In 2021, the federal government collected more than $4 trillion in tax revenue. Every year, it’s essential to find tax tips to save you money when filing business taxes. Don’t pay more than you must!
As a new business owner, you should familiarize yourself with tax tips, including hiring a professional tax preparer, business classification, and deductions. Filing your taxes is not a daunting task.
If you are a new business owner, here are 5 tax tips you should know about when filing business taxes.
1. Tax Tips Include Hiring a Professional Tax Preparer
Hire an expert tax preparer to do the job right. You want a tax professional that knows the rules and has the experience of filing taxes.
A tax expert also gives you peace of mind and takes the worry from a complicated process.
2. Classifying Your Business Properly
Small business owner taxes can get confusing if you don’t classify your business the right way at tax time. The federal government gives you several options, including s-corporation, limited liability corporation, sole proprietorship, and partnership.
Each classification comes with its plusses and minuses. Each determines how much in taxes you’ll pay. It’s all about your business structure as a new business owner.
You can avoid some small business owner taxes should you find the correct deductions. You deduct several things from your new business taxes, such as meals, transportation, computer software, and ink pens. It’s essential to check the Section 179 deduction.
When it comes to taxes, just about anyone will tell you to save your receipts! You’ll need to prove that you purchased each of these times for your new business taxes.
4. Tax Breaks
You can find a complete list of tax breaks on the IRS website. There are plenty of tax breaks to take advantage of, such as women and minority-owned businesses. Veterans and military personnel can also get a tax break.
Depending on where you operate your business, you may qualify for a tax break. Governments often create enterprise zones in communities to encourage economic growth. You might save on taxes for decades if you invest in one of these areas.
5. Tax Software
There are plenty of tax software programs on the market to help save you money and keep you organized. You can still use an accountant to help you file taxes and use computerized software.
Software programs designed for taxes walk you through each step when paying taxes and organizing your paperwork. They are user-friendly and inexpensive.
Five Tax Tips for New Business Owners
As a new small business owner, there are plenty of tax tips you can take advantage of at tax time. Tax tips include hiring a good accounting, classifying your business, deductions, tax breaks, and using tax software.
Talk to a professional about the tax tips you should know about during tax time. Don’t pay any more money to the federal government than you have to!
Contact us today to get you set up with a service, so tax time isn’t a worry.