Business owners, does this happen to you.....?

Question

Every time I go make a deposit at the bank I can't stop thinking about all the money i will owe in taxes next year. This honestly worries me although I am very happy that business is going well. I don't pay taxes every three months because I didn't expect business to go so well, but thats definately what I'm doing next year. I was just wondering if there's anyone out there that feels like me.

My CPA takes care of everything, but somethings are just un-avoidable

Answer 1

I know exactly how you feel and it's depressing to even think about it.

Open a second bank account (a high interest one) and put money away to cover the tax bill when it arrives. Forget that the money in that account is yours then it's not quite so hard to part with it when the time comes.

Answer 2

Of course business owners feel that way. Did you know that there is a form from the IRS that you can estimate your tax payments as you go and pay if you like. This might give you some piece of mind. Also remember that you pay 15% instead of 7 1/2 % because you have to match your own withholdings plus federal income tax. Open a small savings account and set aside money for the tax season. If worst comes to worst you can always pay your tax liabilty out through a payment plan with the IRS. Go to their website they have all kinds of good info. A good accountant or CPA although expensive will save you lots of money in the longrun too.

Answer 3

I'm no fan of having to write out those quarterly estimate checks, but if you don't you WILL be hit with some significant fines and penalties when you do file your taxes. Your CPA has certainly advised you of this and that taxes are due when the money is earned, not on April 15th of the next year. If he or she hasn't advised you of this, get a new CPA; that one is incompetent!

And if it's your payroll taxes that you're not depositing, it won't be long before the IRS padlocks your business, freezes your bank accounts, and slaps a tax lien on your home. Slow-leaking on your personal income taxes is bad, but the IRS gets downright vicious when it comes to payroll taxes because THAT affects your employees as well.

Answer 4

If you are an upstarting company, small, without many resources, it is best to purchase a lot of things with money earned. In other words, buy that fax machine and office space you need (but do not purchase personal items!). You can expense these work related things on your taxes as company loss and you will end up paying less taxes, although you will have in a way invested in your company through getting materials you need to work more productively. You can thus earn more profit through working more productively and when you earn more, taxes become less of a problem. I hope this helps.

Answer 5

Well there will be more tax to pay the more you lodge but it also means that the business is doing really well so congratulations. There is no escaping the taxes so paying in 3 monthly increments sounds like a great idea

Answer 6

I have a business but I specifically do not pay the taxes, because the business is not in my name. I have nothing to stress about there. my accountant however has somebody that worked for the IRS as an employee...so there are ways to get around things and get bigger returns.

Answer 7

No, because I always work closely with my CPA, to insure that I don't make FATAL mistakes.

Answer 8

Just drop some ES payments in the mail......

Answer 9

Yes, I do. I hate taxes.

Answer 10

i used to own a buissnes and i felt the same way