Basic Hints to Help New Small Businesses
Many people are starting their own business in this tough job market. People starting a small business are often challenged by their new tax filing requirements. It can be overwhelming to learn about federal tax responsibilities. I have outlilne a list of basic tips to avoid potential problems and I hope you find it helpful!
- Classify workers properly as employees or independent contractors as determined by law, not the choice of the worker or business owner.
- Deposit federal employment taxes, called trust fund taxes, according to the appropriate schedule.
- Start making estimated quarterly payments to cover your own income tax and Social Security self-employment tax liability.
- Keep good records to protect your personal and financial investment and to make tax filing easier.
- Consider a tax professional to help you with Schedule C.
- File and pay your taxes electronically. It’s fast, easy, and secure.
- Protect financial and tax records to ensure business continuity in the event of a disaster.
- As always, we’re here to help sort out your tax responsibilities. Give us a call today if you’re starting a new business.
The following post is from Tom Vestardis, CPA who has extensive experience in tax services, auditing, and financial consulting. His experience includes a broad range of industries emphasizing real estate, retailers, restaurants, computer companies, computer consultants, doctors, dentists, lawyers, wholesale distributors and exporters. He graduated from The American University in Washington, DC with a Bachelor of Arts Degree in business. After several years as a Supervisor for a large accounting firm, he went into practice for himself. Tom holds a Certified Public Accounting certificate from the State of New Jersey. He is also a member of the American Institute of Certified Public Accountants.