Our experience in tax services Orlando has shown that most of the time If you have just started your business, chances are that you are probably doing your own taxes, and tax planning Orlando with whatever little help you can get from your Orlando bookkeeper, accounting software, or tax accountant Orlando. While paying taxes should be your top priority, tax planning is also vital as it can have significant impact on your earnings and profit.
As a new startup, you might not be able to afford a tax accountant Orlando or tax attorney to provide you with such tax services Orlando. Here are few tips that can help you gain a better idea to plan for your taxes and the future of your business by using professional tax services Orlando.
- Analyze You Business Structure:
Our tax service Orlando experts know that while incorporating, perhaps the most important business decision that you have to make is regarding the business structure of your organization. A business structure determines the limitations and liabilities of your organization. Some of the common business structures are:
- Single Proprietorship
- Family Business
A business structure determines the liability of your business and the taxes that shall be liable on you. It also determines the level of protection that you receive from IRS and the severity of the liability that you will have to incur incase the corporation fails.
- Tax Planning.
Tax services Orlando professionals suggest that a tax plan is important for a new startup as it determines the profitability level of your business. Also it is important that you stay abreast to your taxes and pay them on time as failure to do so will create a bad impression on your potential investors and the IRS. To avoid rushing through deadlines, have your tax plan compiled by end of December as the filing date closes on April 15th.
- Equipment Purchases.
In case you are a manufacturing entity, you will require equipment to start your business. These purchases are usually capital intensive and require a huge amount of cash flow. Even if you are planning to lease the equipments, you will need considerable amount of cash to make the down payment. To avoid any deficit in the future, it is best that you plan ahead such purchases and apply for any deductions and tax credits.
- Speed Up Collections.
Most tax services Orlando experts will tell you that collections are the amount that your customers owe you. As a new entity, you should follow an aggressive collection policy. Also keep in mind that any extra income that you have before Dec 31st shall be taxable. In such case, you can ask your customers to pay at a later date.
- Estimated Tax Payments.
Accelerate your payments as making payments will entitle you to certain deductions. Any payment that you make is classified as a business expense. You can claim itemized reduction on such payments by paying them before December 31st. If you are able to, you can also pay your taxes in early quarter as paying early taxes can also make you eligible for deductions and credits.
Tax Planning can be a daunting task and often involves careful examination of various aspects of your business. It is therefore recommended that you consult a tax attorney before making any grave decisions.
If you need more information about our, Orlando accounting and tax services, please contact us at 407-502-2400. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.