1 min read
All businesses must pay taxes, and this includes brand new ones. Understanding and adequately preparing for the financial responsibility your company is subject to will save you a lot of time down the line.
One thing that is very important to keep in mind is that even if your business is not yet profitable, you still must file taxes; both federal and state returns. And since you are required to do so, you need to make sure you are recording everything correctly so that your business doesn’t suffer from expensive mistakes in the future.
Here are some useful things to keep in mind when it comes to your taxes:
- Your profit and loss statement will be used to calculate the taxes you will owe
- You can carry forward losses from one year to the next
- It’s important to document all income and expenses properly
- Understanding tax credits and write-offs is crucial
- If you are running profits, an accountant can help you set up quarterly tax payments
When just beginning your business, it’s not a bad idea to hire a tax professional to help you with your financial documents and in preparing your taxes.
A professional can quickly and accurately help you navigate any unfamiliar territory.
Read more: https://tencapital.group/education/
Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group