After putting in the time, money, and hard work to launch a new business, most entrepreneurs quickly realize that aren’t enough hours in the day to get everything done. One pressing—and sometimes stressful—task is filing taxes for the first time. However, with some helpful tax preparation tips, the process doesn’t have to be intimidating. 

The Business Owner’s Guide to Filing Taxes for the First Time  

1. Learn Which Taxes Are Required

Federal and state tax agencies require small businesses to file certain taxes each year. These include payroll, sales, and income taxes. Payroll is especially important because failing to calculate the proper withholding taxes or pay on time can result in costly penalties. Companies with employees are also required to file withholdings each pay period. Among them, Social Security, federal, Medicare, federal unemployment and if applicable, state unemployment.

2. File Based on Your Company’s Structure

When a business files the necessary paperwork to become a legal entity, they are required to select one of five operating structures: sole proprietorship, limited liability company, partnership, S corporation, or C corporation. Each structure has different tax forms and deadlines. To ensure you’re getting the best possible benefits from your company’s structure, look for a tax preparation expert who works with small businesses.

3. Always File 

The consequences of not filing a business tax return can be severe. If you fail to file, the IRS can give you a 5% penalty on any taxes owed each month. The penalty can be as high as 25%. In addition, if taxes are owed but aren’t paid, a 0.5%  penalty can be levied. The fines will quickly add up if you fail to comply. State tax authorities are able to assess similar penalties. Filers who repeatedly fail to file or pay taxes owed, can also have their bank accounts or other assets seized to meet the financial obligation.

Filing taxes should be a top priority. When you need a tax preparation specialist, contact ZP Tax in Montgomery County, MD. They are the agency entrepreneurs continue to turn to for reliable and comprehensive tax preparation services. Their team has extensive experience working with a wide range of industries. If you’re a small business owner filing tax returns for the first time, give the firm a call at (301) 587-4829 for expert guidance. Visit the website for information on their complete suite of services.