Are you worried about your business taxes? Well, don’t be! Business taxes are the price you pay to do business in this country. We’ll help you understand what they are, how much you should expect to pay, and when the due dates are.
Business taxes don’t have to be complex, and you don’t have to be a tax expert to take care of them yourself as long as you remember these six things below:
1. What Are Business Taxes Exactly?
Business taxes are both state and federal taxes that are collected from businesses. They tend to include taxes on income, property, and payrolls.
The types of business taxes you’ll have to pay will depend on the kind of business you have.
There are thousands of different kinds of businesses, so it’s impossible to list all of them here. However, some common examples include corporations, LLCs, partnerships, sole proprietorships, and S corporations.
2. When Do I Have To Pay These Taxes?
The most common tax deadlines are April 15th for both federal business taxes and state business taxes. If you file for an extension, the deadline becomes October 15th. you can request an installment plan from the IRS.
In the event that you cannot afford to pay your entire tax bill, you should not ignore it and hope it goes away. Instead, contact the IRS as soon as possible to work out a plan that will let you pay what you owe over time.
However, keep in mind that they will add interest and a penalty to your tax bill if you miss a payment. If you can’t afford to pay at all, let them know as soon as possible so they don’t send the debt to collections and ruin your credit history.
3. Why Is It Important That I Take Care Of My Taxes On Time?
Not paying your business taxes on time can lead to serious consequences. They include late fees, interest charges, and even tax liens.
We understand that no one looks forward to doing their taxes, however, you’ll save yourself a lot of headaches by taking care of your taxes on time.
Not filing, or paying, your taxes on time is illegal. You could face considerable fines or even jail time depending on the severity of your failure to file and pay.
4. How Can I Get Help With My Business Taxes If I Don’t Want To Deal With Them Myself?
You can get help with your business taxes from both an accountant and a tax preparer. Both can provide you with valuable assistance if you don’t feel like doing them yourself.
Think of it as an investment in your business.
5. What Are Some Good Resources For Filing And Paying My Business Taxes?
Rather than spending hours trying to figure out which forms and documents you’ll need, the IRS website can be your one-stop-shop for all things business tax-related.
You can also learn more about business taxes at SBA.gov.
There are also plenty of blog articles and other resources on the web to help you with your business taxes.
6. What Do I Need To Know About Sales Taxes?
You’ll need to charge sales taxes in states where your company has a presence. Don’t forget that this also means you’re responsible for paying those sales taxes to the state!
For more information about sales taxes and economic nexus check out TaxConnex.
Business taxes are unavoidable, but they don’t have to be scary. Now that you know more about them, you can budget and plan for your taxes with ease. If you need help filing and paying your business taxes, there are lots of resources out there to help you get started!