Your small business needs a powerful tax professional to help you eliminate the possible mistakes and make your tax filing process hassle-free. Tax services won’t be complicated if you keep a track of certain anticipated things that might be going wrong. While New York offers a wide array of benefits for the small businesses it can also be notably costly and complicated during the tax filing period. Depending upon the business type there are several ways of filing taxes which maximizes the operational gains benefiting the owner.
Small business tax services include income tax preparation, IRS representation, sales tax, payroll tax, and bookkeeping. An experienced tax professional will help you walk through the confusion of tax services minefield and know about the procedures you need to be aware of.
Here are some essential tips you need to keep in mind while filing taxes in New York.
1. Identify the right tax form for your business
Your business form decides the kind of tax services required and according to New York laws. Each business type has its corresponding tax services which can be referred to, it can be categorized as:
- Sole Proprietor: Someone who owns separate business by oneself.
- Partnership: Association among two or more partners/people who carry joint trade or business and share equal amounts of income tax.
- Limited Liability Company (LLC): A business with multiple members or owners. It can include individual members and corporation. The structure of LLC is controlled by the state.
- C Corporation: A business which shares its operational gains with its shareholders creating a double tax.
- S Corporation: Firms that appoints gains and losses through their shareholders and avoid double taxation.
2. Dissociate your personal & business expenses
With IRS strict rules, it is mandatory to keep a check on your personal and business deductions. It can be difficult to maintain this when you’re working as a sole proprietor. Since personal expenses are not tax-deductible it needs to be unlinked with the necessary business expenses. Every industry in New York has particular tax service laws to abide by, which differs from standard tax filing course of action.
3. Maintain accurate track records
Every small business owner must be familiar with the specific tax services that revolve around their business type. For industry-specific mandates and tax services, laws keep a well-kept record of any updates and structured systems which enable easy and simple ways to file taxes. Creating a log for all sorts of expenses will help in understanding miscellaneous deductions and help the business tax returns maintain an active account. Records every small business should have handy at least for 3 years include bank statements, invoices, cancelled checks; deposit and cash register receipts and these can be required for tax service verification.
4. Plan your Tax Service Expenses
Plan your finances accordingly to eliminate tax liability. Tax service planning is an ongoing process and needs to be taken into account to determine the right tax services for your business. For effective planning, you should be able to estimate personal and business income, sales revenues, estimating tax bracket, claiming tax credits and better analysis of tax service strategies.
5. Timely Submission of your Taxes
Small businesses require submitting their taxes by a given date, in case it falls on a holiday the due date gets shifted to the following business day. In case of delayed filings, the firm is liable for penalties and these vary for each industry. Although, some businesses can have relaxation if they don’t file their taxes in time and these are some exceptional businesses.
These are few tips to keep in mind while you are looking for tax services in New York for your small business. It can be understood how much havoc filing taxes can create and put your business assets in jeopardy. An experienced tax professional CPA can guide you with your business and legal pursuits and rest assured tax services.