#liability
Track and manage business liabilities and financial obligations
One missed Form 941 deposit draws a 2–15% IRS failure-to-deposit penalty, and unpaid trust fund taxes can become 100% personally yours under the TFRP.
DOJ and FBI live scan fees are a liability, not revenue — book only the rolling fee as income, and capitalize the $7,000 scanner or elect Section 179.
Truthful, documented references are protected by truth, qualified privilege, and state immunity statutes. What to disclose, what to never say, and the two traps small businesses miss.
Advance rent is taxable the year you receive it; a refundable security deposit is not income until you keep it. The split, the state escrow and interest rules underneath it, and the journal entries that keep both straight.
A rage room sells the destruction of its own inventory, so session revenue means nothing without a cost per smash. This guide covers revenue by package tier, standard-cost breakable COGS, e-waste disposal rules, workers comp classification, waivers versus insurance, and the 2026 Section 179 limit of $2.56 million for buildout and equipment.
Accountant malpractice claims require proving duty, breach, causation, and damages — and the math is narrower than most clients expect: penalties caused by the error are typically recoverable, interest often is not, and tax you legally owed almost never is. State deadlines run two to six years, and an engagement letter's liability cap may limit recovery to the fees you paid.
Florida, Texas, and Louisiana bar the company that assesses mold from remediating the same property for 12 months, so dual owners run two licensed entities — separate EINs and bank accounts, written shared-cost agreements, and monthly intercompany settlements are what prove the wall is real.
Negligent hiring claims come from customers and bystanders, not employees, and turn on one question — did you exercise reasonable care before this hire? Here is the screening routine (references, role-calibrated background checks, credential verification, documented rationale) and the FCRA, fair-chance, and EEO rules it has to satisfy.
An assignment for the benefit of creditors (ABC) lets an insolvent business liquidate under state law in months rather than a year, with an assignee the owner chooses instead of a court-appointed trustee — but it carries no automatic stay and no debt discharge. Here is how the five-step process works, how it compares to Chapter 7, and the bookkeeping that keeps a wind-down orderly.
Ten US states run container-deposit programs with deposits from 5 to 25 cents, and retailers must ring them as a separate line, take back empties of brands they sell, and book them as a liability rather than revenue — while handling fees of roughly 1 to 5 cents per container are the only part that is income.
An asset purchase does not automatically leave the seller's unpaid state taxes behind. State bulk sale statutes make the buyer liable unless notice is filed before payment or possession — New York requires Form AU-196.10 by registered mail 10 days ahead, California requires a CDTFA clearance certificate rather than escrow alone, and Illinois and Pennsylvania extend successor liability to income taxes. Here are the clearance rules, the non-tax liabilities that ride along, and a seven-step checklist to run before closing.
Since July 1, 2026, Washington homeowners can collect up to $25,000 of an unpaid contractor judgment from the state's Homeowner Recovery Program, after which L&I can pursue the contractor for reimbursement with interest on payment plans of up to 36 months. This guide explains the eligibility rules, the post-2024 bond levels of $30,000 general and $15,000 specialty, and how a residential contractor should log disputes, accrue probable losses under ASC 450, fund a separate cash reserve, and amortize a state repayment plan in a plain-text ledger.
