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Prepare Your Small Business for Tax Time

Prepare Your Small Business for Tax Time

Accounting & BudgetingTaxesLegacy

This tax season, like every tax season, small business owners across the country will face innumerable questions and doubts about how to handle their business’s filing. Should I do them myself? What savings am I missing out on? How can I avoid being audited? These questions and tasks are so burdensome in fact, that 40% of small business owners say bookkeeping and taxes are the “worst part of owning a small business.” Is it any surprise that something as unclear, time-consuming and important as taxes creates such stress?

Whether you decide to outsource your tax tasks or perform them in-house, it’s important to arm yourself with the relevant knowledge to make sure your business not only complies but also saves time and money wherever possible. Here are a few resources to get you started:

Avoid Common Mistakes

Every year, accountants across the country and the IRS watch small business owners make the same mistakes again and again. Give yourself a leg up by avoiding these Common Small Business Tax Mistakes. From when to start preparing to whether or not you can deduct your dog’s vet bills and your family vacation, small business expert Rieva Lesonsky gives you a peak behind the scenes into what errors others are making.

Understand the Forms That Apply to Your Business

Time to get down to the nitty gritty of all those fun forms. Here’s what you need to know:

  • Do you employ contractors? Get to know the 1099-MISC Form for Small Business Owners and learn tips for safely and legally employing contractors.
  • Do you operate a sole proprietorship or single-member limited liability company (LLC)? Let the Guide to Completing the Schedule C walk you through each line with simple, straightforward instructions.
  • And if you’re filing a Schedule C, here’s another topic you’ll surely find interesting “How to Reduce your Self-Employment Tax Bill.”

Luckily we’re still ahead of the curve for tax season this year. Add another arrow to your quiver by joining the upcoming free live webinar: “Tax Strategies to Ensure You Pay #NotOneDollarMore” on February 10 at 1 p.m. Eastern. Register here.

Free knowledge sure sounds like a good deal this time of year. Speaking of free, team up with a SCORE mentor for free one-on-one guidance on being tax compliant year round, properly classifying employees or any other small business topic. Connect with a SCORE mentor today.

Profile: Ken Yancey

W. Kenneth Yancey, Jr., is the former CEO of the SCORE Association. During his tenure with SCORE, Mr. Yancey was responsible for developing SCORE into one of the most efficient, effective job creation and business formation engines in the nation. Prior to joining SCORE, Yancey served as Executive Director for the National Business Association. He is recognized as one of the nation's leading advocates for small business and represented SCORE nationally before the media, industry leaders, and in Congressional testimony. He speaks across the country on the topics of entrepreneurship and small business trends and serves as a member of the HuffPost Small Business Board of Directors.