Small Time Operator: How to Start Your Own Business, Keep Your Books, Pay Your Taxes, and Stay Out of Trouble

by Bernard B. Kamoroff

Overview

Here is the help you need to take control of your life and be a success, on your own terms:

• Getting all your permits and licenses
• How to finance your business
• Creating and using a business plan
• Do you need to incorporate?
• Keeping your records: quick and easy
• Federal, state and local taxes
• Insurance, contracts, trademarks
• Dealing with—and avoiding! —the IRS

...and much more.

Product Details

ISBN-13:	9781493073719
Publisher:	Rowman & Littlefield Publishers, Inc.
Publication date:	11/07/2023
Edition description:	Sixteenth Edition
Pages:	264
Sales rank:	76,529
Product dimensions:	8.30(w) x 10.90(h) x 0.70(d)

About the Author

Bernard B. Kamoroff is a CPA with over 30 years of experience specializing in small business. A University of California lecturer, he is the author of five books on business and taxes, and has operated three of his own small businesses.

Table of Contents

	Foreword: Be Your Own Boss	5
Section 1	Getting Started	11
	Getting Started: Basics
	A Small Time Operator: A True Story	13
	Kinds of Business	13
	Business Failure Rates	14
	Can You Do It?	15
	Your Idea, and the Market	16
	Business Location
	Choosing a Location	17
	Zoning	18
	Leases	19
	Rural Businesses	20
	Financing
	How Much Do You Need?	20
	Start Up Capital	21
	Self Financing	21
	Debt Financing	21
	Bank Loans	22
	Other Loan Sources	22
	Small Business Administration (SBA)	23
	Loans to Yourself	24
	Equity Financing (Investors)	24
	Limited Partnerships	24
	Limited Liability Companies (LLCs)	25
	Venture Capital	25
	Legal Structure
	Different Legal Structures	25
	Sole Proprietorship	26
	Choosing a Business Name	27
	DBA / Fictitious Name Statement	28
	Trademarked Names	29
	Licenses and Permits
	General Information	29
	Local Business Licenses	29
	Other Local Permits	30
	State Licenses	31
	Sales Tax and Seller's (Resale) Permits	32
	Use Tax	34
	Other State Regulations	34
	Federal Identification Numbers	34
	Federal Licenses	35
	Federal Trade Commission Rules	35
	Insurance	37
	The Business Plan	42
Section 2	Bookkeeping	45
	Warming Up to an Unpopular Subject
	Why Keep a Set of Books	47
	IRS Requirements	47
	Setting Up Your Books	48
	Hand-Posted Versus Computer Ledgers	48
	Computer Software for Bookkeeping	48
	Business Bank Accounts	49
	Bookkeeping Simplified
	Introduction to Single-Entry Bookkeeping	50
	Cash Accounting Vs. Accrual	51
	Recording Income	53
	The Income Ledger	54
	Sales Returns	55
	Installment Sales	56
	Return (Bounced) Checks	56
	Credit Sales	57
	Direct Credit	57
	Finance Charges	58
	Credit Ledger	58
	Accounts Receivable	58
	Your Credit Customers	59
	Uncollectible Accounts	60
	Credit Cards	60
	Debit Cards	62
	Recording Expenditures	62
	The Expenditure Ledger	62
	Checkbook and Ledger Combined	63
	Posting The Ledger	64
	Accounts Payable	67
	Petty Cash	67
	Calculators and Adding Machines	68
	Financial Management
	Profit and Loss Analysis	69
	Cash Flow Projections	70
	Inventory Control	71
Section 3	Growing Up	73
	Business Growth	75
	Hiring Help
	Employees Vs. Independent Contractors	76
	Steps to Becoming an Employer	80
	Federal and State Requirements	80
	Federal Procedures and Taxes	81
	Family Employees	84
	Payroll Ledgers	84
	Partnerships	86
	General Vs. Limited Partnerships	86
	Partnership Agreements	87
	You and Your Partners	88
	Partnership Bookkeeping	89
	Partnership Post-Mortem	90
	You, Incorporated
	A Corporation Primer	91
	Limited Liability	92
	Change of Ownership	93
	Owner-Employees	93
	Retained Earnings	94
	S Corporations	94
	Close Corporations	95
	Steps to Incorporating	95
	Articles of Incorporation	96
	Incorporating an Existing Business	98
	Limited Liability Company (LLC)	98
Section 4	Taxes	101
	Deep in the Heart of Taxes	103
	Accounting Period: Calendar Vs. Fiscal Year	104
	Who Must File	105
	Which Returns to File	105
	Filing Dates	106
	Tax Calendar	106
	Business Expenses
	Basic IRS Rules	109
	Start-Up Expenses	110
	Prepaid Expenses	110
	100 Typical Expenses	110
	Inventory and Cost-of-Goods-Sold	113
	Assets: Machinery, Equipment, Furniture, Etc.	116
	Depreciation	117
	Vehicle Expenses	123
	Repairs	124
	Bad Debts	124
	Casualty and Theft Losses	125
	Donations	125
	Interest	125
	Entertainment	125
	Business Gifts	126
	Meals	126
	Travel and Business Trips	126
	Dues	128
	Freight	128
	Education Expenses	128
	Insurance	128
	Health Insurance	128
	Non-Deductible Expenses	128
	Self-Employment Tax	130
	Retirement Deductions	131
	IRA (Individual Retirement Account)	132
	SEP (Simplified Employee Pension Plan)	132
	SIMPLE Plan	133
	Qualified Plans (401k, Keogh)	133
	Other Small Business Tax Issues
	Estimated Tax Payments	134
	Barter	135
	Operating Losses (NOL)	135
	Year End Tax Strategies	136
	Tax Credits	137
	Tax Software	138
	The Internal Revenue Service
	The IRS and You	138
	Business Losses and Hobby Loss Rule	139
	Audits	140
	Penalties	140
	Failure to File	141
	Amending Old Returns	141
	Federal Information Returns	142
	Excise Taxes	143
	State and Local Taxes
	State Income Taxes	143
	Gross Receipts Taxes	144
	Other State Taxes	145
	County, City and Local Taxes	145
Section 5	Home Business	147
	Home, Inc.	149
	Types of Businesses (and Possible Problems)	150
	The Well Hidden Home Business	151
	Post Office Boxes	151
	Deliveries	151
	Zoning	152
	Housing Restrictions	153
	Setting Up Your Office	153
	Telephone	154
	Insurance	156
	Income Tax Laws	157
	Home Office Deduction	158
	Outgrowing The Home	161
Section 6	Your Business	163
	How to Balance a Bank Account	165
	Balance Sheets	167
	Professional Help
	Accountants	168
	Attorneys	169
	Bookkeepers	169
	Husband and Wife Businesses	169
	Partnership, Sole Proprietor, or Corporation?	169
	Income and Payroll Taxes	170
	Spouse as Employee, and Fringe Benefits	170
	Two Separate Businesses	172
	Multiple Businesses (More Than One Business)	172
	Import and Export Businesses	173
	Buying a Business
	Independently Owned Businesses	175
	Franchises	179
	"Business Opportunities"	181
	Freelancers, Professionals, Consultants	181
	Independent Contractor Status	181
	Royalties and Advances	182
	Legal and Management
	Pricing	182
	Trademarks	184
	Patents	187
	Copyrights	189
	Contracts	191
	How To Avoid Crooks	193
	The Internet	196
	Business on the Internet	196
	Market Research	196
	Web Sites	197
	Domain Names	198
	Web Hosting	199
	Web Site Design	200
	Shopping Carts	203
	E-Mail	204
	Links	205
	Security	206
	Managing and Marketing Your Business	207
	The Future of Small Business	208
	The Annual Update Sheet	208
Section 7	The Ledgers	209
	Income and Expenditure Ledgers
	Year End Summaries
	Depreciation Worksheet and Equipment Ledger
	Credit Ledger, Payroll Ledger, Partners' Capital
	Petty Cash Ledger, Inventory Record
	Index	223

Editorial Reviews

Very well done, and should be of great help to anyone starting their own small business.

Washington. D.C. U.S. Small Business Administration

This book is an extremely refreshing guide to starting and operating your own business.

National Society of Public Accountants

Head and shoulders above all the other business help books, but there’s nothing ‘small time’ about it. It’s complete, and it belongs on your desk.

American Association of Small Business Employers

Everything you need to know for opening day but don’t know enough to ask. Particularly good on the basics of getting started.

Chicago American Library Association

The most successful book of its kind ever printed.

Nolo Press Law Books

This book is an extremely refreshing guide to starting and operating your own business. —National Society of Public Accountants

Everything you need to know for opening day but don’t know enough to ask. Particularly good on the basics of getting started. —American Library Association, Chicago

The best of the genre. A remarkable step-by-step manual that is a delight to read. —Library Journal, New York

Very well done, and should be of great help to anyone starting their own small business. —U.S. Small Business Administration, Washington. D.C.

Head and shoulders above all the other business help books, but there’s nothing ‘small time’ about it. It’s complete, and it belongs on your desk. —American Association of Small Business Employers

The most successful book of its kind ever printed. —Nolo Press Law Books, Berkeley, CA

From the Publisher

Much more than just another business guide. It's the industry bible for anyone starting out in a small business.

Midwest Review/WYOU-TV

12/01/2015
Small Time Operator concentrates on the legal and accounting aspects of starting and running a small business—those aspects of an operation that are very difficult and that many owners will try to avoid. The book is easy to read and could function as a reference text.

Library Journal