Thread: Loans?
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Old 10-13-2012, 08:49 PM
CL&T CL&T is offline
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Join Date: May 2011
Location: New York
Posts: 491
Quote:
Originally Posted by larryinalabama View Post
NOT Mine, Debt kills off more start up business than all other factors combined!
Probably true but you need to consider that debt isn't just about financing or loans. It's also about insufficient cash flow, insufficient startup capital and, what I've found to be the biggest killer- not paying taxes and the IRS and state padlocking the business.

That brings us back to the 1099 discussion. A business I know of had a girl in the office to answer the phones, etc. She had been with the company for a number of years and they always gave her a 1099. Come April she always paid her tax on the amount, maybe she did quarterly estimated payments. Point being she did everything right and had no idea she should have had witholding taken out and been a W2. So, one day the owner lets her go and she goes to the unemployment office. Anybody want to guess why this company is out of business? They also were giving 1099s to all their other employees.
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