America’s Small Businesses Are Playing a Dangerous Tax Game | Opinion
Summary
The article argues that small-business owners should consider tax effects throughout the year, especially as they hire across state lines, acquire property, or change ownership. It cites research on interstate hiring and warns that business tax decisions can affect owners’ personal finances, payment obligations, and future gains.Key Facts
- The article cites an October analysis by Gusto, a payroll and human resources platform for small businesses.
- Gusto’s analysis found that about one in 10 small businesses opening a second location expanded into another state.
- Nine in 10 businesses entering a new state did so by hiring one employee, according to the analysis.
- About five in six of those states had no physical office, according to the analysis.
- The article says hiring in another state, acquiring property, admitting a partner, or relocating may create tax considerations depending on the circumstances and state laws.
- The article notes that business income may be taxed at the business level, the owner level, or both, depending on the business structure.
- It says an extension generally gives taxpayers more time to file a return, not more time to pay taxes owed.
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