Get your U.S. business ready for tax season

Tax requirements vary by state and can change depending on the structure of your business, so you'll need to do some research and find out how to calculate your state and federal taxes. The IRS Small Business and Self-Employed Tax Center can help you determine what federal taxes you owe. Information about state taxes can be found on your states' Department of Revenue website.

Employment taxes include Social Security and Medicare taxes, federal income tax withholding, and federal unemployment (FUTA) tax. To learn more about these, see the IRS article on Employment Taxes for Small Businesses.

Every business is different, so each business may file different tax forms. NerdWallet has a comprehensive list of IRS business forms to help small business owners understand their tax obligations. Find out which forms you must complete in advance to have enough time to file.

Does your business qualify for any small business
tax credits? Visit the IRS’s website for credits and deductions for businesses
to get familiar with these deductions and figure out which ones your business
can benefit from.

Scrambling to make a payment just before its due date is stressful, and you may be penalized for late payments. Rushing to finish your taxes could also lead to making mistakes. Avoid the stress by learning when your taxes will be due and plan to make the payments on time or early. The IRS tax calendar can help you
track when payments are due and can even send you email reminders a week or two before payment due dates. Starting your taxes early can also give you extra time in case you run into any problems or questions about your taxes.

Many small business owners struggle with this point, but separating your finances is worth the effort. Not only will it be easier to sort through your income and expenses as you prepare your taxes each year, but it will make the audit process much smoother should you ever be subject to one.

It’s tempting to forget about taxes the moment you file for the year. Creating good habits throughout the year will help you avoid struggling to get all your paperwork and payments together at the last minute. Make an effort to track your expenses, digitize receipts, and invest in software to improve your record keeping and facilitate accurate tax payments made on time. Keep any business documents you’ll need for your tax returns in a special folder to have them ready come tax
season.

Not all small business owners are accounting experts, and chances are they don’t have the time to keep track of the accounts while making sure all the other aspects of their business are running smoothly. Hiring a qualified accountant or tax preparer is a wise business investment that can help your business thrive and even save you money in the long run. Search BBB.org to find BBB Accredited accountants. You can also check the American Institute of CPA’s directory to find licensed CPAs.

Con artists have come up with several tax scams designed to cheat businesses out of their money or steal businesses’ identities. Some scammers target businesses with fake government notices in the mail. Always carefully guard your sensitive tax, business, and personal information and learn how the IRS works to avoid being fooled. Call the IRS directly to verify if you’re ever in doubt about whether something is a scam. You can also monitor the IRS’s tax scams and consumer alerts page to be updated on the most recent tax scams.