Is your business growing?
September 24, 2007
In this installment of our business-tax series, Joetta shares her gardening savvy and Jay offers business solutions.
Gentle readers, are any of you gardeners? I am always amazed that we put tiny seeds into the ground, confident of an abundant harvest for our labor. I suppose the same may be true of your business. You’ve planted the seeds of your dreams, anticipating great things to grow from those tiny sprouts. And now, seemingly right before your eyes, it’s happening. Your business has taken off. But just like my garden, if you leave things alone, you might have some unexpected results down the road. You’ve invested too much time, effort and treasure to let it go now. It’s time to do a little hoeing, some weeding, and a bit of pruning so the plants will thrive and branch out to give you the best results possible.
As you survey your business “garden,” here are a few things to consider:
Do you need to open a withholding account?
When you first started the business, you and your family were able to pitch in and get everything done. Lately, that’s getting more and more difficult to do, so you’ve decided to hire some help. That means you’ll now have an employee or employees. And that means you need to withhold taxes – and open a withholding account. To establish an account, complete Form BT-1 to get the process started.
Is it time to add more locations?
More and more, you’ve seen a need that you can fill. It’s time to expand the business and branch out into some new areas. Just like some of the garden plants that need to be divided and spaced apart for the best possible growth, it may be time for you to add additional locations. Use the Form BT-1 to add locations, because – if you’re making sales -- you will need a Registered Retail Merchant’s Certificate for each location.
Do you need to start making, or increase, your estimated tax payments?
Maybe you’re bringing in more income than you had anticipated. Information Bulletin 3 will help you determine if you need to be making estimated tax payments, and how much you should pay. Check your estimated tax account balance to see if you’re on track to have enough paid in. Penalties for underpaying estimated tax can be like weeds running rampant. Prevention is the key here.
Does your original tax registration still fit your needs?
You may have registered as a sole proprietor in the beginning, but things have changed. Now that others have noticed your success, they may be interested in going in with you to form a partnership. You may even be considering a corporate registration to cut your personal liability exposure. Check out the IRS Web site for information on which type of business filing meets your needs. If you make any changes, just let us know by updating your registration via Form BT-1.
Are you so overwhelmed that you need to seek professional tax help?
You may need to consider seeking professional accounting or tax help as your business grows, especially if you begin to do business across state lines. As those vines of your business branch out, you may need to hire employees or collect sales tax in other states. You may want to contact the other state or seek someone knowledgeable about doing business in the other states.
Congratulations on the success of your business! Autumn is here, and many of the crops are ripe for the pickin’. Don’t forget to kick back a moment with an ice-cold lemonade (or a mug of hot cocoa – this is Indiana weather, after all) and enjoy the harvest. You deserve it.
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- How can I check on my State income tax refund?
- How do I obtain a state tax number to collect sales tax?
- Who can I contact about Indiana income tax?
- Where do I go for tax forms?
- Where is my state tax refund?
- I filed my Indiana tax return. I owe, but am unable to pay at this time. What sh...
- I worked in Indiana six months. Then I worked six months in another state. How s...
- Know when I will receive my tax refund.
- File a part-year Indiana tax return.
- File my taxes as an Indiana resident while I am in the military, but my spouse is not an Indiana resident.
- Take the renter's deduction.
- Pay my tax bill in installments.
- Claim a gambling loss on my Indiana return.
- Have more time to file my taxes and I think I will owe the Department.
Welcome to Tax Talk, hosted by DiB (dye-bee), the Indiana Department of Revenue’s individual income tax guru. DiB, who says she’s been with the Department “since the earth cooled” (though it’s actually 30+ years), writes and develops Indiana’s individual income-tax instruction booklets and forms. DiB created Tax Talk to address Indiana individual income tax questions and issues during the filing season. If you would like to submit a question or topic suggestions, please send those to DiB at feedback@dor.in.gov
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