Let’s be honest, we all don't like having to paying taxes. It’s simply the burden of the beast. Let’s flip the scenario around and determine the benefit of a well prepared, no stone unturned business and personal tax return.
Learn to minimize your "taxable income".
In our opinion, a properly prepared and expense substantiated tax return is YOUR best friend. It’s not against the law to owe on back taxes, however it is against the law not to file a tax return. Taxpayer rights can only be implemented if the Taxpayer is in compliance.
DWK Tax Group will "recommend" various basic business practices for the general taxpaying public to review for reference. Since you are visiting this article now it may already be too late, the rethinking of approach may benefit you in the long run should new business protocol be incorporated today.
1) Obtain a DBA, Business License from the state and an Employer Identification Number (EIN) from the IRS.
2) Obtain QuickBooks as an accounting program as an expense log.
3) Understand what a Profit and Loss statement is. It will help give you the current health of a business operation at a quick glance.
4) Determine if you are a "personal service" company or "retail" or both.
5) Establish a vehicle mileage log book for all business miles vs. personal usage.
6) Set up 4 bank accounts; Business Checking, Business Savings, Personal Checking and Personal Savings to avoid commingling of funds.
7) Obtain debit cards for each checking account. Stay away from unnecessary credit card purchases, it will only accrue additional debt.
8) Use the business debit card for all "business" expenses, including gas consumption, vehicle repairs, maintenance, office expenses, office equipment, taxes and licenses, etc. Your bank statement will serve as the reference for tractable expenses.
9) Operate as a sole proprietor first, make money first, prior to considering a C or S corporation or Partnership structure.
As you can see, DWK Tax Group exemplifies the fact that we come from the place of helping the general public. Collectively we are in the trenches everyday digging Taxpayers out of deep IRS or State Taxing Authority back tax holes on a daily basis.
We are making a positive difference on people's lives no matter which way you spin it.
Looking for some "positive"? Dial 1 - 8 6 6 - 2 2 6 - 6 1 0 2 for a 20 minute detailed analysis of your scenario. It may be the most important phone call you make in this lifetime. DWK Tax does not accept all cases, however, if do? We will identify the tax problem, isolate it and apply the most equitable solution allow by Federal and State Tax laws. Most importantly...Fast.
If at all possible try to remain optimistic about your future, hope is the driving force that keeps all us motivated to take on challenges such as owning your own business or income stemming from issued 1099s'.
Thank you for your time in advance...