On a conceptual basis, the biggest problem is that business owners don't think about it. And when they don't do that, they find out years later that there were tax consequences and they're now in trouble. Be aware that taxes permeate every aspect of your business. Practically every decision you make or every business activity you engage in that involves more than a small amount of money may have tax ramifications. Another mistake is borrowing from trust fund taxes.
Small businesspeople get in trouble a lot over payroll taxes.
And they've got bills to pay. And of course, when it comes time to send it in to the IRS, they don't have it. The one thing the IRS makes very sure of and audits very carefully is the payment of trust fund taxes. And what many small businesspeople don't realize is that they're personally liable for those taxes, even if their company is a corporation. They, as the owners or as the COOs of the corporation, have personal responsibility to get those trust fund taxes paid.