Am I responsible for taxes if I have a business name?

July 8, 2005

Subject:  Tax Advice
From:  John
Date:  Sat, 25 Jun 2005

I recently registered a small business name. Am I initially responsible for any taxation? If I conduct no business, am I accruing tax debt?

Answer

Date:  Fri, 01 Jul 2005

Hello John,

The only tax debts I can think of that you might be "accruing" are for your business license and any personal property taxes. If your business is organized as a corporation, limited partnership or limited liability company, you could also be liable for minimum franchise taxes. You either need to hire a tax consultant or invest the time to study how a small business works and how a small business is taxed.

Good luck!
Mike Gray

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