Small Business Tax Preparation
Small business tax preparation does not have
to be complicated. However, as with all tax laws, small
business taxes as well as personal taxes can be difficult
to understand. A solid bookkeeping system can help your small
business tax preparation as well as a good accountant and
knowing basic tax laws for small businesses.
How long to keep small business tax
First of all there is no statute of
limitation for small business taxes. That means you should keep
all finance records of the business for as long as the business
is in existence. Even if you use a small business tax
preparation service, you still should know about small business
tax preparation to ensure that you won't be in trouble with the
IRS when preparing small business tax returns.
Basic taxes for small business tax
Below are small business
taxes that you may have to pay or prepare.
Federal Employer Tax Identification
proprietors with no employees, social security
numbers are enough. However, to keep the small
business separate from personal, you may want
to get the Federal Employer Tax Identification
Number (EIN) anyway.
You can get
the EIN online without hassle. You will be
given a temporary EIN until the IRS send you a
letter with the real EIN.
State sales tax registration
If your state has state sales tax, then a
small business must collect sales tax and must register with
the appropriate state agency. That includes selling things
online. A small business needs to obtain a resale tax
certificate for any purchases made from wholesalers. Check
state laws for state tax registration and resale
If a small business has employees then you
need to withhold from their wages:
The small business then have to remit these
funds regularly to the IRS and appropriate state agency.