Several small businesses have for years relied on cash as a way to avoid paying tax on all income earned. The downside is if that cash is invested any way into the business, other records may raise a flag. There are also businesses that some consider a Hobby and treat the cash as if it was receiving a paycheck with no deductions which can hurt a business. Sometimes a Hobby business grows and when it does taxes must be paid.
Read more: The most common small-business tax misconceptions
Leave a Reply