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Tax Tips for Small Businesses

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					by: Howard I Schwartz

Tax Tips for Small Business Owners / Tax filers: http://www.tax-definition.org/tax-tips

Dont the complexities involved in doing your taxes bug you, specially, if you own a small
business? Following and getting familiarized with the guidelines laid down by the IRS for small
businesses is very important.

In case you hire other employees for your business, you should attach two forms on your, as well
as your employees, behalf. The W-4 form gives the details of the withholding allowance and the
filing status of your employee to the IRS. W-4 form is better known as the Employees
Withholding Allowance Certificate.

The other important document to be filled up is the Form I-9 that gives the proof of eligibility of
every employee to work in the United States. Its also known as the Immigration and
Naturalization Service (INS) certification. In case youve any confusions or queries regarding
filling up these forms, you can directly call up the INS.

Business definition : http://www.tax-definition.org/Define-Business.html

There are a few things that can be done to make sure that the process of filing your taxes is
smooth and easy while taking into consideration that you are a small business owner:

a. There can be nothing like getting familiarized with the taxing procedures for small businesses.
You can directly contact the IRS either by calling them, or by mailing them online. Youll then be
able to get all the information that you need on the deductions that you need to make, the cost of
depreciation on your machinery, and queries on how to fill up the different forms.

b. Logging on to the IRS Small Business website might answer all your questions. The IRS has
framed a special program known as STEP, or Small Business Tax Education that you can go
through to understand the overall tax structure.

c. There are many state governments that offer special tax deduction packages to many small
business owners. You can check from the local authorities about these incentives and fill up your
tax forms.

d. Be careful about classifying your employees in tax forms. Sometimes the IRS mixes up the
actual employees with the contractors. Therefore, you should be clear about the process of
classification.

e. Another tax tip for small businesses is that you should be aware of the sales tax that is
applicable on your kind of business. The taxing authorities need to check your permit that
enables them to collect the sales tax. Not having a permit, or authorization is considered to be a
criminal offence, so you should get registered as soon as possible.
f. In order to file your taxes, you should be prepared with all your documents and paperwork.
The audit, stubs, records, licenses, permits, receipts, and all the other documents should be
placed in order. Organizing all your documentation is also important.

Other than following the above mentioned tax tips for small businesses; you also need to
maintain an order in your business. Maintaining your accounts and other documentation, keeping
a track of the filings by your employees, and accessing your tax beforehand with the help of your
accountant, will save time and money.

Tax Tips for Small Business Owners / Tax filers: http://www.tax-definition.org/tax-tips

This article was posted on February 20, 2006

				
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