Frequently Asked Questions About Business Taxes

Starting a new enterprise can be exciting as you finally get to do something that you really love. In addition, as the boss, you can make all the crucial decisions and get to keep the lion’s share of the profits after paying your taxes to the IRS.

However, when it comes to business taxes, there are many questions entrepreneurs have but often find answers difficult to come by. Therefore, Michael J. Berger and Co., CPA’s LLP, wants to arm you with the most accurate information available to help you make informed decisions. To do this, we’ve answered some of the most frequently asked questions about business taxes.

1. What can I deduct?
You can claim any necessary expenses for your business, including insurance, office rent, taxes, and employees’ pay.

2. When do I report income?
For cash basis accounting, it’s reported when you receive the money, and for accrual basis accounting, it’s disclosed when you get billed.

3. Can I deduct my car and expenses?
Yes, if you’ve used it in the course of business, you can depreciate the business portion of the car and the business portion of the expenses based on the actual mileage.

4. When do I have to file my tax returns?
For your business, within two and half months after the end of the tax year, your business taxes must be filed. For personal tax returns within three and a half months after the closing of the tax year. But, six-month extensions are easily granted.

5. Should I be a C Corp, S Corp, Partnership, or LLC?
It’s too complicated to answer here, as there are many factors involved. Call us to get the best answer for your particular circumstances.

6. Are accounting and tax preparation fees expensive?
Fees are not relative to other business expenses. Contact us to find out more.

If you have any other tax-related questions, get in touch with the experts at Michael J. Berger and Co., CPA’s LLP. As the best full-service accounting firm in Long Island, NY, we render personalized accounting services to small and medium-sized businesses. Our certified public accountants and enrolled agents are committed to helping you with all of your financial needs and can make quick decisions to respond to your requirements efficiently. Our specialties include estate planning, auditing services, tax planning, IRS representation, and accounting services. We serve clients across the New York counties of Brooklyn, Queens, Staten Island, Westchester County, and the surrounding areas. We also cover Florida, Georgia, Pennsylvania, New Jersey, Colorado, and Virginia.

To learn more about how we can help you, please click here or contact us by clicking here.