As a small business owner, you know that you are responsible for paying a variety of taxes. With this in mind, it goes without saying that you could be faced with some challenges in the future.
Here are several of the top tax issues facing small businesses in today’s world:
— Underpayment of taxes. This is often a concern for new business owners, as they don’t yet know exactly what they are responsible for paying.
— Changes to the tax code. With each passing year, it seems that there are more and more changes to the tax code. As a result, it can be difficult for small businesses to stay current.
— Taking advantage of deductions and credits. You want to save as much money as possible, so it’s a must to learn more about the deductions and credits that your company qualifies for.
— The wrong business structure. There are many types to choose from, with each one having its own pros and cons from a tax perspective. For example, an LLC is not the same as a C Corporation.
While all of these tax issues can be difficult to address, none of them should hold you back for too long. For example, by working with a tax or legal professional, you can put many of these challenges to rest.
Although you have a lot on your plate as a small business owner, you can’t afford to overlook your tax situation. If you do, you could make mistakes that cost you time and money, both now and in the future.
Source: Forbes, “Seven Tax Issues Facing Small Business,” accessed Feb. 24, 2017