Top tax trends small businesses should follow in 2010

As the end of 2009 tax season approaches, there are some new economic trends that might have an impact on businesses’ bottom lines in the coming year. One small business resource center offers some insight on trends that entrepreneurs might look out for in 2010.

To start, the source suggests that the IRS will be approving more tax audits this year. In light of the House’s recent approval of a $5.5 billion increase in the IRS’ 2010 budget, the agency will probably boost enforcement.

Additionally, the source predicts businesses will face additional taxes in 2010. As state and local governments work toward economic recovery, there may be increased taxes that force small businesses to help cover deficits.

Still, not all news is bad news. The source also theorizes that 2010 will see new benefits of incorporation for entrepreneurs who undergo business formation. Incorporation offers business owners protection of personal assets and a number of tax savings, but 2010 might up the ante in terms of the advantages incorporation offers entrepreneurs.

In addition to potential tax benefits incorporation will bring business owners this year, the self-employed might find there are other advantages. A report from the Medicine Encyclopedia indicates that unincorporated self-employed workers make less than those who have undergone business formation.