10 Things New Business Owners Need to Know About Business Taxes
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Business Taxes for New Business Owners
Taxes. Compared to death, taxes are a joy to do, but there aren’t many other things that compare favorably. Too often, new businesses desire small business tax tips to keep fear at bay… because some entrepreneurs consider taxes even more dreadful than even the panic associated with death. If you feel this way, look for a tax accountant as skilled as Miller & Company in Manhattan for assistance.
Successful tax planning strategies allow you to keep more of your money by reducing your tax burden on everything you do, year-round. Miller & Company LLP, NY Certified Public Accountants, a best rated NYC CPA firm.
Paying federal and state taxes on a new business doesn’t have to slay you. Put your fear to rest (in peace) and rely on a professional accountant who takes a personal approach to prepare your taxes. More than 85 percent of new business owners nationally count on professionals for tax tips for small business and professional tax services.
Forewarned and Armed
It’s not like you’re going into battle, although you may feel like you are. When you deal with the Internal Revenue Service audit, you need a professional on your side looking after your best interests — and wealth. Small business tax tips help so much when you’re beginning your business. The benefits continue each subsequent year, too, with small business tax advice from your personal financial advisor.
An accountant who provides tax tips for small business — along with bookkeeping and tax services — prepares you for the annual ritual of that April 15th deadline. Your personal accountant arms you with small business tax tips — information that every new business owner needs to know, such as these 10 tips:
1. Choose Carefully.
The type of business structure you choose affects your tax burden. A sole proprietor, for example, pays taxes on his personal 1040, while partners use the company simply as a pass-through for income and deductions. When choosing your legal entity, consider which option best serves your needs in every area.
2. Take Note.
Keep good records. Every penny spent on your business likely means a deduction come tax time. Let your professional accountant weed through the allowable deductions; it’s your job to take careful notes all year long.
3. Hire Wisely.
The IRS is a stickler about your hiring practices. Make sure you know the difference between independent contractors and employees. One type gets a 1099 and another receives a W2. Your tax obligations vary greatly between the two.
4. Do Your Homework.
Technology allows entrepreneurs to eschew pricey office space in favor of a home office. To get the deductions you deserve for the space, however, you must devote the room to your business. You can’t work from your dining room table and call it an office. Get small business tax tips from a professional accountant to set up your home office so you can deduct as much as legally possible.
5. Read the Fine Print.
While you trust your accountant to handle your federal and state obligations, your tax returns tell a story that you should review together. Allow an experienced accountant to use your tax return to provide you with specific small business tax advice that will make next year’s return even better.
6. Start Your Engines.
Tax tips for small business include write-offs for a wide range of start-up costs. Don’t wait until you’re up and running; market research, accountant and attorney fees may be deductible in your first year of business.
7. Get Smart.
Small business tax advice always requires educating yourself, and you can deduct most of your expenses. As your business grows, keep learning through business courses, certification classes and industry improvement workshops. These business expenses reduce your tax burden, too.
8. Promote Yourself.
The costs associated with doing business may be tax-deductible. Build a website, hire someone to write your copy, get a social media pro to boost your posts and send out newsletters. It’s all part of your advertising campaigns in the 21st century — and they may be deductible.
9. Estimate Accurately.
Small business owners don’t just pay taxes in April; you need to pay them four times a year. As part of the small business tax tips you receive, your accountant can tell you that quarterly taxes aren’t required your first year, but if you don’t send the IRS something every quarter thereafter, you may face penalties.
10. Start Up Right.
It’s so much easier to track, organize and prepare for small business tax tips when you start from the beginning. Don’t try to shoehorn tax practices into new processes when you start growing. Take advantage of an experienced accountant who can provide small business tax advice. Set up your bookkeeping so that taxes don’t take up your valuable time. Focus on what you do best and let the pros deal with the IRS — it’s smart and it’s deductible!
Do you have questions about Small Business Tax Tips in NYC and Long Island? Would you like to receive a personal Small Business Tax Tips consultation customized to your specific needs? To schedule an appointment with a nationally recognized leading CPA in Queens and Manhattan, Paul Miller of Miller & Company LLP, please contact our NYC accounting firm for a FREE consultation.