Are you an owner of a small business that may not have the strongest background in the area of taxes? Many small business owners do not enjoy doing small business taxes. It is challenging to stay up to date with new tax codes, laws, and regulations. Therefore, it can be very helpful for small business owners to invest in a company that has tax professionals. Tax professionals are trained in tax law and can ensure that your business taxes are recorded and filed correctly. Overall, tax planning involves so much more than just estimating how much you’ll owe in taxes. When done correctly, tax planning can minimize your tax burden, maximize your profits, and help your business flourish. The following are small business tax strategies you can use to talk to your professional tax company about. If you need a professional tax company, Harvest Tax & Accounting is here to help.
Decide Whether a Tax Status Change is Beneficial for your Business
Did you know that as a small business owner you have more than one option for how you structure your small business? There are many different business structures that you can choose from. Additionally, some of them provide great tax benefits. Some of the different business structures that you can choose from are: a sole proprietor, partnership, limited liability company (LLC), S corporation or C corporation. Small business owners should look to see if they have outgrown their business structure over the last year. That way, you can change your structure to one that better fits their business. Thus, it can result in tax savings for your small business. Take the time to talk with tax professionals to ensure that this is the best decision for your small business.
Use the Tax Relief Options from the Coronavirus
Another tax strategy that small businesses should take advantage of this upcoming year is to use the tax relief options from the coronavirus. Congress has created and passed legislation that is meant to aid small businesses during the coronavirus if your business qualifies. Some legislation that small business owners should look into are: Families First Coronavirus Response Act (FFCRA), Coronavirus Aid, Relief and Economic Security Act (CARES), Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA), and American Rescue Plan Act of 2021 (ARPA). Further, small business owners can look to see if they qualify for Employee Retention Credit, which is a tax credit for businesses that kept idle workers on their payroll during the pandemic.
Harvest Tax & Accounting’s tax services make the tax recording and filing process as efficient and straightforward as possible. Harvest Tax & Accounting understands the importance of providing professional tax services. That’s why our team works continuously stay up to date with tax codes, laws, and procedures. With more than 45 years of combined experience, the team at Harvest Tax & Accounting has seen it all. Our team takes the time to give you the information that is most relevant to your business right now and we explain taxes in a way that is easy to understand. To learn more about how your business can benefit from our services or to go over small business tax strategies, schedule your free consultation today.