If you own a small business, you might have a few questions regarding your business and taxes you owe. Here are three common questions and answers, compiled by the Huffington Post:
1. Who do I owe?
As a small business owner, you might need to put together multiple tax returns for the different authorities you owe. You will file federal and state taxes, but you might not be aware of others that should be considered as they relate to jurisdictions, employees, sales and payroll related taxes.
2. What are deductible expenses?
According to the Huffington Post article, anything that is helpful and appropriate for your business is deductible. Things that are NOT deductible include traffic tickets, clothing, home telephone lines and unnecessary trips.
3. What are some of the biggest tax mistakes I might already be making?
Some common mistakes include:
- Not keeping track of receipts and expenses.
- Commingling your business and personal funds throughout the year.
- Trying to do your own bookkeeping with little to no understanding of how it all works.
- Not keeping up with deductibles that might be available to you.
For more tax tips, read the full article on the Huffington Post.