As a small business owner, nothing can be more important than your business. You’ve worked hard to start your business from the ground up and now it’s time to file your small business taxes for the first time. It can seem like a foreign world when attempting to navigate the complicated tax laws, especially for small business owners, but with a little help, you’ll be on your way to filing your small business taxes successfully. Here’s what you need to know about filing small business taxes for the first time…
Before You File
Getting organized is crucial to filing your small business taxes, and we can’t stress enough about keeping all receipts and maintaining a log of all transactions throughout the year to prepare you for tax season. If you don’t have a filing system in place, it’s a good idea to adopt one that works for you. Gather all of your records and receipts, so that you can effectively decipher between your earnings and expenses. Crafting a spreadsheet including this vital information is a good idea, so that you have all of these numbers in a nice, neat place to refer back to when needed. Having this summary of earnings and expenses can help you calculate your income and deductions accurately.
Filing Your Small Business Taxes
Now it’s time to get to it. It’s important to ensure that you’re filing the right tax form, based on your business type. Common business structures include:
Limited liability company
You’ve already had to decide which type of structure you wanted your business to be when you set it up, so it’s now time to choose the corresponding tax form. It’s important to note that you must report all business income and all expenses on your small business tax return. Failure to do this may result in repercussions with the IRS.
Know When to Seek Help
Your first time filing can be a daunting task. After all, you may have no idea what to expect and if all of your organization and hard work throughout the year has prepared you for this moment. That’s why seeking the assistance of a trained tax expert can be an extremely good idea, especially if this is your first time filing. Knowing that you’ve got someone in your corner, who knows the complex tax laws is a good feeling to have during tax season. Going at it alone, especially when you’ve never filed small business taxes before, can result in mistakes and in some cases, overpaying on your tax burden, so it can be in your best interest to seek help.
Your Small Business Taxes
Small business owners have both a rewarding and a stressful job at the same time. Your business may have resulted from a leap of faith and now it’s time to see how your first year in business went, learning how to improve for the future. Keep these helpful tips in mind when getting ready to file your small business taxes this year and every year. Stay organized, keep track of everything and employ the help of a professional if you’re unsure. Get the most out of your small business and watch it grow and thrive for years to come.
The tax experts at Bodine Perry are ready to help your small business this tax season! Call (855) 851-8318 or visit www.bodineperry.com to learn more.