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Tips and Guidelines on How to File Business Returns
There is a possibility that corporate tax will be worth more than $250 million by the 2020 financial year which requires every business operating in the modern business market to keep filing their taxes as they are obligated by the law. The only bad thing is that most people view the process if filing taxes as demanding and overwhelming in them which at the end of the day compromises the results and outcome of the entire process. There is no need to keep holding on the though like most people when it comes to filing taxes and in the end fall into trouble as it is often the case. This article is meant to help anyone planning to file their business taxes soon to encounter little or no challenges as well as pressure during the entire process and have the least hectic process at the end of the day by doing everything timely and right as well.

There is a group of business owners that are known as sole proprietors which means that they own and run the business alone with no one else and it is the simplest kind of business structure in the market today. Since the business is simple with just one owner and manager, filing its returns is also simple as well. One great thing about sole proprietorship is that it is not just simple but also cost effective as it only requires one to pay the del-employed taxes and they are good to go with no any kind of taxes on behalf of the enterprise. Filing self-employment tax comes top of the income tax that one has to file under sole proprietorship and the former for the first timers, refers to both Medicare and Social Security taxes. Sole proprietorship requires the business owner to pay their taxes after every three months and also file their returns accordingly as well which explains why taking their time to familiarize with the approximated tax is essential. It is the same technique that most business owners use to pay to pay Medicare and social security as well as their employees’ income tax and the most reliable way of determining how much one needs to pay in self-employment taxes is using the form1040-ES which deals with estimated tax for individuals. Most excitingly, sole proprietorship also allows one to choose between Schedule C and C-EZ depending on what they prefer when it filing their taxes as both forms are the ones used to reports any profits and losses that the business makes at the end of the day.

There is also another guide for other business structures such as partnerships and corporations as well. Under corporations, for instance, there are S and C corporations which have similar tax burdens and people should learn more on the same as well.