3 Tax Tips Your Start-Up Needs to Implement
Are you the new business owner of a start-up? Owning a business means you’re now responsible for managing the day-to-day operations, hiring employees, selling your product or service, marketing your brand, and more. While these are vital steps in having a successful start-up, you mustn’t forget about your taxes.
If you’re looking for tax tips to help your start-up succeed, you’ve come to the right place. Here are the essential tax tips to know so your start-up doesn’t experience tax-related issues down the road.
Prepare Your Taxes
Having a start-up comes with plenty of responsibility, including preparing your taxes. In order to ensure taxes are orderly, there are a few things you can do. First, starting a separate checking account and having a business credit card is vital. You’ll have accurate statements for your business and know what is bought or who is paid. Second, you should keep records of your receipts and track how many miles you travel in your business vehicle. Keeping accurate records of your expenses and income will allow you to file your federal income tax return with ease before the deadline.
Understand Tax Deductions
One of the benefits of owning a business is having access to different tax deductions, provided you qualify. The IRS has a guide on tax deductions your business might qualify for that can be written off to lower the amount you owe on your income tax. Such tax deductions can include:
- Business meals
- Work-related travel expenses
- Business insurance
- Office supplies
- Phone and internet expenses
- Depreciation on business vehicles or machinery
Remember Payroll Taxes
Now that you are in charge of a startup business, you likely have a few employees who need to be paid. When you have employees, you’re responsible for withholding their income tax and remitting those taxes on a quarterly basis to the federal, state, and local government. This process can be tricky to get right, so it is best to hire the assistance of a CPA and financial advisor who can complete the task correctly for you.
Tobin & Collins is Ready to Assist with Your Taxation Needs
At Tobin & Collins, we offer comprehensive and diversified tax services, financial and reporting services, and outsourced accounting services for businesses. We can transform your daily transactions into accurate and valuable financial reports. Get in touch with us today!