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While tax planning is a year-round event if you want to minimize your business's tax bill, and effective tax planning is essential to ensure the financial success for any business, be it big or small. Many small business owners ignore tax planning, and don’t even think about their taxes until they’re scheduled to meet with their accountant at the end time of settling their taxes. To comply with federal and state tax laws small business owners need to understand tax basics. Experts recommend that entrepreneurs and small business owners conduct formal tax planning sessions in the middle of each tax year as it will give them time to apply their strategies to the current year as well as allow them to get a jump on the following year. These guidelines can help small businesses assist with tax planning * Set up a Calendar One of the most important tax-planning tools are a tax calendar. You can utilize the calendar to keep track of important dates and deadlines. Also, you can list filing deadlines for forms such as 1099s and W-2s. The IRS website has a desktop calendar tool you can customize to meet the individual needs of your business. * Appoint a Professional As a small business owner you are responsible for ensuring your business taxes are filed properly. One way to make sure your business is in compliance with federal and state tax regulations is to hire a tax professional. The today majority of entrepreneurs realizes that paying slightly more professional fees will make tax savings outweigh the initial expenses. * Preserve Documents Document maintenance is an important part of tax planning. Maintaining tax records, such as income statements, balance sheets and purchase receipts, helps you prepare your tax return as well as manage your business development. * Keep a track of expenses As the IRS allows tax deductions and credits for qualified business expenses, it is essential to keep a track of all expenses related to your business throughout the year.. Keeping a thorough record of deductible expenses will ensure you do not forget them when preparing your tax return. Look for effective tax planning solutions as a positive balance sheet is a better choice instead of remitting greater amounts in taxes. Expert tax professionals can provide advice and guidance on deductions and credits your business may qualify for and they are knowledgeable about the tax laws and codes that could affect your business. Read More About: IRS Amnesty, FBAR, Overseas voluntary disclosure, Entity Formation
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tax planning, IRS Amnesty, FBAR, Overseas voluntary disclosure, Entity Formation,
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