BUSINESS TAXES

Jun 1st 2020

THE IMPORTANCE OF CORRECTLY FILING BUSINESS TAXES

The US system has been strategically designed to promote business growth. Tax laws and guidelines are intended to ensure that businesses that earn a lot of money pay more in taxes and businesses that earn less pay less. But even more important than the logic behind taxes, whether we like it or not, regardless of the reason, every individual and every business is obligated to file a tax return. Failure to file a tax return or pay taxes can result in fines, prison time or both.

TAX EVASION WILL STUNT YOUR GROWTH!

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An open secret: many small businesses do everything they can to save money on taxes, even if it means changing, omitting or concealing certain information. I know this isn’t what you want to hear, but it’s the truth. More people do it more often than you might think.

LET’S START WITH SOME VERY IMPORTANT ASSERTIONS:

  1. IT’S MANDATORY TO REPORT BUSINESS INCOME TO THE GOVERNMENT AND PAY TAXES ON IT.
  2. MANY SMALL BUSINESSES TRY TO SAVE MONEY ON TAXES IN WAYS THEY SHOULDN’T.
  3. CORPORATE TAX RETURNS ARE AN ESSENTIAL FACTOR FOR THE GROWTH OF A BUSINESS.

AN OBLIGATION AND A STEP FORWARD

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Correctly filing your company taxes is a vital part of ensuring the growth of your business. In the first place, if you’re a business owner, you’re obligated to file corporate and personal income taxes. By doing so, you’ll know you’re compliant with government regulations so you can rest easy. The last thing you want is to be audited and for the government to find out that you owe them thousands of dollars. In the second place, if you need to grow or expand your business, banks and other lenders will generally request copies of your federal tax returns to verify your business income and ensure that you’re current on your taxes. If you don’t have your tax returns or if they weren’t filed correctly, there’s no doubt that your loan application will be denied.

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