Tax information for Maryland business owners

If someone is opening a new business, it is important that they are proactive about how they deal with taxes. Proper business tax planning can help prevent entrepreneurs from running into legal problems as well as help them estimate their business costs related to taxes. Planning should include selecting the most appropriate business structure, keeping track of tax-related documents and taking advantage of tax credits.

The most common business structures are sole proprietorships, partnerships, LLCs and Subchapter C or S corporation. Each has different pros and cons, and the type of structure someone chooses for their business will also determine how they are taxed. Along with selecting the right structure, it is critical that individuals keep track of their accounting and any receipts that may be needed for tax purposes. Failing to do so may lead to problems filing and the possibility of an audit.

There are a variety of taxes that each business must pay, and these obligations can feel overwhelming to some new business owners. One way to keep taxes under control is to look for and take advantage of tax credits. For example, the Small Business Health Care Tax Credit provides a credit that covers up to 50 percent of premiums paid.

Taxes can have a huge impact on a business. If they are not paid correctly or on time, organizations can quickly run into legal problems as well as increased costs. A business and commercial law attorney may be able to help business owners understand what taxes are owed as well as the time frames required for payment. When a business is already having trouble with its taxes, a lawyer may be able to aid in resolving whatever issues the organization is facing.

Source: FOX Business, “10 Tax Tips for New Business Owners“, Bonnie Lee, August 01, 2014

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