Understanding the complexities of taxes and finances is a complicated process for business owners, especially if you are not an expert. However, filing taxes without any mistakes and delays is vital to avoid penalties and added expenses. Therefore, you need a small business accountant in Sarasota who can file taxes on your behalf. If you are thinking about how you can file taxes for a small business, we have covered it in five major steps. Let’s dive in!
Steps To File Small Business Taxes
1. Gather all necessary documents
The first and most important step of filing business taxes is collecting all important business documents to understand tax liabilities. These documents include tax records and bank account statements. As a business owner, some common taxes paid are sales tax, property tax, and others.
2. Identify all required forms
To file the taxes, you will need different types of IRS forms that can help you file taxes based on your business structure. For example:
- If you own a sole proprietorship, choose schedule C IRS file form,
- If you own a partnership business, choose form 1065
- If you are a corporation, corporate tax return form 1120.
3. Fill out the tax forms
After determining different forms, it’s time to fill out the tax forms for small businesses. You will need to provide accurate information at every step to avoid future delays. Consider hiring a CA or a CPA who can help you file taxes or fill out the form on your behalf.
4. Know tax deadlines
To avoid any penalties, remember the tax deadlines. If you have a CA onboard, they ensure the task is complete before the deadline. You can prepare a checklist and set reminders never to miss a deadline.
5. File taxes
The most crucial step of the process is filing taxes. In this step, your CA will complete all necessary forms on your behalf and file taxes. If you are late, file an extension before the deadline to avoid penalties.
Wrapping Up
When you run a small business, you micromanage every task to ensure everything is on point. Taxes are an important part of a business; thus, you cannot afford to take risks as it can lead to penalties and added expense that impacts the company’s profit. Thus, hire an expert CA or CPA who can guide you in filing business taxes.