The “gig economy” — the market for individuals providing services or working on projects on a freelance on-demand or short-term contract basis — has been a growing trend. While there are no official gig economy statistics available to measure its prominence, we can make some assumptions about its increasing popularity based on other available data.
According to information reported by the United States Census Bureau, the number of non-employer businesses, the group of individuals most likely to work on gig basis, was 24,331,403 in 2015. That’s 10% more than the 22,110,628 non-employer businesses in 2010.
And opportunity abounds for independent professionals who take on gig assignments. Many businesses outsource work to independent contractors and freelancers when their staffs are overwhelmed and to avoid the costs of benefits and ongoing payroll that come with hiring new employees. Continue reading
by Joe Heinrich, Volunteer Business Mentor, Seattle SCORE
Most small business owners are perfectly aware of the Federal, Washington and city taxes they are obliged to pay. However, the one that tends to fall through the cracks is the local Personal Property Tax on businesses by the county in which the business is located. This article explains what personal property is, how to self-report a business’s personal property, how the tax is assessed and how much a business may have to pay in Personal Property Tax.
What is “personal property” of a business?
Taxable Personal Property typically includes items used by a company to conduct business. Examples of personal property which may be assessed include furniture, fixtures, electronic equipment, telephones and machinery. Leasehold improvements and leased equipment are also included as personal property. However, personal property does not include property which is attached to a building or to the land which a business owns as that is considered “real property”.
Exempt personal property includes inventory (i.e., items owned to be resold or used as raw materials to products to be manufactured and sold) and vehicles used on the roadways. Continue reading
The process to change a business structure (for example, change from a sole proprietorship to a corporation) is the same as starting a new business.
Use the Business Licensing Wizard to get information and links that will help you do the following:
- Create your business structure with the Washington Secretary of State. (Skip this step if you are changing to a sole proprietor or general partnership.)
- Submit a new Business License Application to apply for a new Business License. You will be given a new Unified Business Identifier (UBI) number to be used on tax returns and other documents.
- Reapply for any applicable specialty, and/or city endorsements (for example, Nursery endorsements).
Note: You will probably need to re-apply for all of the licenses you currently have. For example, if you are a building contractor, you will need to reapply for your contractor’s license with the Department of Labor and Industries.
This information has been borrowed from the Washington State Business Licensing Service website. (link)
by Joe Heinrich, Certified SCORE Mentor
Nirvana would be that a small business owner could generate a deduction from her/his business’s taxable income at no cost. Well, that situation is available for many small business owners: the business use of the home deduction. However, not all of small business owners are taking advantage of this deduction due to not knowing about it or fearing that taking the deduction will trigger an IRS audit.
First, the facts. IRS regulations allow a business owner to take a deduction for the business use of the home, provided that the space is used “exclusively and regularly” for business purposes. The space can either be a room, a part of a room, a closet, the basement or garage, or a separate building on the home’s lot. Continue reading
Infographic #3: Small Business Owner Sentiment
SCORE latest infographic examines small business owner sentiments about the future. This infographic reports the findings of part 3 of The Megaphone of Main Street Small Business Jobs Report. Continue reading