Compliance with the myriad of federal, state and local tax laws is the most complicated and vexing legal issue you may face in running a small business.

The most common reason small-business people fail to comply with their tax reporting obligations is poor recordkeeping. Your best protective measure for avoiding fines and penalties is to keep good records.

Familiarize yourself with the IRS basics for small businesses at www.irs.gov/businesses/small. A tax professional who is familiar with the laws pertaining to small businesses is a crucial partner for helping you stay out of tax trouble.