Small business owners need to be aware of their tax liabilities so that they can stay on top of their financial obligations. Follow our 2023 tax checklist below which includes important deadlines and requirements you should be aware of.
☐ Organize your records
Keep a record of all your financial transactions and records, including receipts, invoices, bank statements and other documents that are relevant to your finances throughout the year.
☐ Determine your business structure
Your business entity type (sole proprietorship, partnership, limited liability company, corporation, etc.) affects your tax obligations. It is important to ensure you understand the tax implications of your business structure prior to starting your business. Read our simple small business guides on US business structures and Australian business structures.
☐ Pay quarterly estimated taxes
You will need to make estimated tax payments every three months if you are expecting to owe more than $1,000 in taxes for the year. You have until April 15, June 15, September 15, and January 15 to make these payments. You have to make quarterly tax payments by these deadlines.
☐ File your annual tax return
You need to file your annual tax return by the 15th of March if you’re a partnership or S corporation, and by the 15th of April if you’re a sole proprietor, LLC, or C corporation. Before you file your application, make sure that you have all the necessary forms and documentation with you.
☐ Issue 1099s
It is necessary that you issue 1099 forms by the 31st of January to anybody who has paid you more than $600 for services or rent.
☐ Stay up-to-date on tax law changes
Every year, new tax laws and regulations are introduced. It’s important to stay up-to-date with any changes that may affect your business.
☐ Keep accurate payroll records
You must keep accurate records of your employees’ payroll, including W-2s and 941 forms for your employees.
☐ Claim tax deductions
It is important that you take advantage of any tax deductions that may apply to your business. This includes deductions for expenses incurred for traveling for business, and deductions for equipment purchases.
☐ Get help from an accounting professional
Consider hiring a tax professional to guide you through the complexities of small business taxes. Getting help from an accountant can help you take full advantage of any tax deductions and credits available to you.
Ensure that your small business stays on solid financial footing in 2023 and beyond with our above checklist. Organizing your invoices helps you keep on top of your tax obligations. Try Bookipi’s invoice maker and organizer for free today.
