By Jeiver Gonzalez
GNO Tax & Bookkeeping
Click aqui para español- >Tax tips marzo 2020
Did you know?...
As a business owner, pick the entity that’s right for you. For legal and tax purposes, you can structure your business in different ways, and choosing the right one can impact how you file and how much you owe at tax time.
Be consistent in your accounting methods. Even for an all-digital business, you’ll still need to keep records and account for your income and expenses. There are different types of accounting methods, but cash and accrual are the main two.
Be mindful of self-employment taxes. Depending on how you structure your business, you could be liable for self-employment taxes on your business income. Self-employment tax consists of Social Security and Medicare taxes, and it’s similar to the taxes employers withhold from their employees’ paychecks.
Know what tax breaks are available to you. The tax code offer s a number of tax credits for businesses, and you may be able to take advantage of some the first time you file your business taxes, provided you qualify. You can find a full list of business tax credits on the IRS website.