The IRS wins big when a business owner receives no advice or poor advice.
Some business owners operate under false assumptions. It’s a common misperception that tax time is when to obtain advice on the required annual business tax returns. Often business owners hope that they may receive helpful advice but it’s really too late; the year is over and it’s time to report the income and expense numbers.
There are a million ways to prepare a legal accurate tax return but not all of them will save you the maximum tax possible. Warrior’s CPA-founder has served family-owned business since 1996 and believes firmly the best way to control tax is to be forward looking. We follow processes designed by our CPA-founder and regularly innovated with technology.
The end objective is to know as accurately as possible the profitability DURING the year when you can actually DO SOMETHING to reduce or avoid heavy tax. We lovingly call this tax strategy.
Understanding business tax compliance
Every business, big or small, must annually file and report, amongst other things, income and expenses. And the more sophisticated and tax favorable frequently the higher the level of formality and reporting to the government. Which form you file corresponds to the type of business structure you established.
Income tax
Businesses must file annual income tax returns.
- C corporations pay tax at a corporate rate income rate – which quickly and dramatically escalate with increased profitability
- Most other businesses structures are “pass-through” and pay at each owners applicable individual tax rate(s).
- With proper planning some structures can be tax favorable. However there is NOT a one-size fits all approach.
Estimated tax
Businesses who expect tax greater than $1,000 must pay quarterly taxes, frequently referred to as estimates.
When to pay quarterly estimated taxes
| Payment Period | Due Date |
|---|---|
| January 1 – March 31 | April 15 |
| April 1 – May 31 | June 15 |
| June 1 – August 31 | September 15 |
| September 1 – December 31 | January 15* of the following year. *See January payment in Chapter 2 of Publication 505, Tax Withholding and Estimated Tax |
| Fiscal Year Taxpayers | If your tax year doesn't begin on January 1, see the special rules for fiscal year taxpayers in Chapter 2 of Publication 505 |
| Farmers and Fishermen | See Chapter 2 of Publication 505 |
Business taxes are best performed by professionals
Warrior Business Services are the ideal solution for businesses wanting to focus on growing while we provide the external business tax strategies, preparation, implementation and submission.
Employment taxes
People who are self-employed or have employees must pay employment taxes which are principally FICA commonly known as Social Security and Medicare taxes.
You must pay self-employment taxes if:
- Your net earnings equal $400+
- You are employed by a qualified church-controlled organization
You likely must pay employment taxes if
- You have employees who regularly work for you as defined by DOL or IRS
- You are an owner-employee of your own corporation/LLC
Why consider Warrior Business Services for your business owner income tax?
- Experience means we’ll save you money and typically much more than our fees
- You’ll save time
- You can can focus on things that are important to you
- You’ll be safely represented by a CPA firm with highly trained professional staff
- We are highly rated as evidenced by client reviews online often five (5) stars
- You can focus on making money and on your business growth
- Minimizing tax liability is both a science and an art