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

Wait until April only

Answer

Skip taxes entirely

Answer

File a W-2

Question 2

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

Accepted Answer

Software subscriptions used for client work

Answer

Personal grocery shopping

Answer

A family vacation

Answer

A friend's birthday gift

Question 3

What is the benefit of a VA forming an LLC?

Accepted Answer

Limited personal liability protection

Answer

Exemption from all taxes

Answer

Guaranteed clients

Answer

Free health insurance

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

A verbal claim only

Answer

Deleting all records

Answer

A social media argument

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

To pay client salaries

Answer

To buy office furniture

Answer

To cover personal car repairs

Question 6

When setting rates, what should a VA factor in beyond just desired take-home pay?

Accepted Answer

Taxes, software costs, and unpaid admin time

Answer

Only the client's mood

Answer

The weather

Answer

A competitor's lunch menu

Question 7

What is a retainer agreement in VA work?

Accepted Answer

A prepaid block of hours or fixed monthly fee for ongoing service

Answer

A one-time tip

Answer

A legal subpoena

Answer

A refund request