Why does a business need to file annual/quarterly taxes?
Your company should always focus on complying with the tax rules and regulations, annually and quarterly. What this means is you want to file your taxes accurately, and as fast as possible, otherwise you will end up dealing with a huge range of issues. You are required to share your company’s income, and failure to do so will bring forth penalties and in some cases discontinuance of your business entity.
Business owners: Must make estimated quarterly tax payments throughout the year. Failure to make estimated quarterly taxes will result in penalties.
Each company has to file taxes differently. If you are an LLC, you have to use the 1065 form. Corporations have to file the 1120 form, and S corporations need to use the 1120S form. Things can get quite confusing when using these forms, so it’s always important to make sure that you work with a professional that can complete this for you, in order to avoid mistakes.
Why small businesses need a CPA?
Starting a small business will require you to focus on multiple costs, but taxes, in particular, should be something you should place high priority on. Taxes can be very difficult and confusing which causes many entrpreneurs not to file taxes or file taxes incorrectly. The IRS constantly scours the market to identify businesses that don’t pay their taxes, and if they catch you, then you have to deal with some hefty fines. To avoid that, the best thing you can do is to file your annual taxes before the due date.
Hire a CPA
It all comes down to the structure of your business and your business need. But yes, most of the time companies should hire a CPA, because working with a licensed professional will make the entire filing process faster and convenient. Then you have the fact that CPAs are more familiar with the tax laws, which is yet another important thing to take into consideration.
As a result
Your business will operate more efficiently!
Click here for more on “Why to Hire an accountant” for your business.