If you’re a small business owner, tax season is an important and busy time of year. Whether you’re a new or experienced entrepreneur, you’ll likely have questions regarding the business tax preparation process. Here are a few things you should ask your accountant when you schedule an appointment.
Can I Deduct Business Expenses?
Most business owners can deduct portions of their rent or mortgage costs, vehicle expenses, equipment purchases, and other expenses from their taxes. This can reduce the amount you owe and increase the amount of your tax refund. Your CPA will help you identify qualified expenses so you get the most out of your tax return.
I Work From Home. Can I Still Deduct Business Expenses?
If you work out of a home office, you can still deduct some of your business expenses from your taxes. While you may not be able to deduct as much from your taxes as a business owner with a separate office space, you can subtract a portion of your rent or mortgage, utility costs, and other similar expenses.
Do I Have to Withhold Taxes for My Employees?
If you hired your employees as independent contractors, they’re responsible for setting aside money for their taxes. However, if you hired them as full employees, you’ll be expected to pay a portion of your staff’s income taxes. Work with your CPA as you hire your staff to ensure everything is in order.
Will My Company’s Legal Status Impact My Return?
Every company’s taxes will be different based on their business structure, profits, losses, and overall expenses. However, your legal status, whether you operate as a sole proprietor or a limited liability corporation, will affect your tax liability. Your accountant will help you understand your company’s unique tax situation.
Let RKB Accounting & Tax Service help you with your business tax preparation and take the stress out of the season. The La Crosse, WI, company has more than two decades of experience and is knowledgeable on all tax laws at the local and federal level. Visit their website to learn more, and call (608) 782-6433 to schedule an appointment today.