Tax Tips for Ohio Businesses

Posted by Matt Simon on Apr 23, 2010

It's tax time!

Of course, as a business owner you may have a different deadline than April 15th.  In fact, you may have several important dates throughout the year...

Either way, this article is here to help you with several small business tax tips!

First, you can make next year's taxes easier by keeping all of your receipts. Many people consider this a major hassle but even just having a big box where you throw in receipts each day will do...

Better still, use any of the popular software programs to track and categorize your purchases and deposits through a bank account dedicated to business. If you run all of your income and expenses through one bank account, at the end of the year you will have a complete tax record ready to use.

Another tip is that since you own the business, you need to do the withholding manually for tax purposes. The IRS divides your annual income into quarters and expects that you pay taxes on this income at least 4 times per year....

You can e-file to do this, use a mailer, or even use a wire straight from your bank (EFT) if a deadline is quickly approaching....

Now that this tax year is in the books, you might consider setting up a retirement plan for you and your employees for next year. The type of plan will depend on the number of employees you have but here is a quick idea of the choices:

  1. IRA/SEP: Ideal if you are self-employed and have no employees. Higher limits and no extra tax filing.
  2. SIMPLE: A small business 401(k) that is sponsored by either a brokerage or mutual fund company. Entails lower limits, costs and matching than a full-fledged 401(k).
  3. 401(k): The best choice for companies with many employees. You can exclude many hourly employees or short-timers to make it advantageous for you.

Not only do these plans provide a tax deducting advantage, they help attract and retain quality employees!

With these tips and your expertise at work, all of us here at Hill & Hamilton wish you a very profitable year.

 

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