Tax Tips For Small Business Owners
As a small business owner, it is important to have an accountant who can help you make the most of your tax situation from your personal income taxes to your business taxes. If you work as an independent contractor, or operate a business part-time, you will still need to file your income as a self-employed individual or as a part-time business owner. Your accountant can help you find the right balance between your business and personal income taxes to make sure you are receiving the best tax rate possible for both.
Finding a Tax Accountant
The first step to file your income taxes as a small business owner is to find a good accountant if you do not already have one. You want someone that does more than prepare personal income taxes. Look for someone who specializes in small business and can help with additional aspects like payroll services as your company grows. They can help you file your business taxes as well.
Choose How You Will File
If you have a small business with no employees, you may be able to file your business and personal taxes together using a Schedule C. This is a simple way to file, but it may not be the best option. According to the IRS, the type of business that you have (sole proprietorship, partnership, or a Limited Liability Company) will determine how you file your taxes. Your accountant can explain the pros and cons of each option to you.
Meet With Your Accountant
When you file using an accountant, you will meet with the accountant and give him or her your business and personal records for the year. This should include receipts for items that you want to write off for the year as well as the income and expenses for the business. The initial meeting will include a basic interview about your situation. You may meet one or two more times before the taxes are complete, or your accountant may call with questions about expenses or deductions that you qualify.
Pay Your Quarterly Taxes
As a small business owner, it is important that you pay your quarterly taxes on time each year. You can do this online by registering with the IRS or you can mail in your quarterly payment. Your accountant should be able to help you determine the amount you need to pay each quarter. As your business grows and you add employees, you will need to pay your monthly payroll taxes for them. This will change some of the structure in filing your taxes and the way you do your accounting.
To find a local accountant, contact a company such as UniqueTAXx AND ACCOUNTING.
