What New Businesses Need to Know About Taxes

The subject of taxes often elicits a groan from those who must deal with them; especially those starting a new business. Taxes can be complicated, very involved, and on top of that, they change every year. The requirements of federal, state, and local taxes are all different and need to be sorted out. It’s no wonder the mention of this burdensome, but necessary part of running a successful business can produce headaches.

Resources from the IRS

The IRS is a major source of information regarding what you need to know about taxes. On their website you can get information about choosing your business structure, submitting for an Employer Identification Number (EIN), keeping records, business taxes, and much more. Visit the irs.gov site for current information pertaining to federal taxes. There you will find a link that will also take you to the website for your state.

Even though the IRS website has links to resources regarding your taxes, keep in mind there may be information you will need for your particular type of business that does not appear on their site. They do provide a link for industries and professions, so you can access the information appropriate for your specific type of business.

Keep Meticulous Records

Poorly kept records can be the downfall of any business. For tax purposes and for your own sanity, you must keep your records up to date and they must be accurate. Inaccurate records can cause you to make underpayment of your taxes which will lead to a larger tax liability later.

If your business needs to collect sales taxes, keep that money in a separate account and be sure to pay it to the state on time. You also need to be diligent about your estimated quarterly tax. This is not optional. Failure to pay these taxes quarterly will get you penalties with interest.

Another incentive for keeping good records is the fact that it makes filing your taxes considerably easier and if you should get audited, you will have accurate and current records. Poor record-keeping will cost you plenty in the end, in addition to not providing you with an accurate picture of how your business is doing.

Professional Tax Help is Always Available

Because the tax code is always changing, it is nearly impossible for the average business owner to understand, much less keep up with all the changes. Investing in professional help may be one of the smartest business moves you can make. At MMKR Certified Public Accounts, you can depend on us to provide you with accurate and efficient service. We have a team of experienced CPAs who understand how to help you reach success with your business. Our office is conveniently located in Minneapolis to serve the Twin Cities area. Contact us for your initial consultation to learn more about what MMKR has to offer and how we can help you.