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1. #ANNUAL TAXES FOR SMALL BUSINESS LLC HOW TO#
2. #ANNUAL TAXES FOR SMALL BUSINESS LLC FULL#
3. #ANNUAL TAXES FOR SMALL BUSINESS LLC PLUS#

Keep current with law changes The tax law is constantly changing, with major legislation, court cases, and IRS rulings appearing frequently throughout the year. This election makes sense when you have current losses that can be offset by the installment sale gain, meaning that the gain is fully sheltered from tax.

#ANNUAL TAXES FOR SMALL BUSINESS LLC FULL#

However, you can elect to report the full gain in the year of sale, even though payments won't be received until later.

(See below information on changes to federal law regarding Section 179.) Making this election accelerates the deduction, giving you an immediate tax benefit for your outlay. However, under certain conditions, you may qualify to elect first-year (Section 179) expensing to deduct the entire cost of equipment in the year it is placed in service. The cost of buying business equipment usually is deducted by claiming a depreciation allowance (fixed by law) over five or seven years, or longer periods.Depending on what type of business you operate, certain businesses may pay excise taxes on fuels, highway usage by trucks, and for other activities. While the customers pay the sales taxes, you can be subject to penalties for failing to collect the taxes and pay them to the state. If you sell goods and services and you are based in a state with a sales tax, you may be required to collect sales taxes on your transactions. If you are self-employed, you owe self-employment taxes (the equivalent of the employee and employer share of FICA) on your net earnings from the business. If your business is incorporated, you are an employee if you work for the business and you owe these taxes even if you're the only employee.

#ANNUAL TAXES FOR SMALL BUSINESS LLC PLUS#

You must also pay the employer share of FICA, plus state and federal unemployment tax.

If you have employees, you must withhold income taxes and the employees' share of Social Security and Medicare (FICA) taxes. There are federal and, in most cases, state income taxes to contend with, whether the business pays the tax (as in the case of a business organized as a C corporation) or the owner pays the tax on his or her share of business income and expenses (as in the case of a business organized as a sole proprietorship, partnership, limited liability company, or S corporation).

#ANNUAL TAXES FOR SMALL BUSINESS LLC HOW TO#

They might be better off getting a job working for someone else." The following pages will detail the different types of business taxes you need to be aware of, how to determine your deductions, and tips for how to save on taxes so your business - and you - can ultimately benefit. "It might put you in a position where your profitability is so small that it is not worth the effort that an entrepreneur has to put in to run their own company. Colombik, an attorney and CPA based in Itasca, Ill., who has served as the State of Illinois Bar's liaison to the Internal Revenue Service (IRS). "You could sink your business," says Richard M. Failing to properly manage your taxes means that your business might wind up in trouble. Knowing how to minimize the amount of taxes you pay means that you get to keep more of the money you earn. At the same time, the beginning of the next tax year is a good time to review whether you are maximizing your deductions and maybe even get a second opinion on additional ways you can save on taxes. The steps you take before the end of the tax year can help your business save money almost immediately. Taxes may be the least favorite topic for small business owners, but it's one of the most important. At the same time, if you plan ahead, take the right available deductions, and prepare your tax returns properly, you can save on the amount of taxes your business must pay. From the federal government on down to city hall, you need to be aware of which taxes your business needs to pay, how much in taxes you owe, and when you need to file. Tax obligations go hand-in-hand with running a business. But in business there's only one certainty: taxes. In life, it's said that two things are certain - death and taxes.