Filing taxes as a small business owner can be challenging but it’s a familiar pain. As we speak, there are over 32.5 million small businesses in the US, all of which know the struggles of small business taxes.
Keeping track of your business finances and preparing for small business taxes can save you a fortune on your company taxes. Here’s what you need to know to prepare yourself and your business finances!
- Don’t Forget Financial Records
You should have a clear record of all of your business expenses and revenue. There are many forms this could take, but you will need this for an accurate filing.
For example, you may have received 1099 forms or you may have a PayPal, Venmo, or payment processing account that saves these records for you. These will all need to be accounted for prior to filing.
After that, you’ll need a detailed record of your business expenses and potential deductions. This could be in the form of receipts, bank/credit card statements, or a detailed list of expenses. Regardless, some often overlooked examples include:
- Business mileage
- Insurance premiums
- Software costs
- Employee salaries and benefits
- Charitable donations
- Moving expenses
The list goes on. If you spent money on something solely for your business, then it should be deducted from your tax bill.
- Find the Right Forms
1099-Misc, 1099K, or 1120s might be right for your business, depending on its structure of it. If you’re a freelancer or if you’ve provided more than $600 worth of services to a single organization during the fiscal year, then you may receive a 1099 form for your compensation.
For most sole proprietorships, you’ll file a 1040 tax form as a small business owner. However, there are plenty of exceptions to this, especially depending on your industry.
On the other hand, an LLC may need to file an 1120 or 1120S form. Just make sure you know which form is right for your business structure. Nonprofits, corporations, and other types of organizations will have to file different forms as well.
- Have Professional Help
If this is your first time filing small business taxes or if you’re worried about a large tax bill this year, then it can really pay off to have professional help. In that case, talk to Silver Tax Group to get you the help you need, maximize your deductions, and give you peace of mind in the event of an audit!
Also, you won’t have to worry about making any costly mistakes on your taxes such as filing the wrong forms, accidentally filing inaccurate information, or overpaying.
File Your Small Business Taxes Today
Now that you know how to prepare for small business taxes this year, set yourself up for success and avoid overpaying. With the right preparation and the right help, doing taxes will be a piece of cake.
Get started today and stay up to date with our latest business news for more information and financial advice!