Small businesses are privately held companies, partnerships, or singular proprietorships that have fewer employees than a large corporation or business and/or less yearly revenue than a normal-sized enterprise. A small business is a separate legal entity from its owners, with limited liability. This type of entity is allowed to conduct its own trading, buy and sell transactions, enter into stock exchanges, and operate their own banking. They are allowed to use their own banking system. In other words, a small business can have as many banking options as the owners choose.
Most small businesses have only one class of employee – the owner. This employee is considered the “sole proprietor” of the small business. As a sole proprietor, they have all the rights, privileges, and obligations of a sole proprietor. The sole proprietor is allowed to enter into contracts, own property, hire employees and sue other parties when required by law. This applies whether the business is conducting business online or not.
In order to assist small businesses in complying with their respective state and local regulations, the Small Business Administration (SBA) was created in 1965. The SBA is an independent government agency charged with helping small businesses throughout the country with important and necessary business assistance. There are several programs the SBA offers to help small businesses, and they include: Programs for Small Business Owners, which provides grants and loans to qualifying small businesses; Program For Women Business Ownership, which provides scholarships and training for women owners; and Business Development For Minority People and Women Business Owners, which help these same ethnic groups with financing, business advice, and business growth. The SBA also administers the Public Accountable Service (PAAS) program, which is a program for small business debt relief.
All states require businesses to keep a certain amount of employee stock. To comply, most small businesses obtain employee stock options. Options can range from traditional nonqualified stock options to “call” options, which give the option holder the right to purchase shares at a pre-determined price on or before a specified date. Call options allow the employee to purchase a small amount of shares at a time for a set price, at any time.
Most small businesses need a good source of water. For this purpose, most small business organizations carry clean well equipment. Some small businesses have combined water purification and filtration technology, resulting in a more effective and cost-effective way of treating their water. Others have invested in water treatment equipment that uses carbon filtration to reduce the chlorination chemicals found in tap water. These smaller water treatment centers can meet all city and county regulations for safe, great-tasting water, and provide the quality management services needed to ensure the safety and purity of our drinking water.
One of the largest problems faced by small businesses is the compliance requirement for IRS tax laws. Many small businesses are forced to deal with an overloaded tax department, with limited resources, as well as other responsibilities, such as accounting, which can be complicated and tedious. Some businesses choose to outsource these responsibilities to a professional CPA or tax attorney, relieving the small business of many of their burdensome tax burdens, while protecting their income tax return.
In my opinion, there are too many opportunities for abuse in the small business environment today. I have personally witnessed many abuses of power and wealth, as well as the mismanagement of company assets and funds. Unfortunately, not every case is reported to the proper authorities. One such case involved a small corporation where the CEO and majority stock holders had already been convicted of securities fraud, and the company’s assets had already been seized. While these cases may seem extreme, they are not isolated, and I am aware of several others. These are only two examples of the abuse I have personally witnessed.
The IRS continues to grow with an unwarranted desire to criminalize the common man. One would think that the agency’s mission would be geared towards helping small business owners and keeping them financially secure. The IRS needs to focus on its mission of financial responsibility, instead of becoming another responsible sector. Hopefully, this article has shown why the IRS needs to curb its excessive appetite for harassment and punishment, and keep its eyes on the goal of restoring tax payers’ confidence in their government.