If you’re starting a business, it’s important to understand your federal tax obligations so that you don’t get an unpleasant surprise later. Here are some basic tips:
- Understand how the structure of your business affects your tax reporting. Make sure that you use the right IRS forms for your business type and understand whether you need to make estimated tax payments.
- Know your business taxes. There are four general types of business taxes: income tax, self-employment tax, employment tax, and excise tax. Make sure you know which ones are owed by your business.
- Get an Employer Identification Number if you need one for federal tax purposes. You can get your EIN within minutes if you apply online.
- Speak to a qualified accountant to understand how different accounting methods affect your reporting. You must use a consistent method to report both income and expenses.
For more information on business taxes, contact a qualified tax specialist. If you would like a recommendation for a qualified tax professional, don't hesitate to contact our office.