culled from:evolveyourbiz.com
It should not come as a huge surprise that your business needs a tax
consultant all companies do. The taxes for businesses are much more
complicated than they are for individuals so doing
them by yourself is not really an option. Most small businesses wait too
long before they bring in a tax consultant, you actually want to have
one right from the beginning. The main reason
for this is that a lot of the decisions that you make in the early days
will affect your tax situation down the road.
The first reason that you need to have a tax consultant when you are
starting your business is to make sure that you are actually paying all
of your taxes. This can actually
be more complicated than it sounds as it can often be hard to determine
exactly how much income a business has. In addition if you live in a
place that
has a sales tax and you are selling products that are subject to the
sales tax you are going to have to have a way to keep track of all of
those sales.
There are business accounting services that specialize in this.
The other big reason that you want to have a tax consultant when you are first starting a business is that in the early days you will likely have a lot of write offs as you can write off most of the equipment that you have to buy in order to get your business up and running. Things get even more complicated however because in the early days you may have a lot of deductions that you can take but you will probably not have a lot of income. It is possible that you may be able to carry some of these deductions forward to be used in future years when you actually have an income. A tax consultant can help you to figure this all out.
Once you have bought the equipment you may still be able to take a deduction on it in the future because of its depreciation. This is something that you will need to figure out how to account for as a business expense. Your tax consultant will know how to do all of this so that you are paying all of the taxes that you are required to pay without paying more than you need to.
Clearly it is important to have a good tax consultant for your business, the question then becomes where do you find one? There are lots of people who can fill this role, most people go with an accountant but there are lots of other good choices. Your best bet is to talk to other business owners to see who they use; somebody you know should be able to point you towards somebody good.
The first reason that you need to have a tax consultant when you are
starting your business is to make sure that you are actually paying all
of your taxes. This can actually
be more complicated than it sounds as it can often be hard to determine
exactly how much income a business has. In addition if you live in a
place that
has a sales tax and you are selling products that are subject to the
sales tax you are going to have to have a way to keep track of all of
those sales.
There are business accounting services that specialize in this.
The other big reason that you want to have a tax consultant when you are first starting a business is that in the early days you will likely have a lot of write offs as you can write off most of the equipment that you have to buy in order to get your business up and running. Things get even more complicated however because in the early days you may have a lot of deductions that you can take but you will probably not have a lot of income. It is possible that you may be able to carry some of these deductions forward to be used in future years when you actually have an income. A tax consultant can help you to figure this all out.
Once you have bought the equipment you may still be able to take a deduction on it in the future because of its depreciation. This is something that you will need to figure out how to account for as a business expense. Your tax consultant will know how to do all of this so that you are paying all of the taxes that you are required to pay without paying more than you need to.
Clearly it is important to have a good tax consultant for your business, the question then becomes where do you find one? There are lots of people who can fill this role, most people go with an accountant but there are lots of other good choices. Your best bet is to talk to other business owners to see who they use; somebody you know should be able to point you towards somebody good.
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