Preparing and Filing Taxes for Small Businesses
A necessary and daunting part of doing business involves taxes, which every entrepreneur has to face annually. As opposed to large corporations, taxes for small businesses are more straightforward. Nonetheless, whether they are doing tax filing Singapore or in the US, most business owners are bound to be confused the first few times of preparing and filing taxes. You can easily deal with the tax filing process if you have the assistance of professional tax consultants such as Koh Management, which specialize in providing tax filing services to all businesses. With their help, you will be able to submit your tax forms online and streamline the complete submission process.
The first step that has to be completed is preparation of taxes:
- You need to get in touch with the Internal Revenue Service and get an Employer Identification Number. While not all small business filings for tax may require this EIN, the IRS has said that banks, governments and other institutions may need an EIN when they are doing business with you.
- Accurate records of all sales and expenditures should be maintained throughout the year. Various documents should be kept by the business such as invoices, sales receipts, deposit slips, canceled checks and others that back your business’s earnings and expenses and can also substantiate any deductions you may be liable for. All tax-related records should be stored by the business in a safe location for at least 5 years. These documents will be invaluable if you are required to explain any item on your tax return to the IRS.
- A bookkeeping system should be maintained for keeping records as evidence for income, expenses and even deductions.
- Make it mandatory for every employee to fill a W-2 or whatever form is applicable for determining the taxes to be withheld for employment taxes. The appropriate amount should be withheld from every pay slip and accurate records should be maintained.
Once you have prepared taxes, now it is time to go for tax filing Singapore or wherever your business may be:
- All necessary forms should be gathered and completed. Different forms have to be used, depending on the type of business i.e. self-employment, sole trader or partnership. It is now easy to obtain forms online through the IRS website.
- An E-file system has now been introduced by the IRS, which can be used for filing taxes online. The E-file system can be used by a large number of small businesses, which has eliminated most of the hassle associated with the process and made submissions quicker.
- The Social Security Administration and every employee should be sent a W-2 form on a yearly basis.
While you may think that you can undertake tax filing Singapore on your own, bear in mind that services such as Koh Management have tax experts who can advise you about the deductions you are eligible for and the loopholes available in tax law. They can also be helpful during the calculation process, taking responsibility for most of the complicated tasks and making it a piece of cake for you. In this regard, see more details here: Tax Filing Services Singapore