If you are a small business owner, income taxes will be a worry you will have to deal with yourself. Taxes are one of the major issues of a business and dealing with them wisely will help an organization save a lot of money. This article sheds some light on a few lesser-known tips and tricks about small business taxes which you can use.

#1

Deductions in taxes paid: Writing off as much taxes as possible is the main task of tax accountants during tax time every year. Taxable income can be reduced substantially by deducting ordinary and necessary business expenses from the revenues. Some deductions such as salaries, rent, business travel and equipment are quite obvious but there are far many potential deductions that good tax accountants are aware of. Lesser-known deductions are trips in which more than half of the time is dedicated to business and losses in business.

#2

Quarterly estimated taxes: It is important that you pay quarterly estimated taxes on time, especially if you are a small business. You don’t want to invite the wrath of the IRS, do you? If the total tax bills for a year exceed $500, then quarterly estimated tax has to be paid.

#3

Deductions from employees: If your business employs people, there are income taxes which have to be deducted from their wages. Medicare, Social Security (FICA) and state and federal income taxes will be deduced. Again, as an employer you will need to match the Medicare and FICA taxes of your employees. Also, your business will have to pay the government unemployment taxes.

#4

Sales tax: Does your small business provide goods or services? Most products and some services are taxable. If you are selling a product or service that is taxable, you will have to register with the Tax Department and pay small business taxes. If you have a physical presence in the state, that is, if you have employees, an office or a warehouse, you will have to pay state sales tax. If you have an online business, you will have to pay “use tax”.

#5

Store: Tax accountants should store all tax-related documents for 7 years. This includes licenses, business tax returns, capital equipment expenses, incorporation papers, vehicle mileage logs, client 1099 forms and expense returns.

#6

Charity deductions: Tax accountants will do well if they keep in mind charitable deductions as that could save a lot in small business taxes. Charitable institutions deemed by the IRS as qualified are the only ones which will work of course.

#7

Keeping in mind important deadlines: Other than the April 15 tax deadline all tax accountants should keep in mind, there are other income taxes that a small business has to pay. Keeping to these important dates and paying up all taxes is important for stress- free environment.

#8

Periodical checking http://www.irs.gov/businesses/small/ by tax accountants is a good idea to keep track of all the new regulations IRS comes with.

With these few tips on small business taxes you could be on your way of being a resounding success.