Tax Questions Every Small Business Owners Are Asking in Tax Season


Are you a small business owner? As the taxation season is approaching, you must feel overburdened by the work! If yes, it is a sign that you must start looking for the best CPA offering Brunswick, OH tax preparation services. Hiring the best tax preparer is not that easy as several complexities are involved. It is better to ask small business owners questions during the tax season. This article highlights questions to ask your tax preparer. Here we go! 

Questions small business owners ask in the tax season 

1. What are potential business expenses that I can deduct? 

Small business owners always look for ways to reduce their expenses for lower taxes. However, particular deductions vary based on factors like common deductible expenses, business type and industry, and more. Some common deductible expenses are: 

  • Rent or mortgage payments for business premises
  • Utilities
  • Supplies
  • Equipment purchases
  • Advertising costs 
  • Employee wages
  • Business-related travel expenses. 

When meeting your tax preparer, ask them about all potential business expenses. 

2. How can I handle employee taxes? 

Managing payroll taxes and remaining compliant with taxation laws is complex for small business owners. Therefore, fulfilling duties is crucial. These include: 

  • Income tax withholding
  • Social Security  
  • Medicare payments
  • Payroll tax return filing 

You can expedite the process and help prevent costly errors by using payroll software or outsourcing payroll services.

3. List of different forms should I file  

The company’s legal structure determines which tax forms need to be filed. Schedule C of a personal tax return (Form 1040) is where sole owners usually disclose company income and costs; corporations, LLCs, and partnerships have distinct filing requirements. Speaking with a tax expert can help to ensure that reporting requirements are met and to explain filing obligations. 

4. How do you plan estimated taxes? 

Small business owners should have anticipated tax payments throughout the year to avoid underpayment penalties. Projecting yearly income, deductions, and tax obligations is necessary to calculate estimated taxes. Quarterly payments to the IRS and state tax authorities are also required. Effective budgeting for projected tax payments can be facilitated for business owners by keeping correct financial records and closely observing cash flow.

Wrapping up 

Handling the intricacies of small business taxes necessitates meticulous preparation, close attention to detail, and occasionally professional advice. Small business owners can optimize their financial outcomes and assure compliance with tax rules by addressing frequent tax problems and requesting guidance when necessary.