Business Tax Planning
We understand the challenges you face when preparing taxes for your business. As an owner, running a business means you have important obligations overseeing day-to-day operations, keeping your product relevant, taking care of your employees, and staying on top of marketing. Having to put aside additional time to do your yearly business tax preparation can be daunting. Our tax service does this work for you, so you can focus on your business knowing your taxes are being handled by a professional with your best interest at heart. We are here to protect your business and see you succeed.
How Do We Prepare Your Business Taxes?
After gathering your income information, we begin by estimating your quarterly tax payments. This diminishes the possibility that you will be subject to penalties. It is also crucial to separate any of your personal accounts from that of your business account. We also recommend you have an account that is solely used for taxes. By setting up this account, you can put money aside so it is available if and when you need it. We also help you organize and keep track of any business related travel and expenses that occur during these times. As a business owner, you can also open a health savings account. This allows you to deposit money pretax for any health care related expenses.
What You Need to Know About Quarterly Tax Payment Estimates
Depending on the type of business you own and how much you owe you may need to pay estimated taxes. When you own a business, you may not receive a paycheck like your employees do. This means that income taxes, Social Security taxes, and Medicare taxes are not withheld from payments. However, the IRS requires that these be paid during the year. Due to this requirement, paying estimated taxes is your best option as a business owner.
We calculate the amount of estimated tax to include the following requirements:
1. The income make from your business during the year
2. The total amount of self-employment tax you owe based on your income
The type of business you have also determines how your taxes are calculated. We deal with sole proprietors, partnerships, LLC, S-Corporations, Corporations, Trusts, and Non-Profit organizations. As experts we know how each of these businesses differ in tax requirements and what forms are necessary for filing. Having our experts take care of the intricacies of these taxes for you will save your business time and money. No matter what your business type, we look at your income from all sources. This includes your business and personal tax returns.
How Much Do I Have To Pay In Estimated Taxes?
This is a question we are often asked by our clients who own businesses. Simply put, you match your estimated taxes with your tax income. The important thing to remember is that you are required to pay enough tax in order to avoid being charged a penalty. We crunch the numbers for you and keep detailed records so you are never put in a position where you are at a risk of paying penalties. Even if our numbers show you are likely to receive a refund, these estimated taxes must be taken care of. We also make sure your 1040-ES and 1120-W are filled out correctly. These refer to your personal tax return and your corporation tax return.
How Should I Pay My Estimated Taxes?
You have options when paying your estimated taxes. You can pay by check. You can use the Electronic Federal Tax Payment System. You can use Direct Pay, which is linked to your bank account and credit card. If you choose to pay by check, we make sure you include the necessary payment voucher that is provided by the IRS. There are four vouchers because there are four quarterly payments.
How Do I Avoid Penalties?
We are your ally when it comes to avoiding penalties. The IRS charges penalties for underpayment and late payment of taxes. These penalties also are charged for estimated tax payments that should have been made. That being said, when you use our services, that will never happen to you or your business. By outsourcing your accounting, bookkeeping, and payroll, you will save yourself extra time and avoid frustration. You will be more efficient. Having the right experienced team working on your accounts can make all of the difference.
At FJ & Associates, we know that estimated tax payments can be complicated and seem overwhelming. We also know each business is unique and different. That is why we take the time to work with our clients one on one. We are a detailed oriented profession and we are excellent at what we do. Our services allow you to put your business and passion first. We know you want to take care of your employees and see your business succeed and grow. Having your taxes filed correctly and in a timely manner is the best way to support that growth.
