.gov community of small business experts to help you get your arms around your business tax preparation and avoid common pitfalls.

New Tax Laws for the 2009 Filing Season

As you prepare to file your small business tax return, you’ll need to be aware of several new tax laws that went into effect in 2009. Read “Before you File your 2009 Tax Return – Take Note of Major Tax Changes that Apply this Year!”.

Business Income Tax Filing Tips

Small business owners have many questions about filing taxes, but here are answers that address some of the more common areas of confusion:

• A Primer in Taxable Business Income – When filing your business income taxes, you must report all income – not just income from the sale of goods, services, or property. Check out this easy-to-read guide on what is taxable income and what is not.
• Cash vs. Accrual Accounting for Taxable Income and Expenses – Are you filing your taxes and are confused about how to record your business income and expenses? Read on to learn which cash vs. accrual accounting method can work better for your small business.
• An Intro to LLC Tax Law – Whether you are newly registered LLC or have been established for some time, this 101 in LLC Tax Law can help you navigate the constantly changing tax laws that apply to your business structure.

Tax Deductions and Expenses

Tax deductions are tricky to navigate and the laws that govern them are often misinterpreted. Get the facts with these quick reference articles:

• Home-Based Business Deductions – Run your business out of your home? 52 percent of small business owners do.  Read “Do you Run Your Business Out of Your Home? You May Qualify for a Tax Deduction” to get the lowdown on whether you qualify for this deduction. And get tips on how to file for this deduction in “How to Claim the Tax Deduction for Business Use of Your Home”.
• Personal Vehicle Deductions – Another important deduction to understand is how to claim a deduction for business-related use of your personal vehicle. Read “Using Your Personal Vehicle for Business Purposes – Tax Deductions, Insurance and the Like!” to help you understand how the deduction works.
• Charitable Donations – The IRS enforces strict tax laws around charitable giving, read “Charitable Giving and the Tax Benefits for Small Businesses” to understand what you can and can’t deduct.

Avoiding Tax Audits

When Avoiding a Tax Audit – the Best Offense is a Good Defense – Though fewer than 1% of taxpayers are selected for a tax audit, business filings that report year-after-year losses, large charitable contributions, or claim large tax deductions may raise red flags for the IRS. Here is some guidance to file your tax return in a way that minimizes your chances of getting audited.

Additional Resources

Visit the Small Business Tax Center on Business.gov. This one-stop shop portal helps business owners stay abreast of tax requirements, tax changes and a whole range of tax tips to help you prepare for the year ahead.

If you have tax questions or tips you want to share with other small business owners, post them on the Business.gov Filing and Paying Taxes Discussion Board.

It’s that time again. Time for our daily roundup of top small business news from blogs we follow and other sources handpicked for your benefit by the Small Business Trends team. If you have a friend who values small business news, share this post with them today.

Marketing

What’s the buzz, tell me what’s happening? Here are some important guidelines for anyone interested in using Google Buzz in your marketing arsenal. Marketing Professor

Don’t fail to plan when it comes to marketing. Four simple steps can save you oodles of time and plenty of wrong turns. Bloggertone

Social Media

Talkin’ trash? Small Business Trends’ own Anita Campbell talks about freedom of speech in the new social media…and the responsibility that comes with it. Open Forum Innovation

Stories and conversations that position your brand. Tips for guerilla marketing in the world of social media. Closing Bigger

Finance

Why new credit card laws don’t apply to you. And why that may not be such a bad thing after all. Small Business Trends

Getting ready for a micro-audit. Even the smallest businesses aren’t below the radar of the IRS. Be sure yours is prepared. NASE

Operations

Home alone? When the only employee is you and your office is the couch or the kitchen table, consider these important productivity measures. Small Business CEO

How referrals can grow your business. And we’re not talking about the ones you get, either. Sales Tip a Day

Self-Development

Handling life’s little interruptions. When trying to run a business, things always get in the way. Stepcase Lifehack

Startup

How is building a business like having a child? Fresh from becoming a new father, Polish entrepreneur Karol Zielinski has some interesting insights. Karol Zielinski blog

Five reasons not to share equity. Why entrepreneurs may not want to offer their first employees a piece of the pie. Startup Nation

Tech

How is your small business using mobile technology? A recent report shows texting as the top form of mobile content usage. Is text marketing in your small business plan? comScore

Map out your favorite online small business tools. Check out a cool new interactive map tracking the growing list of tools you can use to promote your small business online and then suggests your picks. The Small BizNest

Policy

Is the economic recovery really a myth? Why government projections of an economy bouncing back may not have real validity. Reason.com

Thirty-six percent of Americans pay no federal income tax? This includes many families making over $50,000 a year but how does it compare with small businesses that are among the most likely to face audits. TaxProf Blog

As part of their mission to bring value to small business owners, Yelp is introducing the Yelp for Your Business webinar series that will offer advice on how SMBs can market their businesses using the site. It’s a smart move for both Yelp and its users. And even better, the first one kicks off this evening!

Appropriately, the first Yelp webinar will help small business owners learn how they can use the free tools on Yelp to promote their business, which I think is an area where many SMB owners could use a refresher. Back in August, I wrote a post about how to get the most out of Yelp, which touched on some of the lesser known features that Yelp offers specifically for small business owners through Yelp for Business. They included things like the Yelp dashboard, real analytics and how to get more from your Yelp profile. Today’s webinar should go into some more detail on those and hopefully touch on some of the new additions.

As a small business owner, it’s really important that you take the time to sniff out Yelp and learn about all the ways it can help your business. From allowing you to fight back against inaccurate reviews, manage positive ones, and now even track consumer patterns, they’re providing a whole lot of data and opportunity that SMB owners will want to be aware of. These webinars should give SMB owners a lot of insight both on what’s available to them and how to be leverage it. There’s nothing better than hearing “how tos” directly from the source to give you a competitive edge.

These webinars are also much needed for Yelp. Yelp’s been a beloved part of the local search community for some time, but new rumors about impropriety and extortion at the site are once again spreading. By opening up the window a little bit, they’ll give everyone a closer look at how the site works and increase the transparency inside Yelp. [Though, I personally find Yelp to be one of the more approach companies on the Web.]

As mentioned, the first webinar takes place will take place today at 6pm ET (3pm PT) and will be focused on all the free tools available through the site. If you’re a small business owner curious about why you should leverage Yelp, or if just want some tips on how to get started online, I’d encourage you to check out the new webinar series. To get more info on today’s webinar or to register, head to the webinar site.

Among the raft of recent proposals that President Obama announced during his State of the Union address was a plan to help Americans increase their retirement savings.

As reported by AP, the proposed package would guarantee all Americans access to a retirement plan through the workplace, increase tax credits to reward retirement savings, and increase regulation of 401(k) plans.

The proposal small-business owners will be most interested in is the “automatic IRA.” The proposed program would require employers who don’t offer a retirement plan to enroll employees in a direct-deposit individual retirement account. (Employees would have the choice to opt out.) Companies that have 10 or fewer employees or have been in business less than two years would be exempt.

Some 78 million workers do not currently have access to a retirement plan through the workplace. According to The Retirement Security Project, automatic enrollment has been shown to strongly increase participation in retirement plans, especially among low- and middle-income workers.

Supporters of the automatic IRA idea point out that it would be fairly simple for most small businesses to implement, and would help small companies compete with bigger ones that offer retirement benefits.

AARP, which supports the plan, notes that automatic IRAs are simplified accounts owned by individuals–not employer-sponsored retirement plans—so they are much less complex. There are no plan-qualification rules or IRS approvals; you don’t have to comply with ERISA; no employer contributions are required; and the employer has no responsibility to choose, hold or manage investments. Employers simply serve as a conduit helping employees put their own money into their own IRAs. Employers who don’t offer direct deposit would send contributions to the IRS along with tax withholdings.

A survey by the National Federation of Independent Business showed that nearly 50 percent of small businesses with 10 to 19 employees use an outside payroll firm. Of those that do payroll in-house, more than 80 percent use software. For companies that use payroll providers or software, automatic IRAs would easily integrate into the systems they already use. To offset administrative costs, employers would get a tax credit of $25 for each employee who chooses to save in an automatic IRA (up to $250) for two years.

Most companies that still do payroll by hand would be exempt from the proposal, although they could participate if they so desire.

Editor’s Note: this article was previously published at OPENForum.com under the title: “What Would Automatic IRAs Mean to Small Business?” It is reprinted here with permission.