With the tax season upon us, small business owners, like every taxpayer, often have difficulty understanding the complicated tax codes.Given the amount of intricacies, it is not easy to get a grasp of thevarious taxation policies. Often small businesses struggle becausethey try to do things themselves or because they did not hire the right accountant.
Sole proprietorship refers to the simple idea of obtaining a license and conducting business. Under such a scenario, an owner can reportany business profit or loss on his own personal income taxes. This means the entrepreneur uses his personal Social Security number andhis tax payer identification number for business transactions.
CPAs or Certified Public Accountants belong to that segment of small businessowners whose line of service is falling prey to technology. With majority ofpersonal tax returns filed online, CPA businesses are fast losing its significancein the service market.