Let's face the facts: taxes are a pain for everyone. They can be
difficult to file and a major drain on your finances - and as a business owner,
you know that taxes will only hit you five times harder.
That being said, your business taxes would be a lot easier to manage if you focused on tax planning. Not only does planning out your taxes help you organize your files, but they can help speed up the filing process and can even help reduce the amount of money that you will pay.

This article will help you to learn
some of the nuances of tax planning so your business can be ready for next
season. Keep reading to find out more!
1.
Ensure You Have a Proper Business Structure
The first step to planning out your
taxes is to make sure you're in the correct business structure. Whether you're
listed as a sole proprietor , an LLC, or a corporation, each fall under their
own categories and definitions, and will also have an effect on the amount that
you will pay in taxes. Ensuring that you have a proper business structure will
help streamline the process of filing your tax documents.
2.
Know Your Tax Bracket
One of the most important rules to
planning out your taxes is to know which bracket your business is in. Too
often, small businesses pay more than they should simply because they place
themselves in a higher tax bracket than their business is currently worth. Make
sure to do the research to learn your bracket so you can pay the amount in
taxes relative to your business size and value.
3.
Find Your Adjusted Gross Income
Your adjusted gross income, or AGI,
is probably the most important part of your taxes. Unlike your gross income,
your AGI is the part of your income that's actually taxable. This is basically
the amount that you would have after making adjustments for loans and other
payouts your business has had to handle throughout the fiscal year. Make sure
to find your AGI so you don't end up paying more than you actually owe.
Now that you know what to expect out
of your taxes, the next move is to start planning out your finances so that you
know you're fully prepared for tax season. Professional tax planners like the Avitus Group can help you keep a track of your company's financial
information so you know that every penny will count when doing your taxes!
Tax
Planning Has Been Made Easy
Now that you know the important
steps to tax planning, you'll be able to take care of your taxes for the
upcoming year without a problem. Make sure to take a look through the rest of
our site to see what other tips and tricks we have to offer you. You're going
to love what you find here!
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