Are you new to the world of small business? There are many things you need to make sure you are on top of when it comes to being a business owner. SmartTax, LLC, is here to provide you with the best tips when it comes to filing your tax return as a business owner. We consider ourselves on the best tax places near me. We also specialize in bookkeeping services. 

 

Tips for Your First Small Business Taxes

Here are the tips we give small business owners on how to handle their tax matters, especially those who are filing small business taxes for the first time:

  • Understand the Difference between Paying and Filing
    • Filing taxes simply means filling out the correct form(s) and sending them, either by mail or electronically, by the required due date.
    • Paying taxes means paying the taxes when required by the taxing agency in question, and this does not always coincide with the required filing date of the return.
  • Understand How the Business Form You Have Chosen Affects Your Filing Requirements
    • There are five entities recognized by the Internal Revenue Service (IRS) for tax purposes, and each one has their own unique operating and tax structures.
      • C Corporation – Form 1120
      • S Corporation – Form 1120S
      • Partnership – Form 1065
      • Sole Proprietorship – Schedule C attached to Form 1040
      • Limited Liability Company (LLC) – Depends on the tax classification chosen by the entity
  • Understand What Taxes are Required
    • In general, a business could be subject to any or all of the following:
      • Income Taxes
      • Payroll Taxes – Forms 941, 940, and various state returns
      • Sales Taxes
  • Know the Filing Dates
    • The filing date for a tax return depends upon the type of tax and, in some cases, the type of entity as we have discussed above. In general, a small business files its income tax returns once a year. 
  • Understand the Consequences of not Filing a Return or Filing Late
    • Failure to file a tax return can result in a penalty of 5% of the tax not paid for each month or part of a month that the return is late up to a maximum of 25%. If fraud is involved, the penalty is more severe.
    • Failure to pay the tax (or paying late) can result in a penalty of 0.5% of the unpaid taxes for each month or part of a month that the tax remains unpaid up to a maximum of 25%. Again, fraud is more severe.
  • Understand How to Fill Out the Returns to be Filed
    • As a business owner, ask yourself if you are trained and understand the intricacies of all tax forms required.
  • Consider Hiring a Professional
    • Our team of professionals is here to assist you every step of the way! 

 

Take Advantage of Our Bookkeeping Service

We provide tax preparation for individuals and small businesses. We pride ourselves in preparing your return quickly and accurately. Customer satisfaction is our number one priority. At SmarTax, you’ll get professional, quality service, at a reasonable price.

 

Call Us For Bookkeeping Services

When it comes to “tax preparation near me,” we are the experts to trust. It is very important to know these important factors when it comes to taxes. It is all part of tax preparation. We are here to help, especially when it comes to an understanding of small business accounting. 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 being one of the “best tax places near me”!