Small Business Tax Tips
Hi there,
It's almost Tax Day! For many small businesses, federal income tax returns are due April 18, 2023. If you file quarterly estimated taxes, the tax payment for the first quarter of 2023 is due April 18. Regardless of the specifics of your tax situation, here are some general tips to keep in mind this tax season:
- Get a head start. Try not to wait until April 18th to file your taxes, if you can. Gather all the documents you need and file early to avoid any unfortunate last-minute surprises.
- Know your structure. The structure of your business determines what taxes you pay. The IRS tells you which forms you need based on your business structure here.
- Report ALL income. The IRS checks your reported income against the information on all 1099 forms they receive. Be thorough, as any discrepancy can raise a red flag.
- Separate personal expenses. It's important to keep your personal and business expenses separate. Even if you are self-employed, it's best to have a separate bank account and credit card for your business so it's easy to keep accurate financial records.
- You can request more time if you need it. If you know you can't get your return in by April 18, you can file for a tax extension. This grants you an extra 6 months to file. But remember, this is just for filing your taxes, not for paying them. Make sure you pay the estimated tax amount by April 18.
For additional tax resources, you can check out our newsletter from April 2022, which includes some more small business tax information and helpful links.
Filing your business tax return can be confusing, especially if you are a new business owner. Don't hesitate to bring in the help of a CPA or tax professional if you need legal advice on your taxes.
Best of luck,
Daniel Eke
Factor Funding Co.
