Small biz in operation for 8 months but not paying taxes?

xm_dan · 10-05-08

My mom and dad are running a T shirt screenprinting business with 2-3 employees. They are doing wholesale only. They have a state business license but that's it. They do not take out taxes when they bill customers or when paying the employees. They bill out between $5k and $10k per month.What do they need to do? I've tried to give them advice. They are procrastinators. (like me) I feel if they don't straighten out things soon, they could lose their business...

Judy · 10-05-08

They need to see a CPA asap who can advise them on what they need to do. They have already broken a few laws. They could lose more than their business - they could also lose their personal assets.

vb · 10-05-08

They have effectively put themselves out of business.The penalties, fines and interest for not doing proper sales taxes and proper employee withholding will be prohibitive.

wartz · 10-05-08

As wholesalers, they should not have sales tax problems but need to withhold taxes from employees wages. They seem like poster children for business where the owners know how to move their product but haven't a clue how to run the office.

AFashionableLife · 24-05-09

Get your parents a good accountant..NOW!

Cheers,
Jamie.
A Fashionable Life.