All small businesses are required to calculate their profits and losses, as well as their business tax assessments, and include them on IRS forms which must be submitted to the government.
Here are some tips on how you can prepare for this annual event, so it doesn’t sneak up on you.
Due date for filing
Most small businesses file their tax returns along with their personal income tax documents, which means that the due date is the same for the business tax documents as it is for personal material. This date is April 15, unless that happens to fall on a weekend or holiday, in which case the due date shifts to the first business day afterward.
Should you hire someone to prepare your tax documents?
The general answer to this question is ‘yes’. Unless your small business is very simple and uncomplicated, so that you can do it yourself using a business tax software program, you’re better off to hire a knowledgeable tax preparation specialist. If you have a business which is a partnership, you will definitely want to hire a specialist, since filling out partnership documents can be quite complicated.
Self-employment taxes
All small business owners are required to pay self-employment taxes such as for Medicare and Social Security. Any good business tax software program can perform these calculations for you, or you can attempt to figure it out for yourself by using schedule SE.
Filing for an extension
If you need to file for an extension of time before you can complete your tax returns, the extension period granted is for six months, as long as you are not a corporation, and are a true small business. That would make your filing date October 15, unless the date happens to fall on a weekend or holiday. It’s important to note that when you are granted an extension for filing your taxes, that extension does not include any deferment on paying your taxes – those must still be paid by April 15.
Need money to pay your taxes?
If your company needs capital to pay off unexpected taxes, or for any other business purpose, we might be able to provide the financing you need. Contact us at Elevation Financial so we can discuss ways that you can obtain business financing to keep your operations running smoothly.