The Tax Traps Small Business Owners Miss

The IRS doesn’t care if you’re new to business or running lean — one slip and the penalties start stacking. Most small business owners don’t fail because of lack of hustle, they fail because of tax landmines they never saw coming.

Here are the biggest traps I see:

1. Mixing Personal and Business Money
   Swipe your business card for personal expenses and you’ve just made an audit easier.
   
   

2. Forgetting Quarterly Taxes
   Skip estimated payments and the IRS adds penalties on top of what you already owe.
   
   

3. Misclassifying Workers
   Calling an employee an “independent contractor” to save payroll taxes can cost more in back pay and fines.
   
   

4. Ignoring Sales Tax Obligations
   Sell online or across state lines? States are waiting to collect, and ignorance isn’t a defense.
   
   

5. No Documentation
   Deductions vanish if you can’t prove them. Receipts matter more than memory.
   
   

The Fix?
Get proactive, not reactive. A solid tax plan saves money, builds credibility, and keeps the IRS out of your pocket.

📘 Want to make sure your setup is airtight? [Book a tax strategy session.]