Are you starting a business this summer? In addition to feeling excited and ambitious, you’re probably feeling a bit nervous. It’s only natural, especially when it comes to handling business taxes for the first time. Thankfully, you don’t have to handle this on your own. Working with a business tax CPA for your small business accounting needs will give you peace of mind. Here are four business tax tips for new business owners and entrepreneurs from Martinson & Carter CPAs in Rock Hill, SC.
- Apply for an Employer Identification Number (EIN): In layman’s terms, an EIN is like a Social Security Number for your business. You’ll use this number for federal tax filing and reporting purposes. An EIN can be easily obtained online for free.
- Learn about the different types of business taxes: There are different types of taxes that business owners need to be aware of. These include self-employment taxes, employment taxes, excise taxes, and income taxes. To avoid any unpleasant surprises, budget for your tax payments right from the start. Find out when your taxes need to be paid and stay on top of the situation.
- Structure your business properly: The way your business is structured will have a lot to do with the way your business taxes are handled. Is your business venture a sole proprietorship, a partnership, or a corporation? If you aren’t sure which of these is the right choice for your company, a business tax CPA can help.
- Choose the right accounting method: You’ll also need to decide which accounting method to use. This affects when you’ll report your income and yearly expenses. The cash and accrual methods are two of the most common. A small business accounting firm will help you determine the most appropriate method for your situation.
Don’t wait until you’re filing business taxes to make a plan. Talk to a business tax CPA in Rock Hill, SC at Martinson & Carter CPAs.