Tax Time: How Do I File Taxes for My Small Business?
It’s that time of year again for any small business owner: tax season. And like any business owner, you’re likely asking, “How do I file taxes this year?” If you received any financial support, grants, loans, etc., you’re probably more confused than ever.
With the right tax expert and this brief guide, you’ll learn everything you need to know for getting those taxes filed. Simplify your tax season with these tips.
Get Your Records Together
If you’re asking, “How much do I have to make to file taxes?” you’re likely at a point where you need to file. Reporting for income tax varies by state. The minimum amount of annual gross income that requires filing a tax return is $12,200.
Marital status and age also determine how much you pay for taxes, but these should be separate from your business. If you’re not great at record-keeping, make sure you give yourself (and your CPA) plenty of time to gather everything.
Even if you are detail-oriented, entering earnings and expenses into a reporting database like Quickbooks takes a lot of time. You may not have the time for this so that a qualified tax preparer could help you.
Finding and Filing the Right Form(s)
You might already be wondering, “How do I file a tax extension?” If so, you might be unsure about what IRS forms to complete. Even if you know how to classify your business as a sole proprietor, LLC, S, or C-corp, you need the right form. Using guided software might put you on the right track, but it takes more time than you have.
Your best bet for determining whether you’re filling out Schedule C or Form 1120 is with a certified public accountant. You need someone trustworthy like John Warekois CPA. An experienced professional like John will have your business taxes filed on time, with the right form, too.
If you’re worried about filing on time, the deadline depends on your business category. Working with a tax professional ensures you meet deadlines. Or it means you can plan and file an extension.
Paying Estimated Tax Totals
Once you work with a pro, you won’t wonder, “How do I file my taxes?” Instead, you might wonder, “How do I know if my tax return was filed?” If so, your CPA can help.
After taxes have been filed, even if you receive any refunds, you’ll have estimated taxes to pay, too. The IRS often generates this amount because self-employed business owners don’t have an income tax withheld automatically.
Estimated taxes are due quarterly, with dates determined by your state filing deadlines. Federal filing deadlines remain consistent, though. Your tax preparer can help you stay on track with these dates, making sure you pay what you owe when it’s due.
No More Wondering, “How Do I File Taxes?”
You no longer have to wonder, “How do I file taxes?” Instead, you can focus on gathering all your business records. If you need more insights for your small business operations, check out the rest of our quality content.