Even if you haven't made any payments on your taxes so far this year, it's not too late. As long as you pay the required amount of taxes before the last day of 2007, you won't have any problems. If you wait even one day into the New Year, though, you will be assessed penalties and late fees, which quickly rack up, depending on how long it takes you to pay the debt. The Internal Revenue Service makes it convenient for businesses and individuals to pay their required taxes. With online and phone payment options, it's easier and quicker to pay, enabling you to avoid ever being late. Despite what many business owners may think, when it comes to taxes, you must ensure that you pay all taxes, and not just federal or state. Some large cities require you to pay city taxes as well, and there is also FICA and Medicare taxes to be paid, just like an employer would take out of your check if you had a regular job.

Taxes are an essential part of owning a business and can mean the difference between a successful business and an unsuccessful one that goes bankrupt. If you fail to pay taxes regularly, or attempt to hide exactly how much income you are truly earning, the government could find out and issue an audit which could result in you paying hefty fines, possibly leading to the loss of your business. An audit is when the Internal Revenue Service issues demands for you to prove your income, expenses, and anything else related to your business and personal taxes. You could end up enduring a lot of unnecessary stress, which can usually be avoided if you are honest and responsible when it comes to your business finances.

Many people enjoy the freedom and flexibility of owning their own business, but there are more things involved in running a business than just completing the actual work for your customers. You must keep meticulous records or each and every expense that you incur, and the income that you earn. Secondly, and just as importantly, you need to pay taxes on the income earned in a timely manner. If it's easier for you to pay taxes every time you get paid, then that's quite all right, but many business owners prefer to pay quarterly. It doesn't matter when you pay, though, as long as they're paid in-full before the end of the same year.