Tax season is just around the corner, so now is a great time to make sure that you are retaining all the documentation you need to back up the income, deductions, and credits listed on your small business’s tax return. Keeping the proper records is not optional—it is required by the Internal Revenue Service (IRS).

Recordkeeping System

The IRS does not require a specific type of recordkeeping system. Rather, you must simply use one that clearly shows your income and expenses. Although the type of business you own affects the types of records you need to retain for taxes, in general, you should keep records (either hard copies or electronically) summarizing your business transactions.
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The COVID-19 Relief Bill: What Business Owners Need to Know Heading into 2021

On December 27, 2020, President Trump signed into law H.R.

Among those who desire to own their own business, many attempt to build a company from scratch. That, however, is not the only available option. Purchasing a company that is already in existence is a valid alternative. If you are interested in potentially acquiring a business instead of starting one from the ground up, there are several vital questions to answer.

• Do you want to purchase an independent business or a franchise? One decision you must make is whether you wish to buy a franchise or an independent company.
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As baby boomers begin to retire, the burden of making management decisions regarding their retirement assets may seem daunting. This is especially true for those who choose to forego using professional investment advisors and instead self-manage their assets. Despite the challenges, there are benefits to choosing to manage your retirement assets on your own, particularly if you are a business owner with expertise in the area in which you choose to invest your funds. The primary benefits associated with managing your retirement assets are:

• Exercising greater control over what types of investments you make,
• Enjoying greater flexibility in organizing these investments, and
• Avoiding high fees sometimes associated with having a financial advisor.

If you choose to pursue the DIY method, a reasonable option for you to explore is the self-directed Individual Retirement Account (IRA).
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If you are considering expanding your physical business or starting a home-based business, selling your products online is a great way to reach additional customers. Before you begin to sell products online, there are several legal issues you should be aware of to ensure that your business is compliant with the law and that your interests are protected.

Business entity. If you are starting a new business to pursue online sales, it is important to carefully consider the pros and cons of different business structures. A sole proprietorship is uncomplicated and inexpensive, as no separate business entity is formed.
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Data privacy laws requiring businesses to take steps to safeguard customers’ and employees’ personal information and to notify them if a breach occurs have been on the books for years. Recently, however, a new California privacy law—the California Consumer Privacy Act (CCPA)—was enacted guaranteeing consumers (but not employees--at least for now) the right to know what personal information is being collected and requiring businesses to respond to consumer demands for records showing all the personal information a business has collected about them and any third parties with which it has shared or sold their data, as well as requests to have their data erased and to opt-out of the sale of their personal information.

The new law becomes effective on January 1, 2020, and enforcement begins on July 1, 2020. Other states, including Hawaii, Maryland, Massachusetts, Mississippi, New Mexico, and Rhode Island, are following California’s lead and considering similar legislation. Because the California law will affect many small businesses, including some located in other states, and because it is likely that other states will adopt similar laws, it is important for small business owners to be aware of the new law and its potential impact on them.

The popular adage says, “sticks and stones may break my bones, but words can never hurt me.” For small businesses, this saying could not be further from the truth. The negative words and opinions of the public can have severe implications for a company’s reputation, financial profitability, and long-term success. This is especially true with the rise of social media, which greatly expands the reach of negative remarks and risk of negative implications for the business. If an individual or company makes false or misleading statements about your business, you may be able to bring a trade libel suit against them.
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For most business owners, employees, vendors, and customers are essential to keeping your business successful. When someone with inside knowledge about your vendors, employees, and customers leaves your company, your business becomes vulnerable to losing these critical assets to competitors. To protect your company from such risks, consider using a nonsolicitation agreement.

What Is a Nonsolicitation Agreement?

A nonsolicitation agreement creates a contractual relationship between an employer and an employee, restricting whom the employee can solicit after departing the company. These agreements prevent former employees from using information gained while working for you for the benefit of your competitors.
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One of the first decisions to make when starting a business is what type of business entity to form. The limited liability company (LLC) is one of the most popular business structures because it offers a level of flexibility and legal protection that is attractive to many people who are starting their own businesses. The following six steps will help you get started if you are interested in forming an LLC.

1. Choose a name. To form an LLC, you must select a business name that complies with state regulations.
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As a business owner, you may be considering leveraging social media to enhance your business’s engagement and reach. One way to do this is to employ the use of social media influencers. Social media influencers are individuals who have amassed large followings of people on various social media sites who trust their opinions on a variety of matters.

Many social media influencers develop specific niches and select one or two social media platforms for their focus. Due to the nature of popular social media sites such as Instagram, Facebook, Snapchat, YouTube, and Twitter, it is important to consider the legal issues that could arise during the various stages of a relationship.
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