Planning your taxes is a year-round activity, but it becomes particularly important at the end of the year. As you prepare to file your small business tax return, here are some tips for maximizing your deductions and minimizing your tax liability:
Filing Your Business Tax Return
The importance of filing your business tax return
The first step in tax planning is to file your business tax return on time. If you don’t, the government may impose penalties and interest charges. This can add up to thousands of dollars over time, depending on how late you are in filing your return. In addition, if you don’t file a complete and accurate return (or even if you do), there could be additional costs associated with having to amend or correct it later on down the line when it’s too late for them not to catch any mistakes!
Keep records for future reference
Establishing a Separate Business or Personal Checking Account
One of the best ways to protect yourself and your business is to establish separate business and personal checking accounts. This can be done by opening a new account at your bank or credit union, or by simply using one of your existing accounts for business purposes only. If you do not already have multiple bank accounts, it’s important to establish one as soon as possible so that you are not mixing funds between personal expenses and those related to running a company.
You should also make sure that all employees in … More >>>