1If you have a home office and misuse the rules on home-office tax deductions, you may be denied not only that write-off, but all home-office deductions.

2Before hiring, you should check the background of any employee who will have constant access to cash, checks, credit card numbers, inventory or any items easily stolen, or the computer programs that attach to payroll or accounts payable.

3Owner and business tax returns must jibe or you leave yourself open to audit reviews.

4Be prepared for IRS new 1099 reporting requirements.

Payments to corporations would require a 1099 when they exceed $600 annually/Independent contractors would be subject to withholding if they do not provide a valid TIN/Landlords would have to file 1099s on payments to service providers such as plumbers and carpenters)

5Although it's tempting to classify workers as independent contractors you are exposing yourself to new IRS and state violation penalties.