It’s that time of year again. The beginning of a New Year brings promise, as well as the prospect of filing your business taxes. We have a new tax bill, but it does not go fully into affect until tax year 2018. In the meantime, we are here for those of you who need help when you file your 2017 business taxes.
Step 1. Get All Your Documents
There’s no use in filing your business taxes if you don’t have all of your information. This should include but is not limited to:
- Your EIN (Employer Identification Number), addresses for 2017, owners for the year, as well as any other important contact information.
- Records for expenses – Including mortgage, rent, power, water, internet, payroll, insurance, legal/medical expenses, etc.
- Tax records – Gather your documents for sales tax charged/taken in, property tax for your business, any federal taxes due or paid, etc.
- Sales / Other Sources of Income – Know how much your gross business earnings are by collecting documents such as receipts, paid orders, closed invoices, cancelled checks, bank statements, and other similar proof of income.
- Tax Forms to Send – Be sure all full-time employees receive their W-2 forms on time. The same goes for contract employees receiving a Form 1099.
- Remember to send W-2 forms to the Social Security Administration if required.
Step 2. Which Federal Taxes Do You Owe?
The type of business you own will determine what sort of taxes you must pay, as well as how to pay them. The five most common types of business taxes are:
- Income Tax – All businesses are required to file an annual income tax return. The only exception is partnerships.
- Employment Tax – Businesses with employees have tax responsibilities that must be paid, in addition to filling out forms properly. These taxes include 1. Social Security / Medicare 2. Federal income tax withholding 3. Federal unemployment tax.
- Self-Employment Tax – The self-employed are those who work for themselves or have a business of one. They must pay Social Security and Medicare tax as everyone else does. These tax payments will contribute to your coverage under retirement, disability, survivor, hospital insurance, and other related benefits.
- Estimated Tax – You must pay taxes on your own income, which includes self-employment tax. The self-employed may make regular tax payments throughout the year. These payments can be subtracted from the total amount owed.
- Excise Tax – This tax is for certain kinds of businesses such as manufacturers, those who use certain types of equipment, sell certain products, in addition to other criteria.
3. Get a Pro
You have a business to run. You don’t have the time or know-how to file your 2017 business taxes yourself. Neither does your secretary. Make it simple. Get a pro.
You may save money if you file your 2017 business taxes yourself. However, the cost in lost time, as well as elevated odds of being audited, can outweigh what is saved. Don’t believe us? Check out all the IRS forms that are offered for business taxes below.
Filing Options for Business and Self-Employed Taxpayers
More on File Your 2017 Business Taxes
If you live in the Houston area and need a person to do your business’s taxes, feel free to contact us for to learn more on how we can help.