Small business tax planning tips

Small business tax planning tipsMany small businesses are struggling in the difficult economy, competing with larger, more experienced companies. There are, luckily, many actions that a small business owner can take to keep his or her business afloat. One of these actions is to plan for tax season smartly and plenty of time in advance. Here are a few tips for preparing for taxes of a small business:

  1. Research before taking any actions or hire a consultant to do so for you. If you file inappropriately, there are many penalties, fines and other disciplinary interest costs. That is one reason why is it so important to correctly calculate payroll tax, sales tax and income tax. For this first, simple step, it is very easy to make a mistake, so it may be best to hire someone to assist you with your taxes.
  2. Do not overlook deductions. Very often, there are tax deductions that you do not even know are available to you. These deductions can reduce business costs from your gross income, lessening the taxes that you must pay. These deductions include home offices, entertainment expenses and travel expenses for small businesses.
  3. Correctly classify your business. This can also reduce your tax rate. Different types of businesses have different tax liabilities and rates, so filing with an incorrect type of business many greatly affect your taxes.
  4. Control the due date of your taxes. You do have the option to ask for an extension on your taxes. If your request is not approved, another way to delay the due date is to delay only certain actions while completing others more quickly. Actions to delay include collection of payments and sale of assets, while it is better to complete real estate and equipment purchases more quickly.
  5. Consider monthly payments. If you find it too difficult to pay your taxes all at once, consider setting up a payment plan with the IRS to pay a portion of your taxes each month. Based on your needs and eligibility, there are different payment plans, some of which may be beneficial to you as a small business owner.

Contact a Naperville Small Business Lawyer for Assistance with Tax Planning

If you are a small business owner looking for assistance with your taxes, contact a business attorney in Naperville, Ill. to help you with your tax planning. Attorneys at the Gierach Law Firm are ready to get your business taxes in order today.