One of the most confusing aspects of starting a small business are the taxes involved. We get some expert help from Jamaal Solomon.
Small business taxes are one of those things best left to professionals, like surgery or dentistry. Sometimes the money you would save trying to DIY it is not worth the aggravation and resulting mess.
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So many acronyms, LLC, S Corp, C Corp. We just want to do things legally while paying the least amount of taxes possible. Small business taxes are not one size fits all. Each case has to be handled on an individual basis.
One piece of advice Jamaal has for everyone is not to wait until April 15th to see a tax consultant. That is a bad time to find out that you should have been setting aside money quarterly to pay the tax bill. And do everything like you’re going to be audited tomorrow. Sitting in front of an IRS agent is no time to realize that you played too fast and loose with the legalities. But remember, the difference between creative and legal is a fine distinction. And the more money your business makes, the more creative you can get.
Congress makes the tax laws, not the IRS.Tweet This
Put all of your business expenses on a company credit card, never pay cash. Cash transactions are almost impossible to back up during an audit and will set off all kinds of alarm bells with the auditor.
Small businesses are like snowflakes, no two are alike. That’s why it’s important to seek out a reliable tax professional to help walk you through the mine field.
The Tax Factor: Jamaal’s blog to help readers with small business taxes.
JS Tax Corp: Jamaal’s company to help small business owners prepare their taxes.
LMM Tool Box: Everything you need to manage your money.