In the first part of this series, we introduced the dreaded idea of tax season and getting ready for it. As much as we all would love to ignore the whole process, it’s a must in the world of small business ownership. Here are more of the top ten tax tips according to www.AllBusiness.com, Accounting and Finance: 4. Sales Taxes. Most services remain exempt from sales tax, but most products are taxable (typical exceptions are food and drugs). If a business owner sells a product or service that is subject to sales tax, he or she must register with the state's tax department. Then taxable and nontaxable sales must be tracked and included on the company's sales tax return. Having what is considered a "presence" in a state is the criteria used by the IRS to determine whether or not you are liable for paying state sales tax. If you do not have a physical presence in another state, but sell items via the Internet or by catalog in that state, you can be subject to a state’s "use tax," but typically not to their state sales tax. A "presence" in another state does not necessarily mean that you have a retail outlet in that state. If you have an office, warehouse, or employees working for you in that state, the IRS may consider you to have a presence in that state. Make sure you are aware of your sales tax responsibilities in all states in which you are doing business. 5. Keep Tax Documents for at Least Seven Years. Good record keeping saves money. Some things like copies of business tax returns, licenses, incorporation papers, and capital equipment expenses should be preserved indefinitely. Keep any tax-related documents (e.g., expense receipts, client 1099 forms, and vehicle mileage logs) for a minimum of seven years. 6. Charitable Contributions. Unless your business is a C corporation, charitable contributions typically "flow through" the business and are claimed as deductions on the individual tax returns of the shareholders of the company. That's true whether you're running a sole proprietorship, partnership, limited liability corporation, or S corporation.
If you want to get the maximum tax benefits, you should know these basic rules: -Only contributions to charities listed as "qualified organizations" by the IRS are deductible. Consult IRS Publication 78 for a list of qualified organizations or search online at the IRS home page. -Contributions of more than $250 require a letter of receipt from the qualified organization. For contributions of less than $250, a canceled check is sufficient. -In general, donations of property can be deducted for their fair market value at the time of the contribution. You cannot deduct a contribution that has already been written off as a depreciated asset. -You cannot deduct the value of time or services that you volunteer. -You cannot deduct the part of a contribution that benefits you. If you receive a gift in exchange for a charitable donation, for example, you can deduct only the amount of the contribution that exceeds the value of the gift. -In general, you can deduct contributions only in the year you make them. Pledged contributions cannot be deducted until they are actually paid.
In the final part of this series, I’ll share the remainder of the top tax tips in order to help you out with tax preparation this year. | 
