Understanding your tax obligation is one key to business success. When you start a business, you need to know about income taxes, payroll taxes and much more. A+ Tax Service is a stop you can't afford to skip when starting a business. Call us today at (325)949-1040 to schedule a consultation!!
Here are five IRS tax tips that can help you get your business off to a good start:
Business Structure- An early choice you need to make is to decide on the type of structure for your business. The most common types are sole proprietor, partnership and corporation. The type of business you choose will determine which tax forms you file. Let us help you decide which is most beneficial to you and your company.
Business Taxes- There are four general types of business taxes. They are income tax, self-employment tax, employment tax and excise tax. In most cases, the types of tax your business pays depends on the type of business structure you set up. You may need to make estimated tax payments. Don't go it alone, we can make sure you are set up right and stay on top of any taxes owed.
Employer Identification Number (EIN)- You may need to get an EIN for federal tax purposes. We can help you both determine if it is needed for your line of work, and help you obtain your EIN.
Accounting Method- An accounting method is a set of rules that you use to determine when to report income and expenses. You must use a consistent method. The two that are most common are the cash and accrual methods. Under the cash method, you normally report income and deduct expenses in the year that you receive or pay them. Under the accrual method, you generally report income and deduct expenses in the year that you earn or incur them. This is true even if you get the income or pay the expense in a later year. Good thing we have a great bookkeeping service to help you know which to use!
Employee Health Care- The Small Business Health Care Tax Credit helps small businesses and tax-exempt organizations pay for health care coverage they offer their employees. You’re eligible for the credit if you have fewer than 25 employees who work full-time, or a combination of full-time and part-time. The maximum credit is 50 percent of premiums paid for small business employers and 35 percent of premiums paid for small tax-exempt employers, such as charities. For more information on your health care responsibilities as an employer, see the Affordable Care Act for Employers page on IRS.gov.
No matter what kind of business you are thinking about starting, no matter how big or small, a good business consultation is necessary to avoid any surprises...especially when it comes to surprises from the tax man!!
We are open year-round and look forward to helping everyone be successful.
Call the office at (325)949-1040, or come by & visit us at 2304 College Hills Blvd!!