Small business tax help website
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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 records?

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 preparation

Below are small business taxes that you may have to pay or prepare.

Federal Employer Tax Identification Number


Small Business Tax Preparation

For sole 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 certificates.

Withholding requirements

If a small business has employees then you need to withhold from their wages:

  • state and federal income taxes
  • Social Security taxes
  • Medicate or FICA (from the Federal Insurance Contributions Act) taxes

The small business then have to remit these funds regularly to the IRS and appropriate state agency.

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