3 Ways to Get a Jump on Your 2019 Business Taxes
February 6, 2019 |
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Whether you’re a 1 person business superstar, or the owner of a Fortune 500 tech company, it’s never too early to start thinking about your 2019 business taxes. Make sure you’ve got everything in order for the best tax year yet by following these 3 simple tips.
1. Know Your Tax Dates.
When you’re filing your personal taxes, there’s one date to remember: April 15. But when you’re running a business, there are a number of important dates you need to keep on your calendar. Depositing payroll taxes, filing quarterly forms, sending out W-2s, and so much more. If you have a dedicated financial person or accountant to help you with the dates, then you’re probably in good shape, but it’s not a bad idea for you to know the dates as well.
The IRS offers a convenient calendar and reminders to help you keep on top of all your tax-related dates. Check it out and sign up here.
2. Keep Up-to-Date on Tax Changes.
It seems like every week there’s a new law to be aware of, especially when it comes to businesses. Make sure you stay on top of the latest changes and news. The IRS website is a great place to stay informed — especially since they’re the ones enforcing the laws. Take some time to look at the changes to qualified business income deductions, meal and entertainment expenses, excess business losses, fines and penalties paid to a government, and more.
Start by reading this article with some of The Highlights of Tax Reform for Businesses.
3. If You’re Starting a New Business, Make Sure You Pick the Right Type.
There are different kinds of business entities, and each of them comes with their own benefits. For example, the qualified business income deduction allows businesses to deduct up to 20% of their qualified business income — but only for S corporations, LLCs, partnerships, and those who file Schedule C.
There are a few limitations and phase outs for income levels, so make sure you take the time to sit down with a CPA to figure out which one might be the right option for your new business.
There will be more business tax law changes as the year continues, but these three steps will help ensure that you are on top of everything tax-related for your business. Do more for your business early and set yourself up for success.
If you need the right solutions for your business, Dime is here to help.