How to do Taxes as a Small Business Owner
It’s challenging enough to run a business without adding the additional complication of filing taxes each year. Making financial decisions without contacting an accountant or financial consultant can put you at risk and ultimately cost you more money. Working with your accountant throughout the year, rather than just while preparing your tax return, is the key to saving you time and all that headache.
What kind of taxes should you pay as a small business owner?
Well, that all depends on your location and how your business operates. Keep your business in good legal standing by staying up to date with your tax reports and filing them accordingly to meet the requirements needed by the government.
When should you pay taxes? What are your tax obligations as a business owner?
Here are some things you should know when you start out.
Choose your tax year
Your business is legally required to pay taxes and keep accounting records on a consistent yearly schedule called a tax year.
Determine your state tax obligationsU.S. Small Business Administration “Manage your business: Pay taxes.”
Your business might need to pay state and local taxes. Tax laws vary by location and business structure, so you’ll need to check with state and local governments to know your business’ tax obligations.
Determine your federal tax obligations
Your business structure determines what federal taxes you must pay and how you pay them. Some of the taxes require payment throughout the year, so it’s important to know your tax obligations before the end of your tax year.
The expenditures of starting and running a small business might be substantial.
Whether you work alone or with others, the tax system is designed to assist balance the potentially high costs of self-employment during tax season. By reducing startup and operational costs, you can reduce your tax liability in relation to your business income.
You can use effective small business tax software to help you. Working with a tax professional as a new business owner can also help you avoid common problems like underreporting business costs or overlooking a crucial tax form that can save you money.
Silicon Harbor Business Services is based in Mount Pleasant, SC. We provide solid, practical advice to small business owners and select individuals. We work with Quickbooks Online, Quickbooks Desktop and Quickbooks Enterprise.
For a complete list of our services, please click here. Reach out to our team of Business Consultants at Silicon Harbor Business Services in Mount Pleasant, SC if you have any questions about online bookkeeping or business consultancy. We’d love to hear from you!