The organizational structure of a C corp consists of shareholders, a board of governors, officers, directors, and employees. Traditional corporations are C corporations (C corps). Many business owners don’t even know corporate income tax rates, business tax deductions, or what tax cuts they’re eligible for.Įvery small business owner should understand these five important things that can affect the business’s income taxes and overall tax situation. ESTIMATED TAXES FOR SMALL BUSINESS LLC FULLWith the Tax Cuts and Jobs Act in full effect, many small business owners are unsure how the new tax law will impact their tax bill. The formation stage is vital to maximizing deductions and minimizing your tax liabilities for the future. To avoid wasting time, money, and resources, pay attention to your potential tax burden when forming your business. The study also cited that 70% of small businesses employ tax professionals for tax preparation and to represent their interests before the IRS. This is the equivalent of 1.25 million full-time jobs. The National Taxpayer Advocate estimates small businesses spend approximately 2.5 billion hours each year preparing tax returns or responding to IRS inquiries about their returns. However, recent reports have cited that the IRS has increasingly targeted small businesses for tax audits. As a small business owner, you may assume the IRS has bigger fish to fry than your small business operations.
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