Nobody wants to think about their small business’s taxes, especially when tax season seems so far off. However, if you want tax day to be a relatively painless affair, you should be proactive in your planning now so that you can pay as little as you can, and pay it on time.
Waiting until the last minute to come up with what you owe in small business taxes is a bad idea. It can put a strain on your finances or even leave you wrestling with the IRS to create a payment plan. Instead, try socking away 20% of your gross revenues throughout the year. Put it in a high-interest savings account to make a little money while you wait for tax time to roll around. That way, when your bill shows up in April, you’ll be able to pay it with ease. You should also be careful to deduct your home office expenses. These deductions can really add up, especially if you factor in mileage. If you’re going to have a lot of cash on hand at the end of the year, make any key purchases before 2016 to minimize your tax exposure. Finally, you must stay on top of your 1099s and W-2s. You are required to send these by January 31, 2016, and delaying could get you penalized!
Read the full article here: Tax Planning 101 for Small Business Owners