It is never easy when you own a business, especially when tax time rolls around. The stress level can be high, so it is important that you always have a lot of great tips that you can keep in mind that will make the process a whole lot easier.
1. Understand The Forms
Believe it or not, a lot of businesses that are taking care of taxes on their own are not quite sure which form to use. If you are a partnership, you will need to report all of your income, losses and expenses using Form 1065. When you are a sole proprietor, you will need to use the Schedule C to list the business income and expenses that you have. If you have chosen to treat your business or LLC as a corporation, you will have to form a corporate tax return using Form 1120. The IRS has a list of forms here.
2. Deduction For Home Office
Smaller businesses may be intimidated while trying to file taxes, however you will see that there can be a lot of different deductions that you can take. As of 2013, you now have the ability to use a more simplified method for determining your home office deduction. In the past, you had to add up all of your costs and then multiply that number by the portion of your home that is used as office space. Now you have the ability to select a deduction for $5 on each square foot of office space, with a deduction cap of $1500.
3. Ask For More Time
A lot of people may not realize that they do have the ability to ask for an extension. Filing an extension will help you to make sure that your taxes are done correctly instead of simply rushing to make the deadline. It’s better to file late than never at all. Tax invasion is a federal offense and you can be arrested and put into jail. According to a bail bonds company in Toms River New Jersey, over 2,000 people a year get arrested for tax invasion!
Overall, you will see that as long as you take the time to research the deductions you can take and have all of the forms in order, filing taxes for your business should go smoothly. For more information you can watch this video:
Over the years, some big companies have grown and improved, while others have declared bankruptcy and even closed their doors. With the global economic crisis of the last few years, several huge companies have ended up in bankruptcy. In fact, of the 22 largest bankruptcies in history, eight occurred within the last three years. Some of the companies have survived and are still in business, but others no longer exist. There are many reasons why these companies declared bankruptcy, ranging from overambition expansion to criminal CEOs. What is interesting when one looks at the biggest bankruptcies is that the range of industries is very narrow. Most of the companies are from energy, finance, and auto manufacturing.
One of the most famous bankruptcies was Chrysler. In 2009, the automaker was ordered into bankruptcy by the President of the United States. Control of the company was turned over to the United Automobile Workers and both the U.S. government and Fiat remained minority stockholders. By 2011, Chrysler was once again profitable.
In later 2009, commercial lender CIT group filed Chapter 11 bankruptcy. They could not recover from an overreaching expansion. However, 38 days after filing bankruptcy, the Troubled Asset Relief Program (TARP) bailed them out.
In JulWorldCom, one of the largest telecommunication companies in the world was forced to declare bankruptcy when their CEO Bernie Ebbers was convicted of corporate fraud. The company was bought by Verizon in 2005.
When Lehman Brothers was forced to file for bankruptcy in September of 2008, it accelerated the financial meltdown that eventually resulted in a global economic crisis. The federal government decided not to help them and the company was eventually liquidated.
The demise of Lehman Brothers resulted in a failed financial institution domino effect that eventually saw the fall of Washington Mutual. The company was seized by regulators and it was bought by JPMorgan.
No matter how large a company is, it can still fail. Some recover while others close their doors. The bankruptcies of these large companies show the fragility of our economy.
One of the reason most businesses fail within the first three years of opening is due to the fact that they have disgruntled, angry, or just not well trained employees. Customer service is everything! But it’s more than that. In order to have a successful business, certain protocols and processes need to be set in place. This is the responsibility of upper management to make sure training is done thoroughly. Here’s a brief video on some techniques to train your employees: