As anyone who has started a small business will tell you, it can be overwhelming. You have so much to deal with, from finding a location for your business to hiring employees to building a client base. However, one important aspect that new business owners may fail to account for is how to pay taxes on a small business.
How Do Taxes Work for Small Businesses?
Entrepreneur did an article with financial expert Dave Ramsey recently. We have featured tips from the piece in our blog, including blogs about whether it is a good idea to take out a loan to start a small business or get a business credit card. This week, we are focusing on Ramsey’s advice about how entrepreneurs should deal with paying taxes on their small business.
According to Dave Ramsey, small business owners should make sure to estimate their tax payments and include them in their budget. This can be done in addition to having a CPA prepare a profit and loss statement for your business. When creating your small business’s budget, there is no specific tool that Dave Ramsey recommends. You should use whatever accounting software you feel most comfortable using to create your budget and estimate your tax payments.
In the video below, experienced business attorney Gary Mason discusses why having a business lawyer handle aspects of your business, such as tax payments, can help you avoid making mistakes that can cripple your business financially.