If you’re a small business, the last thing you want to be doing is wasting time figuring out your tax returns. Learn more about small business tax filing right here, and whether hiring a tax return company might be the right move for you.
You’ve built your business from the ground up, and you love what you do every day. You want to keep focusing on growing your business instead of things like taxes.
We know that small business tax filing is one of the least favorite things that business owners have to do. Besides it being a time consuming and tedious task, you have to worry about doing it right.
Unless you have accounting knowledge, small business taxes can be a pain. If you’re here, it means that you’re a small business owner who wants to know how to file their business taxes efficiently.
Don’t know where to start? We’ve you covered.
Let’s get into it!
Small Business Tax Filing: Where to start?
Before going through the steps to file your small business taxes more efficiently, we’ll go over the basics that will determine your tax structure. The starting point for your business taxes is the type of small business you’re running.
Is your business a limited liability company (LLC), partnership, or sole proprietorship? The type of business structure will determine the way you’ll file your taxes.
For example, if you’re running a sole proprietorship, you’ll file your taxes on your personal taxes.
Small business taxes won’t be complicated if you set up your own system. Here are some steps you should follow to file your business taxes efficiently:
1. Set Up Your Own Tax Deductions and Credits System
In any business, keeping in mind tax deductions and credits will be crucial to filing your business taxes. If this is the first time you’ hear about deductions, you’ve probably lost a ton of money you could have deducted from your taxes.
Now you shouldn’t go overboard with them because deducting the wrong expenses can get you in trouble with the IRS. Tax credits are based on all the financial transactions from the year and lower the taxes you pay.
Establish your own system to keep track of tax deductions and credits. If you aren’t sure how to do it, consult a tax professional. They can point you in the right direction.
2. Get Organized
Any tax professional will tell you that this step is key for efficient tax filing. That’s why you should get rid of the receipt shoe box, drawer, console, and any place where you stuff your receipts.
One way you could do this is by establishing your own system for organizing your receipts and expenses. Consider keeping electronic copies of your receipts.
3. Familiarize Yourself with Your Deadlines and Forms
To be efficient with your taxes, you must be aware of what forms and deadlines you must follow in accordance with the structure of the business you’re running.
Ideally, consult a tax specialist to make sure you’re filing your taxes the right way.
4. Filing Your Taxes
This step might be the trickiest part of filing your small business taxes.
You could do this yourself, use an Online Tax Return service, or ask your accountant to do it for you.
Wrapping It Up
Small business tax filing shouldn’t be complicated with the right system in place.
In case you have any questions or need any guidance, consider getting advice from a tax professional. If you follow this guide and stick to the basics, filing your small business taxes will be one thing less to worry about.
Are you filing the taxes for your small business? Want to know how to maximize your deductions?
Check our blog post to learn more!