US Hispanic Marketing

Tax Compliance: In most cases, your taxpayer identification number is your Social Security number. But if you have employees, a corporation or partnership, or a Keogh plan, you need a nine-digit Employer Identification Number. Visit the IRS Web site, for more information.

If you hire employees, work with your accountant to be sure you handle payroll taxes properly. Many entrepreneurs use independent contractors, rather than hire full-time employees. But if the person you consider an independent contractor is determined by the IRS to be an employee, you could owe substantial penalties and back taxes. Visit www.irs.gov for information on making this determination.

Your federal tax-filing obligations and due dates generally are based on your business's legal structure. In addition to your annual tax return, many self-employed individuals make quarterly estimated tax payments. For specifics, consult with your tax professional or visit www.irs.gov.

Sales taxes can be a sticky area for online sellers. Many large retailers now collect sales tax on Internet sales. Whether you need to collect state and local sales tax depends on several factors, including your products, your location and your customers' locations. Talk to your accountant or contact your state's revenue service to be sure you understand your state's rules. If you do charge sales tax, you need a sales tax ID number (also called a reseller's permit). Contact your state's department of revenue for more information.

Tax Planning: Periodically review your tax situation with your accountant and look for deductions that can offset income. Just beware, many deductions have restrictions, so consult your tax professional before claiming one. Some possible deductions:

Equipment Purchases: check with your tax professional for the amount you can deduct

Business Expenses: advertising expenses, employee benefit programs, insurance, legal and professional services, telephone and utilities, rent, office supplies, employee wages, membership dues to professional associations, business publication subscriptions

Auto Expenses: use of your car for business purposes
Meal and Entertainment Expenses: fifty percent of the cost of qualifying meals and entertainment

Travel Expenses: "ordinary and necessary" expenses incurred while traveling on business

Home Office: possible deduction if you use a portion of your home exclusively and regularly for business purposes

Startup Costs: startup advertising expenses; market or product research can be amortized over 60 months or more and used as deductions