Easy Steps For Filing and Paying Taxes
Businesses cannot evade tax and as responsible citizens it is our duty to pay taxes. Irrespective of your business taxes are levied either on the individual or the business entity. Taxes can be divided into federal and state taxes. Being transparent is the only way to make your tax filing process simple and quick. It is the annual responsibility of any entrepreneur to file taxes. Small businesses have simple tax filing procedures when compared to big corporations. There is professional help available from tax consultants that can make the process simple.
How to select an accountant for your business?
There are enough hurdles to cross while running a business and it is best to leave the tax filing part to the experts. Hiring able and experienced accountants for your business can give you relief from running behind numbers. Preparing tax statements could be stressful and time consuming if you do not have prior experience. If you want to ensure your tax returns are accurate it is best left to professionals. They would show you the ways and means to pay as little as possible without having to face tax violations.
Finding a tax accountant is simple, just Google out your requirement. There are specialized tax consultants available that can reduce your burden of tax filing. Shop wisely; referrals are the easiest way to ensure you are in safe hands. Do not go behind those that promise big refunds. The service charges depend on the size of your business and the number of tax forms that need to be filed. Enrolled agents have special skills in filing complex tax returns, you can avail their help if needed. Apart from this there are Certified Public Accountants who can handle specialized tax issues.
What are Federal Tax and State Tax Obligations?
Federal taxes can be broken into four types, income tax, self employment tax, taxes for employers and excise taxes. States have their own tax laws. Income tax and corporate tax are levied by the state. Again how much tax you have to pay depends on the business structure. Employees are also liable to pay taxes to the state. This falls under the state workers’ compensation insurance and unemployment insurance taxes. Each region has their own tax laws and it is important to consult appropriate authorities before filing tax returns.
How to file taxes for your business?
Professional tax consultants and online help are available for businesses that are looking to file taxes. The first step towards the tax filing process includes acquiring Employment Identification Number from the Internal Revenue Service. Next step involves keeping your records in place this includes sales and expenses for the financial year. Install an efficient accounting system that can record your income and expenses. All new employees have to sign Form W-4, this is essential to file employment taxes. Once the accounts are prepared, the filing process starts, all forms can be downloaded from IRS website. Filing can be done online irrespective of the size of the business.
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