Getting Your New Business’s Taxes Right The First Time

Jul 1 • Business • 484 Views • Comments Off on Getting Your New Business’s Taxes Right The First Time

Getting Your New Business’s Taxes Right the First TimeWhen starting a new business, it’s important that you have all your ducks in a row when it comes to business taxes. Underpaying taxes owed, missing quarterly deadlines, and failing to report certain items can have detrimental financial and legal ramifications for your startup. Consult with the following resources before your business opens its doors to make sure you get your taxes right the first time, and every time.

Check out the IRS Website

The IRS is the alpha and omega of US tax law. Visit its Small Business Tax Center to learn:

  • How the structure of your business – sole proprietorship, partnership, corporation, S corporation, or LLC – affects your tax status. According to the IRS, “Nearly every state levies a business or corporate income tax. Like federal taxes, your state tax requirement depends on the legal structure of your business. For example, if your business is an LLC, the LLC is taxed separately from the owners of the business, while sole proprietors report their personal and business income taxes using the same form used to report their business taxes.”
  • The types of federal taxes that may be levied against your business: income tax, self-employment tax, taxes for employers, and excise taxes.

It is important that you understand how your business will be responsible for the taxes it owes to the federal, state, and local governments. These considerations may even affect how you decide to structure your business – so start your research early.

Visit the US Small Business Administration

The Small Business Administration is a government entity designed to help small businesses grow and succeed in the US. You can find a wealth of information on their website regarding your new business’s structure and tax implications.

  • While the SBA’s website is highly useful, you can also receive face-to-face assistance at one of the SBA’s District Offices, SCORE Chapters, Small Biz Development Centers or Women’s Biz Center in your area.

Contact a Local Tax Attorney

Figuring out your business’s tax situation and burden on your own – even with the help of online government resources – can be daunting. Even moreso should your business need to take into account special considerations, such as foreign imports and exports, workers operating on an international visa, or other particulars not addressed well online. In this event, it may be prudent to contact a San Diego tax attorney to help walk you through the particulars of your business’s tax responsibilities.

  • Forming a relationship with a tax attorney early in your business’s development can help you prevent future problems down the road. Furthermore, they can help you deal with any issues that do crop up, as well as assist with filing tax returns and performing other tasks. The cost of having a tax attorney on retainer can be far less than the penalties your business will owe should an audit find you responsible for back taxes or financial penalties.

Getting your new business ready to launch is a complex endeavor with a lot of details to keep straight. By doing your research on government-run websites, you can ensure that all the information you find is up-to-date and correct. A tax attorney can provide further assurance that your business tax situation will go right every quarter.

Image source: freedigitalphotos.net

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