If you are starting a small business, it can be overwhelming to learn about federal tax responsibilities.
The following is a list of basic tips to avoid potential problems:
-Classify workers properly as employees or independent contractors as determined by law, not the choice of the worker or business owner.
-Deposit federal employment taxes, called trust fund taxes, according to the appropriate schedule.
-Start making estimated quarterly payments to cover your own income tax and Social Security self-employment tax liability.
-Keep good records to protect your personal and financial investment and to make tax filing easier.
-Consider a tax professional to help you with Schedule C.
-Protect financial and tax records to ensure business continuity in the event of a disaster.
Starting a new business? Give us a call today. As always, we’re here to help sort out your tax responsibilities.