by: Howard Schwartz
Dont the complexities involved in doing your taxes bug you, specially, if you own a small business? Following and getting familiarized with the guidelines laid down by the IRS for small businesses is very important.
In case you hire other employees for your business, you should attach two forms on your, as well as your employees, behalf. The W-4 form gives the details of the withholding allowance and the filing status of your employee to the IRS. W-4 form is better known as the Employees Withholding Allowance Certificate.
The other important document to be filled up is the Form I-9 that gives the proof of eligibility of every employee to work in the United States. Its also known as the Immigration and Naturalization Service (INS) certification. In case youve any confusions or queries regarding filling up these forms, you can directly call up the INS.
There are a few things that can be done to make sure that the process of filing your taxes is smooth and easy while taking into consideration that you are a small business owner:
- There can be nothing like getting familiarized with the taxing procedures for small businesses. You can directly contact the IRS either by calling them, or by mailing them online. Youll then be able to get all the information that you need on the deductions that you need to make, the cost of depreciation on your machinery, and queries on how to fill up the different forms.
- Logging on to the IRS Small Business website might answer all your questions. The IRS has framed a special program known as STEP, or Small Business Tax Education that you can go through to understand the overall tax structure.
- There are many state governments that offer special tax deduction packages to many small business owners. You can check from the local authorities about these incentives and fill up your tax forms.
- Be careful about classifying your employees in tax forms. Sometimes the IRS mixes up the actual employees with the contractors. Therefore, you should be clear about the process of classification.
- Another tax tip for small businesses is that you should be aware of the sales tax that is applicable on your kind of business. The taxing authorities need to check your permit that enables them to collect the sales tax. Not having a permit, or authorization is considered to be a criminal offence, so you should get registered as soon as possible.
- In order to file your taxes, you should be prepared with all your documents and paperwork. The audit, stubs, records, licenses, permits, receipts, and all the other documents should be placed in order. Organizing all your documentation is also important.
Other than following the above mentioned tax tips for small businesses; you also need to maintain an order in your business. Maintaining your accounts and other documentation, keeping a track of the filings by your employees, and accessing your tax beforehand with the help of your accountant, will save time and money.
About the Author:
Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing Business Plans for companies interested in raising capital from Venture Funds and Angel Investors.For more information: http://www.tax-definition.org