Folks starting a small business are often challenged by their new tax filing requirements. It can be overwhelming to learn about federal tax responsibilities.
The following is a list of basic tips to avoid potential problems:
• 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.
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