Tax time can be stressful for small business owners juggling multiple responsibilities, especially with the April 15 deadline looming. With just a couple of weeks to go, there's still time to get your taxes done. If you've kept track of your financial records throughout the year, you may find yourself in good shape. Even if you haven't, the good news is that there's still time to prepare your taxes, and to avoid some of these common pitfalls while doing so.
One way to safeguard your business from tax mistakes is to hire an accountant to prepare your taxes for you. It may be more expensive but if you're in a hurry it could save you in time and potential errors. If you decide to prepare your taxes yourself, here are a few suggestions to bear in mind.
Be sure to file on time to avoid penalties and thoroughly review your tax documents to be sure that you've covered every detail. Even a seemingly small error like a missed signature can interfere with your taxes being successfully processed.
You may be able to write off business expenses like a home office. In order to qualify, your home office must be specific area used exclusively for business purposes. Business-related travel expenses can also be written off at tax time in certain circumstances if you have kept a solid record of them.
It may seem obvious, but remember to include your tax payment. Sometimes steps as obvious as this one can be overlooked when in a rush to get things done.
Any business filing taxes will be required to provide a Federal Tax ID or Employer Identification Number, which the IRS uses to identify your company when filing your taxes. This number is issued by the IRS, but can be easily obtained through the help of an incorporation services company when incorporating your business.