Small Business Tax Cheat Sheet from the IRS
For small businesses, taxes are a substantial issue. Over 50% of Schedule C profit can be payable to the IRS in income and self-employment taxes. Self-employment tax is now 15.3%, and the highest tax bracket is 39.6%. It is important, as a small business owner, to learn all you can about tax law in order to save your capital.
Though you may choose to get assistance with tax code and tax strategy from a tax professional, be sure to take advantage of the resources made available by the IRS. One of the best resources is the Small-Business & Self Employed Tax-Center.
Tips and resources provided by the IRS include:
- A-Z Index. Business owners can look up any topic on taxes using this index. There are broad overviews on each area of tax law specific to sole proprietorships, corporations, LLCs, partnerships, etc. The index is searchable by letter, business type, and subject..
- Forms and Publications. The Small-Business Forms and Publications center allows individuals to look up specific topics. The center includes information on payroll taxes and income tax law. All necessary forms can also be downloaded from this webpage.
- EIN. If you are not sure if you need an Employer ID Number, you can find out on the EIN site. The application form is also available.
- Education. The IRS offers tax workshops and webinars at its Business Tax Workshops and Webinars site. Workshops are listed by state. They cover a variety of topics from recordkeeping to retirement plans.
- Video Portal. For people who prefer video to reading or listening, look for IRS Videos. The same information is presented in a user-friendly way.
- e-News. Individuals can sign up for bi-weekly tax newsletters for business owners through an email subscription. The newsletters include information on tax law changes and current tax law explanations specific to small businesses.
- Payroll and Contract Workers. The Independent Contractor or Employee? Section covers how the IRS helps business owners to understand how payroll works, and whether a worker is classified as an employee or independent contractor.
In addition to IRS resources, the Small Business Administration makes services and workshops available to small business owners. To learn more, subscribe to their mailing list.
Even with the wealth of resources and services offered by the IRS and other entities for small business owners, tax law is complex and can be difficult to navigate. It is advisable to utilize the services of a qualified tax professional to ensure you are clear on the laws, how they apply to you and your business, and what you need to meet the requirements.
The information contained on this website does not constitute legal advice or tax advice. The information contained within this website is provided for informational purposes only and is not intended to substitute for obtaining accounting, tax, or financial advice from a professional tax planner or attorney. Its authors make no claims about its accuracy, completeness, or up-to-date character and that applies to any site linked to this website as well. No author or owner of this website is acting as your attorney. Legal rules and tax rules change frequently, therefore, we cannot guarantee that any information on this web site is accurate or up to date.