Business is an activity that aims at making profit. However, profit-making is not the only objective. It has also become a consumer-oriented activity, in which you produce goods or services that people want and demand. This shift has affected the business concept. You are no longer solely responsible for what you produce; you are now personally responsible for the debts and liabilities of the business.

Profit-making is not the only reason for a business to exist

Profit is a necessary part of any business, but profit-making should not be its primary reason for existence. As Drucker argues, profit must be an important secondary purpose, but it cannot be the primary one. The primary purpose of a business is not to maximize its profit, but to achieve a level of profitability that allows it to bear the risks of financial activity while avoiding catastrophic losses.

Forms required to fulfill tax obligations for a business

If you own a business, it’s important to know what types of tax forms you need to file. Most tax preparation companies or software packages provide you with these forms, but you should also familiarize yourself with them to make it easier to fill them out. If you’re unsure of which forms you need, you can check the IRS website or consult a CPA to learn what you need to file and which ones you can skip.

A business must comply with federal and state tax laws. Depending on its location and structure, it pays different types of taxes. It’s important to choose the tax year that works best for your business. Most businesses will choose the calendar year. However, you can change your tax year later with the IRS’s permission. A calendar tax year is best for businesses without special accounting needs, while a fiscal tax year is ideal for businesses with specific needs.

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