Are you the proud owner of a small business? Have you thought about tax season that is just around the corner? It may seem far away, but now is a better time than ever to get prepared. Here at SmarTax, LLC, we specialize in small business taxes. Be sure to check out our payroll services located in Pembroke Pines.
What is Your Business Entity?
One of the first decisions that you will have to make is to choose the type of entity that you wish your business to operate as. Your choice plays a factor in your personal liability for the business’ activities and how taxes are imposed on the business and yourself as the owner. The most common forms of business are the
- Sole Proprietorship – Subject to income tax at the individual level, subject to the self-employment tax
- Partnership – Subject to income tax at the individual level, subject to the self-employment tax
- Corporation – Income earned by a corporation that has not elected to be an S corporation is taxed at the corporate level; with shareholders of the corporation being treated as employees subject to payroll taxes on their wages.
- S corporation- Subject to income tax at the individual level, shareholders treated as employees subject to payroll taxes
Each form of business has its own advantages and drawbacks; so consulting a tax professional as to which is best for you is always advisable.
Steps For Small Business Taxes
- Obtain EIN
- If you form a partnership or corporation or plan on having employees, you will be required to obtain an employer identification number (EIN) from the IRS.
- Keep good records
- One of the most important steps in starting a business is to establish a solid recordkeeping policy. Not only is good record keeping required in order to prove items of income and expense reported on your business’ tax return, but they also are crucial for monitoring the progress of your business.
- Deductible costs of starting your business.
- In addition to eligible start-up costs, corporations and partnerships are allowed to deduct up to $5,000 of organizational costs in their first year of activity. These include legal fees, filing fees, and other costs directly related to the formation of a partnership or corporation business entity.
Try Us Out!
Not only can SmarTax help with your personal and business tax preparation, but we provide superior bookkeeping services, which can help you stay on top of your finances throughout the year rather than leaving everything for the last minute. We offer full-service bookkeeping at an affordable price, making it accessible to everyone who could use extra help. Our services are great from small and medium-sized companies as well as anyone who is self-employed.
Call Us For Payroll Services
We are here to help, especially when it comes to an understanding of small business taxes. Be prepared next tax season. SmartTax, LLC in Pembroke Pines want to ensure you are ready and informed when it comes to your bookkeeping services. Call or visit our experts today for more information. We take pride in providing the best payroll services.