Simplifying Small Business Taxes for New Entrepreneurs

Updated: Sep 22, 2023

Simplifying Small Business Taxes ©️ CreateHER Stock.

Starting a small business is exciting, but it also brings new responsibilities, like doing taxes for the first time. Don't worry, this guide will help you understand the basics of filing your small business taxes, so you can focus on being your own boss.

Getting Started with Business Taxes

Filing taxes means telling the government how much money your business made or lost in a year. Everyone, including businesses, has to do this every year. If you miss the deadline, you might have to pay extra money.

There's a tax calendar that shows when you need to file your taxes. It's important to know these dates because you might get deductions or credits that can lower your tax bill or even give you some money back. We've created a list of important tax dates for you.

If you need help with your taxes, here's our Tax Suite for individuals and businesses.

Your Business Structure

Most small businesses are like a special club called an LLC. It's easy to join, lets you have partners, and can protect your stuff if you get into trouble. But there are other types of businesses too, like being on your own or having partners. Each has good and bad things when it comes to taxes.

Organize Your Small Business Tax Documents

To do your taxes, you'll need papers that show how much money your business got and spent. You can get these papers easily. When you talk to the person helping you with taxes, they'll want to know about your business and where it is.

There are different forms you'll use for taxes depending on what kind of business you have. Don't worry, you don't need to remember all of them. Just know that different businesses use different forms. If you have people who work for you, there are special forms you need to give them. One form is like a report card for work, and another is for people who worked for you but aren't your employees. You have to send these forms to the government by a certain date.

Use an accounting system to track of your business income (your sales) and expenses (things you buy for your business). You'll need to know how much your business made as a first step to knowing how much you'll pay in business taxes. Most accounting systems are cloud-based, and you can use it on your computer or phone. It can even remind you when things are due.

Ask for Help

Taxes can be confusing, especially if it's your first time. It's okay to get help from someone who knows about taxes, like a CPA who can advise you on the best tax strategies for your small business. Hiring a CPA is an investment in your business now and in the long term.

Don't stress about doing taxes for your small business the first time. Learning a bit about taxes, staying organized, and maybe asking for help can make it easier. There are tax experts available to help you so you can focus on running your business. Each time you do it, it gets smoother!