They say there’s nothing permanent in the world than death and taxes. But only one of them can strike terror in the hearts of business owners everywhere. If you’re just starting out, here are a few things you should know to help you get the best tax benefits for your business:
- Employees vs subcontractors? Bplans says hiring employees can net you a whopping tax bill if you don’t pay your employees Social Security as well as Medicare taxes. Going for freelancers, though, provide you plenty of benefits since you won’t have to provide Social Security and medical coverage.
- Get two accounts. You aren’t sure if your business will take off the ground or not. But before you make a move, take steps to ensure you’ve got separate bank accounts for your personal use and business use. Treat your bank statements as sacrosanct. You shouldn’t ever mix the two together. Otherwise, you could develop the bad habit of dipping into your business funds for personal use.
- Organize your files. Put everything pertinent to your finances in one place. Make sure you separate them into four categories: personal, income, deductions and business information for an easier time at filing your tax returns later on.
- Put your payroll in order. Make sure your payments are all in order. The IRS doesn’t take kindly to businesses that don’t pay their dues.
- Hire a tax pro. If this is your first time and you haven’t got the skill or training to manage the books, then look into hiring a professional for tax help right away. The more you act without financial or tax advice, the more likely you’ll end up making a mistake. Don’t risk your funds or business that way. Consult a pro or even better, hire one. You’ll have someone to tell you what steps to take, what to watch out for and help you keep your books in order. No need to feel like the IRS is watching you behind your back.
- Book early, says the Entrepreneur. Don’t hire a tax pro during the tax filing or prep season. They’re all deathly busy. Hire one a few weeks early to ensure you get a slot. Otherwise, you could end up handling the matter on your own.
Make the most out of your tax benefits. That’s one way to help keep costs down while you try to get your business off the ground.
A Kaplan CPA offers accounting and tax help. If you would like to know more about how we can help you get with your tax situation, call us for a FREE Tax Consultation at (718)577-2582. You can also connect with them on Facebook for more updates.
