Originally published on February 9th, 2017.
Article published on Businesszone.co.uk.
As a few of us Businesszone.co.uk writers are actually American, I feel it’s a good time to write . Many of us get excited for this time of year because we look forward to the returns. However, if you’ve never done your taxes as a business owner, you might be freaking out a little bit internally. It’s natural that first-time tax filers are going to be nervous about such an intimidating process, but armed with the right information, taxes aren’t as difficult as they may initially seem!
With that in mind, I’ve compiled a good amount in one place as a sort of “self help sheet”. If you have things to add to it, let me know on Twitter @Robolitious and I’ll see what I can do!
1. Find the Tax Specifics and Restrictions For Your Kind of Business
A sole proprietorship is a lot different than an LLC or a partnership, and corporations are another story altogether. The government obviously recognizes that, and so it matters what you file your taxes under (as in, what kind of business you claim to be), and you don’t want to wait until last minute if you don’t know the stipulations and kind of forms you need for your particular company. That said, different expenses are also tax deductible in different ways. For instance: there’s two options for taxing on auto expenses (for businesses with company drivers), to deduct business-related expenses or claim the standard mileage rate. And both of those are different than travel expenses. Those are only a couple of examples of specifics you may need to look into, and there’s a really good write up on it all that you can read here, which I highly recommend. But that brings up the topic of keeping track of all income and outcome…
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