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Small Business Taxes - Know Who is Your Enemy?
by Brian J. McGinn Accounting & CPA FirmsRunning a business may come naturally to many of you. Once you discover that you have a gift for managing and running an entire business on your own, the path to success is almost clear. However, for most small business owners, the catch comes when it is time to deal with the tax situation. It is often confusing to understand the terminology and all the processes involved. You can always get the assistance of authorized tax consultants to help you get a better idea of the entire system.
The first barrier can be overcome if you have a clear idea of the following:
- What kinds of taxes exist and which you need to pay
- How much of your earnings will you have to pay
- When is the period you will have to pay
- Which methods are available for paying your taxes
Once you are aware of the above facts, the next step is to understand how to manage your income and balance between earnings and tax deductions. You cannot blindly take steps that affect the overall business financial situation. You need to figure out the factors that affect the business income and relate them to the small business tax situation. For this, consider the below:
- Get help to choose a wise legal structure for the company
- Lower the tax bill by using appropriate tax deductions
- Calculate the initial start-up costs, expenditure and income of the firm
- Pay all the quarterly taxes on time
- Make a note of all the additional tax payments that a business can incur
Types of Taxes that concern a Small Business Owner
The different kinds of taxes you should know about as a small business owner are mentioned below:
- Federal Income Tax
- State Income Tax
- Payroll tax
- Sales Tax
Another piece of advice when the financial year begins would be to keep all your documents updated. File all your receipts and maintain the expense accounts accurately. This will help you to create a balanced and correct income tax statement when it is needed.
Finally, take note of the main documents that are necessary to file your tax returns. The most important ones have been listed here.
- Tax returns of the previous year
- Any of the depreciation schedules
- All the accounting documents
- Major and minor partnership deals and agreements
- Salary statements
- Credit card statements
- Payroll documents
To understand the terms and conditions of the small business tax scenario, always get the advice of a reliable and professional tax accountant. Hiring a business accountant is a wise move as this will help you focus more on improving and achieving your business goals while the financial situation is being handled well by an expert.
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About Brian J. McGinn 
Accounting & CPA Firms
19 connections, 1 recommendations, 76 honor points.Joined APSense since, March 6th, 2018, From Sarasota, United States.
Created on Dec 9th 2019 06:14. Viewed 607 times.
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