Virtual Assistant Financial and Legal Practices 4

Question 1

A US VA expects to owe more than $1,000 in taxes for the year. What should they generally do?

Accepted Answer

Pay quarterly estimated taxes

Answer

Self-employed individuals usually must make quarterly estimated tax payments to avoid penalties.

Question 2

Which of these is a common deductible business expense for a VA?

Accepted Answer

Software subscriptions used for client work

Answer

Tools and software used directly for the business are ordinary, necessary deductible expenses.

Question 3

What is the benefit of a VA forming an LLC?

Accepted Answer

Limited personal liability protection

Answer

An LLC separates personal assets from business liabilities, offering legal protection.

Question 4

A client disputes a charge claiming work was never delivered. What best supports the VA's position?

Accepted Answer

Documented deliverables and time logs

Answer

Clear records of completed work and time tracking provide evidence in a dispute.

Question 5

Why might a VA carry professional liability (errors and omissions) insurance?

Accepted Answer

To cover claims of mistakes or negligence in their services

Answer

E&O insurance protects the VA against claims arising from errors in their professional work.

Virtual Assistant Practice Test