Key Tax Issues for Small Businesses
Don't scramble to get all your finances together a few days before the deadline. If you do, you're setting yourself up for disaster.
What will you need to gather?
You want to make a thorough accounting of all income and expenses associated with your small business, so save these documents too:
If you have easy access to these receipts and documents, you'll be more accurate when it comes time to file your small-business tax returns. Plus, you can deduct your small-business expenses to save money on your taxes. You're allowed to deduct "ordinary and necessary" expenses your business incurs, which lowers the amount you owe in taxes. Take advantage of these tips to keep from overpaying your taxes each year:
As a small-business owner, you'll have to meet multiple deadlines. Not all deadlines apply to every kind of business, but there's a lot to go through. A look at Publication 509, Tax Calendars will give you an idea of how complicated this can get.
The quarterly estimated small-business taxes can be calculated by estimating your expected adjusted gross income, taxable income, deductions and tax credits for the year. The best gauge is to use last year's taxes as a guide. The IRS's Estimated Tax Worksheet can help you calculate how much you'll owe in estimated quarterly small-business taxes.
Finally, keep in mind that this is just an introductory guide to what can be complicated laws and regulations, with lots of exceptions and subtleties. Not all deductions noted here are available in all situations. Be sure to consult a tax professional to make sure you are properly taking the right deductions for your business.
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