Smart Tax Tips for Small Business Owners
When it comes to running a small business, there are a million things to think about every day. Before you know it, deadlines are upon you and the paperwork has piled up. Sound familiar? Don’t let the daily operations get swept under the rug simply because you’re immersed in big picture plans.
As we approach tax season, it’s imperative to stay on top of dates and deadlines.
Restaurant owner from St. Louis, Sarah Haselkorn, advises small business owners to stay organized and start early. She says it’s important to have your employee’s information on file (even if they no longer work for you) to issue W-2s.
Additionally, experts recommend small business owners file an extension – just to be on the safe side. Everyone is eligible to file an extension so long as it’s filed in a timely manner. This allows you some time to breathe if you feel like you won’t be able to prepare everything by the official due date.
Still have questions about the process or nervous that the process might have changed in accordance with updated policies? The U.S. Small Business Administration provides detailed instructions for filing taxes. Read the full piece on business structure and tax implications here.
You can determine your federal tax obligations based on the type of small business you manage by consulting their manual. If you opt to handle the process yourself rather than turning to an accounting firm, the SBA site can walk you through the steps to file accurately.
CPA David Cox at eFile recommends all small business owners do their research months before the start of tax season. David says,
”We recommend small business owners start there research and be extremely prepared. If you are late, you can always file an extension, but it is better to be pro-active so you aren't stressed out near the deadline.”
Also, he points out that just because a colleague or peer is working to file by a certain deadline, doesn’t mean the process will be identical for you. In fact, some small business owners will need to file a 1040 while owners that have an Inc. or a Corp. have a different deadline entirely.
Financial responsibilities are critical to running a successful business. A mistake can come back to haunt you and ruin everything you’ve worked so hard to achieve. In the wake of some significant federal shifts in terms of small business support and new laws coming into play annually, it’s wise to stay in the know about your finances.
Take this advice from small business owners and financial professionals to avoid disaster down the line.
