Corporate America Is No Longer Stable
Perhaps you love your job. There is nothing wrong with being fulfilled by your work and enjoying a corporate environment. This can quickly change when your company merges or is sold to new owners. It is common for things to change completely just on the resignation of key officers. This can make the workplace atmosphere you once loved suddenly become unbearable. You might now be in the predicament of proving yourself all over again, even after many years of loyal service. It is better to work for yourself and be the master of your destiny.
Being An Entrepreneur Is Hard Work
No doubt, being a successful entrepreneur will require hard work and dedication. However, the younger generations are no strangers to working several jobs and/or side hustles and still barely making enough money to pay the bills. This is not a comfortable life and will quickly wear anyone down. Comparatively, you will work hard in your own business, but it will feel much more worthwhile. The money will be much more satisfying, and you will be motivated and challenged in a new way.
There is no greater joy than owning and operating your own business. You look over your record-keeping and have a sense of well-deserved pride in your accomplishments of the past year. Then you remember tax season is looming over you like a dark shadow, and a knot of worry forms in the pit of your stomach.
Small and Medium-sized businesses are both the lifeblood of our economy and a crucial part of the American Dream. However, most of the industrious people who run these companies need more time and a proper understanding of the tax code to correctly prepare their business taxes, even with software assistance.
It might be tempting to shelve tax-related issues until April, but this is highly unwise. It is smart to have the right tax professional by your side from the beginning to look out for all the unexpected issues that often plague small business accounting.
What Are Some Of The Tax Surprises That A Business Might Stumble Upon?
Net Profit
Do you properly understand how to handle your cash flow? Are you going to pay taxes purely based on
What is available in your checking account? Many business owners need to realize that their available cash differs from the company’s net profit.
Business Organization
Are you sure that you have chosen the proper business organization? The type of organization has a strong bearing on your tax structure, and you should make sure your organization utilizes the best tax structure for your business needs. Having a small business tax professional look over the Consumer Price Index is a good way to understand your business should be properly structured.
Independent Contractors
Are you confident that your independent contractors have not become employees during the tax year? Did you provide them with the right forms? Businesses need to understand how to properly document all those who have done work for them. The Internal Revenue Service or IRS regulations on such matters can be very perplexing.
Documenting Yourself
Have you, the owner, been taking money out of business to pay personal or professional expenses?
Do you know what to call the money you have taken out? Are you drawing a salary?
Small business accounting can be quite complex and confusing. The wrong guess to any of these tough questions can land you a lot of trouble with the IRS. This is why having the proper small business consultant is crucial to protecting your business from unnecessary taxes and fines.
What Things Should A Business Be Monitoring/Be On The Lookout For To Avoid Any Tax-Related Surprises?
Tax saving opportunities are available from January 1st to December 31st and are not limited to the tax season. You must have someone that can advise you in real-time, so you make the proper decisions through each crucial step of building your business.
Someone who waits till tax season to seek advice will realize that most of the stronger options are no longer available. Every business transaction the business owner makes will have a powerful impact on their tax liability. A solid tax professional will help guide your business through every crucial moment, allowing for more financial security and stability. They will ensure you are sidelined with correct information that will lead to good business tax decisions.
A Tax Professional Can Offer The Following Benefits To A Small Or Medium-Sized Business:
- A tax professional will study your business structure and explain to you what is the best structure for your particular business’s tax liability. They will help you alter the structure if this is the best action.
- Tax professionals will examine how your business is paying and reporting independent contractors and ensure that you comply in this area with all IRS regulations to avoid harsh penalties.
- They can look at past tax returns for deductions that have been missed or valuable credits that are available to the business.
- The tax professional can point out all compliance issues that can be immediately corrected throughout the year. Hence, you have the strongest confidence going forward with all your regular business transactions.
Remember that every business is different and will never be a one-size-fits-all solution to tax questions and problems. This is why it is vital to have a tax professional on your side all year round to guide you through an often confusing tax code.
The tax professional will protect your business from liability and ensure you comply with all major and minor regulations. They understand as a busy owner of a small to medium-sized business, you already have enough on your plate without also worrying about the mind-numbing minutiae of your business tax scheme. Let a business tax professional help you to greater business success and financial stability.
Getting A Tax Resale Certification Is One Of The Best Things You Can Do As An Entrepreneur
As a self-employed person, getting a tax resale certificate can save you money on taxes.
In short, a tax retail certificate allows you not to pay sales tax on items that you plan to resell. This can also apply to supplies used in products you will resell, such as wood for a cabinet.
However, the process can be difficult, and the rules are different for each state. That is why TaxResaleCertificate should do all the hard work for you. We can ensure you get all the advantages of a tax resale certificate without dealing with the hassle of government red tape. Let us handle the hard stuff so you can run your business confidently. Make sure you check out our second blog in this series so you can learn even more valuable information about tax resale certificates.