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3.2 The high cost of not paying your taxes

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When businesses are stretched thin, one of the more common bills to fall behind on is the tax bill. As a small-business owner, you probably have found that there are many different types of taxes that you are now obligated to collect and pay. However, unlike your electric bill, when you get behind on your tax bills, there is no immediate consequence. The first month you don’t pay your electric bill you may get a late notice. A month or so later the electric company may threaten to turn off your electric service and just a short time after that, you will lose your electricity. For business owners, this immediate impact is very concrete. Since almost all companies need electricity to stay open, the electric bill is usually paid. Most other bills, such as rent, cable, telephone, and employee salaries are very similar. After all, how long would your employees remain with your company if they were no longer getting paid? The tax bill, however, is quite different. When taxes are unpaid the consequences are much less noticeable at first.

19 Ways to Survive in a Tough Economy

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