You know the old saying—death and taxes, yadda yadda yadda. The truth is, getting your business taxes done right and on time doesn’t have to be such a morbid concept. Actually, after reading this article, preparing your business to take on the 2018 tax season like the boss you are should seem like a pretty simple and straightforward process.
Still, when you’re planning out how you’re going to tackle getting your taxes done it’s vital to consider all your options to ensure you save as much time and money as possible, and reap all the new benefits small business owners are enjoying from Trump’s new tax codes (while avoiding all its flaws). For example, have you asked yourself these questions?
Without further ado, let’s get right to it—here’s everything you need to know before the 2018 business tax season:
Original Deadlines: Partnerships and S Corporations March 15, 2018 C corporations and individuals April 17, 2018 Exempt organizations May 15, 2018 | Final Deadlines (with extension): Partnerships and S Corporations September 17, 2018 C corporations and individuals October 15, 2018 Exempt organizations August 15, 2018 |
Alright, now let’s get to the big stuff.
For Partnerships, S Corporations, and C Corporations that would still like an extension, you can request a 6-month extension through a Form 7004. Exempt organizations, such as nonprofits and charities, must complete a 8868 form to request a 3-month extension.
Notice how I didn’t put in any links to those forms up there—it’s on purpose. I want you to keep reading, because a lot of the time, getting an extension can wind up hurting more than helping small business owners.
The mere thought of getting an extension on paying business taxes hits small business owners like a shot of adrenaline straight to the heart. They hear the possibility of pushing off a tax deadline, and all of a sudden it’s the only solution to all of their financial problems. However, extensions, like spikes of adrenaline, are incredibly short-term solutions to a bigger long-term problem, and can be extremely dangerous if done wrong. If the extra time can help you gather all of the documentation and prepare without making mistakes, consider this extension as a life raft until you get your financials in order. Notice how I used the term “life raft”, not “luxury yacht.” There’s a huge difference. You could suffer from hefty penalties and interest on taxes due to miscalculation or errors from being in a rush.
However, if luxury yachts are your thing, I recommend you consider the benefits of getting your hands on small business loans with amounts and terms that can completely cover your business tax payments this year. Use a small business loan to pay off your taxes, and then pay them off on your own terms. Instead of freaking out over paying a huge sum of money in a matter of days, use small business loans to pay off your business taxes on your own terms. Pay them when you want, and how you want. Who knows, you might just save up enough capital to get that yacht mentioned earlier, or anything else for that matter—anything but a life raft.
Under the new tax revisions, C corporations will now have the lowest tax rate at 21%. Business owners are now considering converting to a “C” legal structure to leverage the lower rate. The process is easy to convert and can be done in less than a week.
Converting to a C corporation is dependent on the company’s profit, though owners need to ALSO acknowledge that there may be a double taxation element at the corporate and personal level. Consult with one of National’s Business Financing Advisors before making the final decision—they’ve got years of professional wisdom in the world of business financing to share!
Check these out to make sure you’re getting all the benefits you and your company deserves before tax season!
I know, I know. Now we’re getting real technical. Stick it out like the boss you are, and learn how to conquer these business tax challenges like I know you can. Sound good?
Overwhelmed? Don’t be. National Business Capital & Services has a ton of great small business financing options that are saving small business owners time, energy and resources that would otherwise be wasted this 2018 tax season.
I know, this is a lot to take in. If you’re sick of reading, call (877) 482-3008 to speak with an expert representative, and we’ll help you out with good ol’ one-on-one chat. However (Spoiler Alert) you’re so close to the best part!
Either way, consider these 4 important points before making your kick-butt plan for business tax season:
Give National Business Capital & Services’ Business Financing Advisors a call at (877) 482-3008 to get all the help and advice you’ll need with doing your business taxes before the summer comes to a close. Or if you’d like, apply for a small business loan to help you out right away by filling out our 1-minute, 1-page application, and get funded in as little as 24 hours!
____________________________________________________________________________
Sources:
https://www.forbes.com/sites/anthonynitti/2018/02/06/tax-geek-tuesday-how-does-the-new-limitation-on-deducting-business-interest-expense-work/#3d8bd32c7abb
https://blog.indinero.com/2018-business-tax-deadlines
https://www.nextiva.com/blog/how-small-business-taxes-are-changing-in-2018.html
https://www.northwesternmutual.com/life-and-money/tax-law-changes-that-will-impact-business-owners-in-2018/
https://www.valuewalk.com/2018/04/guide-business-taxes-2018/
__________________________________________________________________________
National Business Capital & Services is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.
Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.
We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!
Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.