Being a business owner means being on top of everything essential to make your business run smoothly and remain compliant. One of these things is paying your annual taxes.
We know, paying taxes isn’t the funnest thing in the world, but it’s an important responsibility for every American. If you’re a first-time business owner and know nothing about the Internal Revenue Service (IRS), the agency that collects taxes, then let’s talk about it below.
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.
As a business owner, you should be on top of what taxes you’ll have to pay every year. Neglecting your business taxes can result in legal issues that could put you, as an individual, and your business in jeopardy.
Check out our page on small business taxes. The IRS also has a page for business owners.
Each year, the IRS requires that you pay certain taxes as a business owner. Which types of taxes and which forms you’ll need to fill out will depend on your business type. For example, like we mentioned above, an LLC has a pass-through taxation clause, which another business type, the corporation, specifically the C corporation, lacks. However, each business type has its benefits, so deciding which you’ll go with is your choice.
The IRS has a page dedicated to helping you based on your business type.
It’s important to familiarize yourself with how the IRS works and what you can do to ease your annual tax burdens. Here are some tax deductions that you can take advantage of as a business owner:
There are many more, so be sure to do your homework and find out which deductions apply to your business and industry come tax season.
Dealing with taxes can be tiring and, frankly, annoying. But it’s something we all have to do. We can help you run your business and ensure it’s compliant, so reach out to us to learn more about what we can do for you. We also offer many services to help you start and grow your business as well.
Disclaimer: The content on this page is for informational purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
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