If you’re wondering will you’ll need to file taxes for your small business, the answer is yes!
But where to start? What forms will you need? How do you figure out how much you’ll owe?
What will you need?
last year’s tax returns
your Employer Identification Number
financial statements (balance sheet and income statement)
receipts and expenses
Keep your bookkeeping up to date
Accurate and up-to-date bookkeeping is possibly the most important ingredient for a stress-free tax season. If your books are a mess right now, that’s okay. You can hire Bench to get you caught up, fast.
How much are small business taxes?
If your business is taxed as a corporation, your tax rate is a flat 21%.
This means it’s important that you always have enough money in the bank to make these payments in April, June, September, and January.
Saving about 25-30% of your net business income will make sure you’ve got the money required to pay your federal income taxes. We recommend keeping this money in a separate bank account from the one you use in your day-to-day business dealings, as a great way to keep you from dipping into this fund.
If your business isn’t taxed as a corporation, that means your business itself won’t pay taxes, but you personally will. Which means you’ll need to consult the tax tables to figure out which tax bracket you fall under.
When you run a business, it’s important to remember that you’ll be paying taxes based on your self-reported net profits. Keep in mind that in many types of small business structures—namely sole proprietorships, partnerships, and S corporations—you’ll generally need to make estimated quarterly tax payments if you expect you’ll owe more than $1,000 in taxes $1,000 in a calendar year.
How We Can Help
Tax Filing in Woodbridge Township, NJ
Need a Tax Filing service in Iselin New Jersey? We're a Iselin based tax firm providing tax and financial services to individuals and businesses. Whether it's preparing your tax return, e-filing your taxes or tax planning strategies, A1 Financial Service is here to guide you.
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Have questions after reviewing your W-4? Our knowledgeable tax pros can help!