It’s a fact of life. Everyone has to pay taxes, and so do businesses. Tax season is in full swing, so don’t make it any more taxing than necessary. Here are some things to remember to make tax time as easy as possible.
- Deductions – Keep detailed records of expenses including healthcare, salaries, and rent. If more than half of your trip was devoted to business you can deduct your travel expenses as well as other business-related expenses such as meals or hotel stays.
- Employee Taxes – Be sure to pay the proper amount of unemployment, FICA, Medicare, Social Security, and federal and state taxes. Check with your accountant on the correct amounts for 2012.
- Estimated taxes – Be sure to keep up with your estimated taxes due in April, June, September and January, to avoid cash flow problems or an IRS penalty.
- Sales Taxes – If you sell a product, you will need to register with the Colorado tax department and pay sales taxes. Internet companies may be exempt from sales taxes, but pay a use tax instead.
- Keep your Records – Keep all tax records for a minimum of 7 years. Include 1099s, expense receipts, mileage logs, etc.
- Tax Deadlines – April 15th isn’t the only important date for taxes. Keep an eye on your calendar to avoid missing important due dates for estimated, sales, and payroll taxes.
- Loans – The principal and interest of many business loans is considered a business expense and can be deducted.
With a little preplanning and preparation you can significantly reduce tax-related stress, and focus on your business.
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