Tackling Small Business Taxes

Tackling Small Business Taxes
November 9, 2014

Q: What’s a good way to get a handle on small business taxes?



A: While you should have a good CPA on your team, every business owner needs to have a good understanding of the fundamental business tax rules to plan and operate their business.

Though the IRS may be the agency everyone loves to hate, they only manage the tax laws and policies that Congress passes. To its credit, the agency provides owners and the self-employed much-needed guidance to tax procedures and requirements without those confusing “Gov-speak” terms. Their special Web site, www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/ is an authoritative place to give you a tax smarts tune-up.

A section called “A-Z Index for Business,” for example, covers a tremendous amount of tax territory and includes much of the site’s most useful information. This is where you’ll find information on online learning and educational products, recordkeeping, employer ID numbers and selecting a business structure.

The advice and information under “Starting, Operating, and Closing a Business” is helpful for most types of small businesses. If you have employees, you’ll find resources on hiring, employment taxes and wage reporting requirements. Learn about business tax credits and estimated taxes. The all-important “Business Expenses” section defines the types of costs you can and cannot deduct from your taxes.

For the self-employed and independent contractors, there’s a full section that covers filing requirements, when a tax identification number is necessary, a listing of special publications and forms, and other valuable information.

For information on business taxes in the state of Texas, a good place to start is the web site of the Texas State Comptroller, www.window.state.tx.us/. Here you can find out if your business is subject to the Texas franchise or sales and use tax, calculate what your franchise tax might be, apply for your sales tax permit online, file and pay sales tax electronically, and where to call for help.

For employer information on who must pay, how to file and how to pay Texas state unemployment insurance taxes visit the Texas Workforce Commission web site, www.texasworkforce.org.

To learn more, attend SCORE’s Small Business Tax Workshop on November 19 at the Kingdom Builders’ Center. Presented by Gregory E. Vernon, CPA, you will receive up to date information on taxes and can meet one-on-one with a mentor to discuss your unique situation.