By 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.
Starting a new business? Give us a call today. As always, we’re here to help sort out your tax responsibilities.