IRS Definition

Business owners have a lot of tasks to handle in order to not only make a profit but also keep their business compliant with state and federal regulations. One of the more tedious tasks on the to-do list is paying annual taxes.

Taxes certainly aren’t fun, but they’re part of being a responsible business owner who gives the Internal Revenue Service (the IRS) its due. This guide walks through the essential need-to-know facts about this federal tax agency.

Knowing the IRS

The IRS is a federal agency that’s responsible for the enforcement of tax laws and collection of individual income taxes and employment taxes. The agency also handles corporate taxes and estate taxes, among others. 

Business owners need to be on top of what taxes they have to pay every year. Neglecting business taxes can cause legal issues that can put both an individual and the business they own in jeopardy. Entrepreneurs who want to learn more can check out this page on federal small business taxes. The IRS also has a page for business owners that’s a helpful resource. 

IRS Considerations for Business Owners

Each year, the IRS requires that business owners pay certain taxes. But the types of taxes the business owes will vary depending on its type. For example, LLCs have a pass-through taxation clause, while corporations don’t; they’re actually subject to double taxation. That said, every business structure has its pros and cons, both for taxes and general maintenance.

The IRS provides a page dedicated to taxes for specific business types, which can be a helpful resource.

Additional Considerations

Understandably, most business owners want to lower their annual tax burdens. Thankfully, the IRS does provide some tax deductions that business owners can take advantage of, including:

• Startup expenses
• Utilities
• Office supplies and tools (PCs, laptops, tablets, phones, etc.)
• Office furniture
• Insurance 
• Company vehicle expenses (gas, maintenance, etc.)
• Travel expenses
• Marketing expenses 

There are many more, so business owners would be prudent to do adequate research to find out what deductions apply to their business. Consulting with a tax professional can also be extremely helpful.

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ZenBusiness Can Help

Dealing with taxes can be tiring and, frankly, annoying. But it’s something every business owner has to do. ZenBuisness can help streamline other business tasks to help ensure compliance, and their business formation services help entrepreneurs start a business quickly and easily, freeing up time to handle tasks like taxes.