Tax Tips for Small Businesses
Tax Tips for
Small Business Owners / Tax filers: http://www.tax-defi
nition.org/tax-tips
Don't the complexities involved in doing your taxes bug you,
specially, if you own a small business? Following and getting
familiarized with the guidelines laid down by the IRS for small
businesses is very important.
In case you hire other employees for your business, you should
attach two forms on your, as well as your employee's, behalf.
The W-4 form gives the details of the withholding allowance and
the filing status of your employee to the IRS. W-4 form is
better known as the Employee's Withholding Allowance
Certificate.
The other important document to be filled up is the Form I-9
that gives the proof of eligibility of every employee to work in
the United States. It's also known as the Immigration and
Naturalization Service (INS) certification. In case you've any
confusions or queries regarding filling up these forms, you can
directly call up the INS.
Busines
s definition : http://
www.tax-definition.org/Define-Business.html
There are a few things that can be done to make sure that the
process of filing your taxes is smooth and easy while taking
into consideration that you are a small business owner:
a. There can be nothing like getting familiarized with the
taxing procedures for small businesses. You can directly contact
the IRS either by calling them, or by mailing them online.
You'll then be able to get all the information that you need on
the deductions that you need to make, the cost of depreciation
on your machinery, and queries on how to fill up the different
forms.
b. Logging on to the IRS Small Business website might answer all
your questions. The IRS has framed a special program known as
STEP, or Small Business Tax Education that you can go through to
understand the overall tax structure.
c. There are many state governments that offer special tax
deduction packages to many small business owners. You can check
from the local authorities about these incentives and fill up
your tax forms.
d. Be careful about classifying your employees in tax forms.
Sometimes the IRS mixes up the actual employees with the
contractors. Therefore, you should be clear about the process of
classification.
e. Another tax tip for small businesses is that you should be
aware of the sales tax that is applicable on your kind of
business. The taxing authorities need to check your permit that
enables them to collect the sales tax. Not having a permit, or
authorization is considered to be a criminal offence, so you
should get registered as soon as possible.
f. In order to file your taxes, you should be prepared with all
your documents and paperwork. The audit, stubs, records,
licenses, permits, receipts, and all the other documents should
be placed in order. Organizing all your documentation is also
important.
Other than following the above mentioned tax tips for small
businesses; you also need to maintain an order in your business.
Maintaining your accounts and other documentation, keeping a
track of the filings by your employees, and accessing your tax
beforehand with the help of your accountant, will save time and
money.
Tax Tips for
Small Business Owners / Tax filers: http://www.tax-defi
nition.org/tax-tips