As a successful business owner taxes are part of the game. It’s always better to stay on top of it than chance late filing fees, penalties, and back taxes.
Avoid last minute costly surprises by staying prepared during the year for these major taxes:
Payroll tax: If you have employees there are specific steps required to properly prepare and file payroll tax returns. You’ll need to have an FEIN (Federal Employer Identification Number) and you’ll also need a State Identification number for each state where you conduct business. You will deposit payroll taxes either semiweekly, monthly, or quarterly.
Income tax: Income taxes are paid based on your business structure. Based on that structure you may need to pay taxes as business income or personal income. Find out what structure is best for your business and the best way to pay by consulting with your CPA.
Sales tax: If you sell tangible products, you’ll need to collect sales tax from each sale. Sales taxes vary by state, county and city. This gets tricky if your company sells products in multiple locations or online.
The bottom line with small-business tax prep is to be diligent at all times. Talk to a tax pro to get help collecting sales tax correctly.
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