Many people often dream of starting their own small business because they want to become their own boss. Even though this sounds like a wonderful idea, one of the most complicated things about it involves filing taxes, which is something that can make a lot of people nervous.
Here are three useful tips for filing taxes for any small business.
Ask for help
Never be afraid to ask for help involving something such as filing taxes for a small business. There are different rules involving filing small business taxes, especially since different forms are required in bigger amounts, not to mention that the tax system itself isn't easy whatsoever. Perhaps the best and easiest solution to this problem is to consider hiring an accountant to assist you with this task, as this will help you to avoid any and all costly mistakes.
Take advantage of deductions
Always take advantage of any and all deductions that may be available to you. This will not only help with lowering any tax penalties on your end, but it will also help to put more money back into your pocket as well. Some of the most common deductible business expenses include banking fees, advertising costs, software purchases, and business asset depreciation.
Use the correct forms
When filing taxes, it's important to ensure that you always use the correct forms. The forms that you use will depend on the structure of your business. For instance, a sole proprietorship will require you to fill out Schedule SE for self-employment taxes and Schedule C for business profit and loss; single-member LLC requires filling out Schedule C; corporation requires filling out Form 1120; s-corporation requires filling out Form 1120-S; partnership/multi-member LLC requires filling our Form 1065for the business, while each partner and member will need a completed Schedule K-1.
Taxes for Your Small Business Workshop
DATE & TIME: November 12, 2019, 10:00am CST
Address: SCORE Office
5524 Bee Cave Road
Westland Office Park, Building M
Austin, TX, 78746
Lisa will address the important aspects of business taxes. You need to understand how to know how to plan for what you owe and by when is it due.