French Larry Taylor Discusses Steps for Managing Small Business’s Taxes. 1. Hire the Right Accountant French L. Taylor says that solo proprietors hire accounts to help them with tax filing and payments according to the IRS standards. He adds that accountants play a critical role, including lessening business owners’ time to prepare taxes and income statements. Business owners can have more time to focus on other core management activities when they outsource accounting. Asset depreciation Estimated tax payments Income statements, etc. In addition, accountants ensure that your small business is successful over the long term.
Small businesses must see accountants as part and parcel of the company team. 2. According to French L. Number of employees Business structure Assets Location French Larry Taylor explains that a business’s structure influences the federal income tax type that it needs to file. Business assets, such as property, equipment, inventory, etc., also determine a business’s tax liability. 3. French Larry Taylor: Types of Small Business Taxes in the U.S. - Applied Business Forecasting. Income Tax French L. Taylor says there’s income tax that individuals pay on wages, income from property sales, investment income. On the other hand, a company pays tax on net income, which remains after subtracting expenses. Solo-owned businesses, LLCs, and other forms of ownership are pass-through entities. Flow-through or pass-through businesses pass their income on to the founder or owner. Because of this, the owner pays tax at their personal level on business earnings.
According to French Larry Taylor, the owner shows the business income when they submit their personal returns. Employment tax French Taylor notes that a small business must pay employment taxes or payroll taxes since they’ve got employees. French Taylor adds that a small business may outsource a payroll company to handle payroll tax liabilities, including filing tax forms. Self-Employment Tax Self-employed individuals also pay self-employment fees, such as social security and Medicare, French Larry Taylor says. Excise Tax.