Tax season is approaching quickly. Wise business owners need to begin preparing for their tax filing now to ensure that all details are managed. Whether your business is a film company, a plumbing company, a boutique, or anything in between, making strategic, timely, and informed decisions regarding your tax returns will benefit you. At Fricke & Associates, LLC, we specialize in helping businesses with their tax returns, including helping minimize tax liability through strategic planning and entity selection.
- Seek Guidance on Entity Selection—With
our vast experience helping businesses in a variety of industries, we can help
you find the most suitable entity choice. Entity selection is not a
one-size-fits-all process so we will help you determine the direction which
will be most beneficial to your business. From small businesses filing as a
sole proprietorship to film companies filing as S corporations, our
professional staff will ensure that all aspects of your tax filing are
completed appropriately so you can focus on your important work. Once your
entity selection has been made, we can guide you to the right forms and
schedules to follow. - Determine Your Deadline—The entity you
have selected will decide which deadline you have to meet. The following
entities follow the traditional personal return due date of April 15th:
LLC (single member), LLC (multiple members) taxed as a corporation,
corporations which end their tax year on December 31st, and sole
proprietorships. If your company files as an S Corp, partnership, or LLC
(multiple member), you must file by March 15th. When either
of the filing dates fall on a weekend or holiday, you have until the next
business day. - Get All of Your Documentation Together and
Organized—March and April may seem like they are still far off but getting all
your tax return information together is not an overnight process by any means.
Regardless of the size of your business, you will have many records and
documents to locate before you are ready to file. You must locate all your
income and expense records because you must use actual numbers and not your
best guess on your return. Accuracy is very important to the IRS. Your income
statements and balance sheets are crucial reports to use for filing your tax
return. These reports will show important financial information, including your
assets, liabilities, equity, income, and expenses. Supporting documentation is
vital as well so collect your receipts, bank statements, credit card
statements, and payroll records. Having documentation from previous filings and
tax payments could be helpful as well. Lastly, make sure that you know your
taxpayer identification number. - Explore Possible Deductions and Credits—Credits
and deductions are essential to minimize your tax liability. A few general
credits to explore could be disabled access, small employer health insurance,
and work opportunity. For the film industry, the State of Georgia offers a Film
Tax Incentive for qualifying film companies. In terms of deductions, you may be
able to claim a deduction for your travel expenses, home office, business use
of your car, debt, and charity contributions. When Fricke & Associates, LLC helps with your return, we can help you find the best opportunities to
reduce your tax liability through credits and deductions. - Avoid Overpaying—Business owners who paid
estimated tax payments need to deduct them from their overall tax liability. - File an Extension if You Need It—Filing
for an extension is always a better choice than filing a sloppy or inaccurate
tax return. If you already realize that having your documentation together by
March or April will be unlikely, ask for assistance to file for your extension. - Be Prepared if You Cannot Afford Your Tax
Liability—The IRS offers a few solutions for business owners who are unable
to pay their tax liability in full by the filing date. Explore an IRS
installment agreement, offer in compromise, or temporary delay. The team at
Fricke & Associates, LLC can support you in determining the best course of
action for your business. Even if you cannot pay your full amount by the filing
date, you must already have a plan in place by that date for how you plan to
pay it. - Schedule a Visit with Fricke & Associates,
P.C.—Once all your documentation has been gathered, we can review your
records and return to ensure that you have minimized your tax liability. Our
team will make sure that your return is accurate and thorough. - File that Return—You have the choice of
filing electronically or by mail. Advantages of e-filing include the quick
confirmation you receive and a more prompt refund. With an electronic filing,
you can also make your tax payment using the Electronic Federal Tax Payment
System provided by the IRS.
March 15th and April 15th will arrive quickly so start preparing right now. Contact Fricke & Associates, LLC to get started today!