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Question of the Month - March 2009"This is my first year being in the professional pet-sitting business and April 15 is just around the corner. Do you have any sage advice to offer a newbie filing first-time business taxes?" -C.B., Chicago, IL
A resource that is a must for anyone thinking of starting a business is the Internal Revenue Service (IRS). Their Web site, www.IRS.gov, is full of important information for business owners. If you don't have access to the Internet, call or visit your local IRS office to obtain publications that explain the types of business structures available (sole proprietor, partnership, corporation), the types of taxes that must be paid by businesses, what an Employer Indentification Number (EIN) is and how to apply for one. Accounting and bookkeeping systems are also important and is mandatory reading for a new entrepreneur, so make sure checking with the IRS is on your to-do list.
Another interesting Web site is www.business.gov. You'll find frequently asked questions about small business matters that will help you wade through government rules and regulations you need to be concerned with, depending upon the type of business you'll be running (no employees, with employees, etc.).
Do you have any helpful hints for filing taxes as a professional pet sitter? If so, send them in and they may appear in a future SCOOP newsletter.
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Failure to withhold, collect and pay required taxes can result in back tax assessments, along with interest and penalties. This is crucial to running a proper business. 
Your state tax department may have similar information available regarding state requirements for business owners. State taxes may include income, unemployment and sales tax. Most states do not tax personal services, such as pet sitting, but this is not true in every state.