The Business Checklist for Tax Date
Tax day is quickly approaching, and if you are anything like the majority of Americans, it might be something that you dread. Tax season can be a stressful time for anyone, but especially for business owners who have to file their taxes as well as pay employees. Tax Day can also be an opportunity to get your business organized! This checklist will help make Tax Day easier on everyone by making sure all of your ducks are in a row before the deadline hits.
1. Make sure you have all the necessary documents with you.
Make sure you have your articles of incorporation or organization, federal employer identification number (EIN), and any business licenses on hand. If you are a corporation, be aware that California requires corporations to file an annual statement from the Secretary of State’s office as long as they do business in California. You must also keep this form together with your other tax information throughout the year so it can be included with your return next April 15th. In addition, if you were incorporated before 2011, make sure to update your bylaws every three years. Be prepared to write-downs expenses and income on your return. If you have a home office, be sure to keep all of the necessary documentation such as room measurements and utility bills, in case you are audited.
2. Get organized for tax time
Tax Day is just around the corner, and if you’re a business owner then it can be one of the most taxing times of the year. Tax time may seem like an overwhelming process for small businesses that lack accounting expertise. But with some organization and planning, filing taxes as a small business owner doesn’t have to be such a pain. Make sure you are up to date on all passwords, accounts & software systems. Nothing creates more stress than trying to access information that has been misplaced or forgotten about somewhere in cyberspace! Be certain that everything needed for tax preparation will be readily available when file day comes along; this includes financial statements, company policies, and procedures.
3. Determine what type of business entity you are
There are two types of business entities: sole proprietorships and corporations. A corporation is a separate legal entity from the owners, which means that they have different forms to file with state & federal tax agencies as well as their income statement at the end of each fiscal year (April). Tax treatment will vary depending on what type of corporation you choose.
4. Find out if you need to register for any state or local permits or licenses
You know that there are things like setting up bank accounts and filing for Tax Day that need to be done, but don’t forget about some less obvious items including permits and licenses! Knowing what you’ll need ahead of time can help save money on fines or even stop an issue before it starts.
Find out if you need to register for any state or local permits or licenses. Depending on where your business operates, there could be certain rules regarding operating hours, hiring employees, etc.