1040 (US Individual Tax Return form<\/a>). \u00a0Your deadline would depend on whether your business runs on calendar year or financial year. \u00a0If you run your business following calendar year, then your deadline to file\u00a0your forms is April 15 just like wage-earners. \u00a0On the other hand, if your business follows a financial year, you are given till the 15th of the fourth month after the end of your financial year.<\/p>\nIf you anticipate owing more than $1,000 in net taxes (less withholding and credits) and your withholding is less than the smaller of 90% of the tax\u00a0to be shown on your current year tax return or 100% of your previous year\u2019s tax liability, then you should make payments of your estimated\u00a0taxes.<\/p>\n
The next common type of business for individuals is a partnership. \u00a0Business partners must file Form 1065 (US Return of Partnership Income) to show how much profit or loss your business has made for the year. \u00a0In addition, you also must file Schedule K-1 (Partner’s Share of Income, Credit and Deductions) and give a copy to the partners. \u00a0These forms are also applicable for Limited Liability Companies (LLC’s). \u00a0The deadline to file is the same as for sole proprietors.<\/p>\n
If you run a corporation, you have to file Form 1120 (US Corporation Income Tax return). \u00a0This should have already been done by March 15th if you follow the calendar year. \u00a0If your business is run following a fiscal year, your deadline is the 15th day of the third month from the end of your fiscal year. \u00a0On the other hand, if your business is an S-Corporation, you are obligated to file Form 1120S (US Income Tax Return for an S-corporation). \u00a0You must also file Schedule K-1 and submit a copy to your shareholders.<\/p>\n
As a business owner, you would be interested to know the types of deductions you can make to lower your taxes. \u00a0Generally the IRS allows deductions that are considered business expenses. \u00a0More specifically, these expenses are:<\/p>\n
1. \u00a0Normal business expenses<\/p>\n
This includes advertising, wages, rental, membership fees to professional organizations, utilities and the like.<\/p>\n
2. \u00a0Purchase of equipment<\/p>\n
You are allowed to deduct\u00a0a limited amount of the cost of new business equipment in a year rather than depreciating the cost over several years. \u00a0The maximum deduction allowed is $25,000.<\/p>\n
3. \u00a0Meals and entertainment costs<\/p>\n
The cost of meals and entertainment may be deducted from your taxable income provided it is not exorbitant but the ceiling is 50% of the cost of qualifying meals and entertainment. \u00a0To qualify,\u00a0you must show there was more than a general\u00a0possibility\u00a0of gaining some business benefit other than goodwill, that you conducted business during the entertainment, and conducting business was your main purpose.<\/p>\n
4. \u00a0Travel<\/p>\n
You can claim travelling and travel-related expenses like meals, laundry, telephone calls, fax charges and lodging.<\/p>\n
In order to successfully claim these deductions, you have to keep accurate records of all expenses such as receipts, statements of accounts, bills etc. \u00a0Keep track of every detail including\u00a0the business reason for your\u00a0expenses, exact amounts spent, dates, location, type of entertainment, and the name, title, and occupation of the people you entertained.<\/p>\n","protected":false},"excerpt":{"rendered":"
Knowledge is protection when the IRS is involved. I'm Darrin Mish, a tax attorney in Tampa with 32 years of experience representing taxpayers nationwide. Here's what I want you to understand. If you are starting out in business, you need to be aware of the tax obligations you have as a first-time business owner. \u00a0If […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[591],"tags":[594],"class_list":["post-13147","post","type-post","status-publish","format-standard","hentry","category-irs-news","tag-irs-forms"],"_links":{"self":[{"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/posts\/13147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/comments?post=13147"}],"version-history":[{"count":1,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/posts\/13147\/revisions"}],"predecessor-version":[{"id":22459,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/posts\/13147\/revisions\/22459"}],"wp:attachment":[{"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/media?parent=13147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/categories?post=13147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/getirshelp.com\/blog\/wp-json\/wp\/v2\/tags?post=13147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}