Your first-time submitting tax returns for business will be different if you are a new owner.
You want to pay the least amount of taxes possible. However, you must file and properly account for all business expenses. This will avoid penalties for tax evasion, which can only lead to several problems for your company’s health.
Instead, learn how to get funds back via tax returns, especially if this is your first time as a business owner.
There were many expenses you needed to account for in the initial stages of your company. You probably had to obtain business loans to finance everything. But did you know that these can be deductible? This is an example of how it works. You can also get a percentage of the money you have spent back.
There are many things you should be aware of when you file your first tax return. Here is a list of steps to make sure everything is done efficiently and submitted by the April 15th deadline.
The Tax Return
It is only natural that you should first understand what a tax return is. The following is how it’s defined:
A tax return is a tax form that is filed with the taxing authority and reports income, expenses, or other relevant tax information. Tax returns enable taxpayers to calculate their tax liabilities, schedule tax payments, and request refunds for overpayments.
You must account for money you have spent and the profits you have accumulated, regardless of whether you file a tax return with your personal income taxes as the owner or as an entity separate from the business, as is the case in C-corporation structures.
Get your Tax Rates
Don’t forget to understand your tax rates when you file your taxes for the first-time. These will differ depending on where you live, and the forms that you will need to submit will depend on how your business structure is set up.
Personal income taxes are based on how much you earn. The more you make, the more taxes that you will have to pay. If you consider the state in which you live, there may be additional taxes to be paid.
The SALT State and Local Tax Deduction has a maximum deduction limit of $10,000. This means that some business owners could be responsible for paying more taxes than ever.
Electronic or Mail
You can choose to submit your tax returns through the mail or in electronic format. Keep in mind that refunds will be issued within 21 working calendar days, and you will receive them much quicker if you process everything online. You can check the status of your tax return through the IRS website!
Initial Deductions
If this is your first tax refund request, there will be more information to include for deductions from your company. You can list all the supplies you bought for the improvement of your business, including equipment financing and supplies and the rent of office space. Wages and salaries paid to employees can also be included as deductibles.
As you build your business and ensure that you have all the tools you need to perform everyday tasks efficiently, remember that the cost of the initial few years will be higher.
Keep track of your business finances and fill out the form
Have you kept a detailed record of all profits and purchases made by your business?
These expenses may include the items that you can claim as your deductible.
It is important to ensure that everything is in order internally. Next, fill out the required paperwork. Individuals who want to claim tax returns must fill out Form 1040. C-corporations use form 1120-W to submit tax returns.
[mpp id=”4″]
Get an Extension
The deadline for submitting your taxes in whole is April 15, 2022. You will need to fill in form 4868 at the IRS page ahead if your business requires an extension.
This will protect you from being subject to late submission penalties and, most importantly, it will prevent you from being charged with tax evasion in any circumstances.
Get Financial Advice
A financial expert can help your company tremendously. They are highly skilled and have a lot of knowledge about tax procedures. You don’t have to struggle to understand all the paperwork when you can seek the guidance of someone who has many years of experience helping individuals and businesses get the most from their tax returns.
It doesn’t matter what you think, it is important to file your taxes on time. This will ensure your company’s stability, financial health, and well-being. It can seem complicated to complete your first tax return as a business newbie. You don’t have the entire task to handle.
You can rely on your accounting department for financial management and advice. They can help you organize and keep all paperwork and file personal and business taxes. Are you sure you have taken care of every deductible, especially when it is equipment loans or other office expenses? Are you sure that all the paperwork is correct? Are you thinking about the tax deadline? These are the types of questions you need to be aware of and your first set tax submissions should be easy.
Many small businesses are struggling to make the tax payments in tax season. Consider looking into a Small business loan Reputable companies. Progressive Business Capital We offer a variety of financing options to meet your cash needs, including to help pay taxes and purchase equipment. Contact us at (800) 508-4532 or via email [email protected] To discuss your small business requirements.
