Business tax deadlines are quickly approaching – 1099′s and W-2′s must be in by the end of January and corporate taxes must be filed by March 15th. It’s tempting to wait until the last minute to prepare your filings, but it’s best to get started right now. There are so many details to take care of and you don’t want to be swamped with last minute questions or surprises. Delays can increase the likelihood of errors and may even result in overpayment! Do you know how you are going to file this year? Get started by gathering and organizing all your receipts from 2008. Then choose from among the various options for tax filing and support offered to small business owners.
If you plan to file on your own behalf, you’ll need to select the correct IRS forms for your business situation. You may also want to conduct some preliminary research. Attend a low cost informational session at SCORE, the nationwide small business counseling organization. The Chicago area SCORE has upcoming workshops on Accounting & Taxes, held Feb 12 and Mar 12 from 8:45 – 12:30pm, at 500 West Madison Street, Suite 1250. This workshop covers the basics of federal, state and local taxes. Cost is $40 prepaid and $50 at the door. Call 312-353-4540 or email workshops@scorechicago.org for more information.
If you think you want to rely on a professional to file your taxes this year, consider hiring an accountant or tax preparer. Get a recommendation for a reputable consultant through a trusted business associate or use a free accountant search engine. Once you’ve vetted and selected your consultant, go through your receipts and carefully consider your deductions. If you deduct vehicle usage, keep your total and business miles as well as actual expenses for repairs and gas. You’ll want to give the information to your accountant as early as possible and provide them with a comprehensive explanation of your purchases and charitable donations. Send all your business tax information to your accountant in the same package (corporate receipts, income statements and totals, employee salary and benefit information, sales tax, dividend and interest statements, etc.). This will enable them to prepare your return as quickly and accurately as possible – which will mean more savings for you!
It’s not easy to take time off from making money each year to give it away. Unfortunately taxes are an inescapable part of being in business. There can always be improvements to the system, however, so if this season inspires you to strive for change, check out The National Federation of Independent Business. The NFIP is a nonprofit, nonpartisan organization founded in 1943 which lobbies in Washington and all 50 state capitals for members’ rights to own, operate and grow independent businesses in the United States of America.
