Filing taxes for your business is part of what falls under starting new businesses. While taxes are no fun, keeping up with your taxes and tax paperwork will be one of the most important things that you will be doing as a business owner. Here is what you need to know before you begin filing for a business:
You Will Need an EIN: An EIN, or Employer Identification Number is essential a Tax ID for your business. Much like a social security number, an EIN will remain tied to your specific company, which is why it is very important to keep a record of your EIN and to keep that number secure. The good news about an EIN is that you will only need to complete a onetime application, and then just use that number to file your taxes every year
The Process Takes Time: The fastest way to obtain an EIN is to do so online- and this usually takes about a day. Mailing or faxing an application can generate a two to four week wait time before you even get the number. After your application is approved, you will need to give the IRS four or five weeks to catch up before you can file your taxes.
Figure Out Your Business Type: Not all businesses are the same in the eyes of the IRS. For instance, if you are starting an LLC, you will need to figure out how to file your taxes as the IRS gives some flexibility. Doing a bit of research in this case can actually save you money in taxes and is well worth the effort.
Filing for a business does not need to be complicated as there are plenty of resources that can help ensure that you do not make crucial errors. If you feel lost, getting help is highly recommended.