As Vice Chair of the California State Board of Equalization (BOE), I regularly hear from small business owners who are caught off guard by tax liabilities. This isn’t surprising given the complexity of California’s tax laws. Even the most well-meaning, knowledgeable business owner can run into problems.
Because of this, I regularly host free small business and nonprofit tax seminars throughout my district to help business owners avoid these “tax traps.” (In fact, we’re hosting a series of events in the coming months designed to help small business owners be successful. Learn more at www.boe.ca.gov/events.)
For those of you unable to attend one of these free seminars, here are the top five tax traps to avoid:
1. Getting Stuck with a Prior Owner’s Tax Bill
Buying a business or stock of goods? You could become responsible for the seller’s unpaid tax, interest and penalties up to the purchase price of the business or stock of goods. Before buying a business, protect yourself from this liability by requesting a certificate of tax clearance by… Read More