Law regarding a tax compliance measure for small businesses has recently been changed to better help support small businesses. The law revision relates to the former requirement of small businesses to send a 1099 form to companies in which they had to purchase services that exceeded $600.00 annually.
Small businesses had been concerned about the requirement to track and file paperwork for the services in which the company has to purchase over the year in excess of $600.00. Small businesses claimed that the requirement would place hardship on small businesses that would have to take time away from productivity to dedicate time to potential mounds of paperwork. President Obama agreed with the contention of small business owners. Thus, the filing law is no longer a requirement.
Small businesses are the framework of the nation, particularly during difficult economic times. Laws the limit productivity and take away from time that companies can allocate to revenue generation may significantly impair the growth of a small business.
There are several types of companies that may fall into the classification of small business. The Small Business Administration defines small business as a company that is independently owned and operated. The definition also extends to the amount of revenue generated and the number of employees over specific time periods. Examples include:
* Manufacturing Business in which employee numbers may range from 500 to 1500, depending upon the specific industry product.
* Wholesale company in which the employee number may range from 100 to 500, depending upon the specific industry product.
* Services Company in which annual revenue may not exceed: $2.5 to $21.5 million, depending upon the type of service.
* Retail Company in which annual revenue may not exceed $5.0 to $21.0 million, depending upon the retail product.
* Construction in which annual revenue may not exceed $13.5 to $17 million, depending upon the work delivered.
* Trade Construction in which the annual revenue may not exceed $7 million.
* Agriculture in which annual revenue may not exceed $0.5 to $9.0 million, depending upon the agricultural product.
If you, your family or a friend need to protect their legal rights, contact PADOVE LAW, toll free at (877) 446 5294 for a free consultation.