Question by khalefa_o: how often does a small business file taxes, and what can we write off.?
I own a small business in Maryland, Hyattsville 20781. We’ve only benn open since the 1st of the year.
Best answer:
Answer by New Yorker
well you have to keep in mind there are several different taxes that you need to file.
When you withold income tax from your employees you need to pay that, you also need to pay unemployment tax, social security and a bunch of other deductions that you as the employer must match.
There is also Sales Tax
And then there is income tax on the business.
Each of them are different and partially depend on the area as to when you file. Sales tax has to do with your local county where you got your resellers permit. They should tell you when you need to file. If you don’t file when they want you to, you could be in big trouble. As for income taxes you file those with the local, state and federal government.
At any rate, part of it has to do with how much you earn and what type of company you are, ie partnership, llc, scorp, ccorp, etc. But generally filing takes place each quarter, for jan, feb and march you would file in april. etc.
Good Luck
Know better? Leave your own answer in the comments!
You only file a return once a year, but you should probably make estimated tax payments every quarter. You can deduct, with certain limitations expenses that are “necessary and proper” for the production of income. However, some things, which will be used for a longer period of time must be capitalized and depreciated (you expense a portion of their value each year, rather than all at once).
It might be a good idea to talk to an accountant to set up a bookkeeping system to get you started. Or you could buy quickbooks, or a similar product to help keep track.
In any case, I’d recommend reading Pub. 334, “Tax Guide for Small Businesses” put out by the IRS. It has a lot of useful information about how to fill out your forms, making estimated payments, what can and can’t be deducted.