26. May 2019 · Comments Off on 5 Lessons Learned: · Categories: Pets & Animals

Tips and Guidelines on How to File Business Returns
Experts estimate the corporate tax for the financial year 2020 to reach 6 million which is only possible when all business owners come out to file their taxes every tax season. Research shows that most people do not like the idea of filing their taxes considering that they think that the process is so complicated and challenging to them. Holding onto such thoughts can be so dangerous as it makes most people to eventually fall into trouble e especially when they do not prepare for businesses tax filing adequately all in the name of the process of demanding and challenging. Reading through this post is the best thing that one can do when preparing to file their business taxes as it states everything one needs to know about the entire process.

There is a group of business owners that are known as sole proprietors which means that they own and run the business alone with no one else and it is the simplest kind of business structure in the market today. It is the enterprise that is owned and operated by one person and filing taxes in such circumstances is simple and relatively straightforward. This business structure only requires the owner to file the tax based income and they are good to go as there are no any kind of taxes to be paid on behalf of the company. While paying income tax, the business owner must remember that even though they have to pay income, self-employment tax always comes first and it entails not just Medicare but also social security taxes as well. Under this category, one is also required to pay estimates quarterly while at the same time filing their returns annually which brings the need to familiarize oneself with the estimated tax. Most business owners opt for the above method when paying their self-employment taxes as well as income taxes for their staff while at the same time taking note that the form 1040-ES is most useful at this point in the entire process. Most excitingly, sole proprietorship also allows one to choose between Schedule C and C-EZ depending on what they prefer when it filing their taxes as both forms are the ones used to reports any profits and losses that the business makes at the end of the day.

There are also different guides for different kinds of business owners that people should familiarize with and use as well. For corporations, they also have several options that they have to choose when filing returns as well.

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