Working a regular nine to five job can be draining for some people. If you are tired of depending on others to make a living, why not start a business? While making a business successful will not be easy, it will allow you to take control of your finances. One of the main things you should focus on when trying to start a business in NY is avoiding common tax mistakes. The last thing you want is to throw up any red flags for the IRS. Read below to find out about some of the most common tax mistakes new business owners make and how you can avoid making them altogether.
Failing to Pay Quarterly Taxes
Paying quarterly taxes is something you have to get used to when you start a business in NY. Regardless of if you are filing as an LLC or even a sole proprietorship, you need to make sure your quarterly taxes are paid. Even if you don’t cut a check to the IRS every quarter for these taxes, you need to put it into an account so you can use it to pay once a year. Neglecting to do this will lead to tax liens and may cause you to have to shut the doors of your business.
Not Tracking Your Expenses
Some new business owners view tracking their expenses as an unnecessary task. The main reason why you want to track your expenses is due to the tax breaks it can allot you. The more deductions you have for things like office supplies and other essentials, the lower your yearly tax debt will be.
If you are trying to start a business in NY, you need to work hard to understand what your tax obligations are. Working with professionals in the small business tax world is a great way to avoid common mistakes.
The team at Uncle Phil’s Tax Advice can help you figure out what you need to do to avoid small business tax trouble. Visit their website or call them at 855-829-8477 to find out more about the services they offer. You can connect with them on Facebook for more information!
