Walked past my favorite East San Diego bar yesterday.
Empty.<\/p>\n\n\n\n
Stools flipped.<\/p>\n\n\n\n
“Closed Permanently”<\/strong> sign in the window.<\/p>\n\n\n\n Not because their cocktails weren’t amazing. But because of what I call the “San Diego Small Business Tax Trap.”<\/p>\n\n\n\n After years of helping local businesses here (while the Navy’s kept us stationed in America’s Finest City), I’ve watched too many San Diego dreams die because of three lethal tax mistakes.<\/p>\n\n\n\n “But we were packed every weekend!” he told me. Mistake #1: The Cash Flow Confusion<\/strong> Mistake #2: The Employee\/Contractor Crisis<\/strong> Mistake #3: The DIY Disaster<\/strong> Here’s what kills me:<\/strong><\/p>\n\n\n\n That’s why every time I see a new bar open in San Diego, I’m not just thinking about their drink menu… Because in San Diego? Running a San Diego small business?
(Trust me, they were)<\/p>\n\n\n\n
That bar owner?
Called me last week.
Too late. (way too late)
IRS had already emptied his accounts.<\/p>\n\n\n\n
(Packed doesn’t mean profitable)<\/p>\n\n\n\n
They’d look at their POS system nightly.
Bar tabs flowing = success, right?
Wrong.
They forgot about the silent partner taking 30%+ off the top.
(Hint: Uncle Sam doesn’t accept happy hour specials as payment)<\/p>\n\n\n\n
Treated all his bartenders as contractors.
“They set their own schedules!” he argued.
IRS disagreed.
$180,000 bill.
Goodbye craft cocktail dreams.<\/p>\n\n\n\n
Did his own bookkeeping after midnight shifts.
“QuickBooks makes it easy!” he said.
Missed payroll deposits.
Three years later?
IRS bill bigger than his liquor inventory.<\/p>\n\n\n\n\n
I’m wondering if they know what’s coming.<\/p>\n\n\n\n
Perfect weather and ocean views aren’t enough to save your business from an IRS storm.<\/p>\n\n\n\n
Not sure about your tax situation?<\/p>\n\n\n\n