Making the decision to be a work at home mom is a big commitment and there's a lot to think about, including how to do your business taxes online. While you could simply hand your taxes over for someone else to do for you, it is cheaper to do them yourself, and when you find the right online tax program, it is fairly simple. The key is to stay organized and have your business structured correctly within the local state and federal tax law.
Correctly Structure and File Your Business
Before you can begin to think about filing your business taxes online, you need to be sure you have your business legally registered in the correct manner. Begin with a business name and structure. You can file and register your business name and apply for the appropriate business licenses and permits through your own local channels. Then you will need to determine your business structure (ie. LLC, corporation, etc) and apply for a Business Identification Number or Employer Identification Number (BIN or EIN) through the Internal Revenue Service.
Organize Your Business
After you have properly registered and structured your business legally, you will need to develop a comprehensive business organization system. This includes opening a business bank account and credit card and developing an accounting system that works for you. One of the most important things to keep in mind when you get ready to file your business taxes online is that your business expenses and your personal expenses must be kept separate. Even if the only method you have is a shoe box to keep your business receipts in, it's better than nothing.
Find an Online Tax Filing Program
The next step is to research which online tax program is best for you. There are good ones to choose from, including some that will assist you in filing your taxes for free if you fall within the gross income guidelines. Entering a Google search for free tax filing programs will produce a list for you.
Gather Your Information
Before you actually start the process of filing you business taxes online, you will need to gather all of your personal and business financial information together. This includes your monthly expense reports, all sources of income and your BIN or EIN. If you are working with a reputable online tax program, you will be guided through the process of filing your business and personal taxes correctly. Be sure to go back and correct any errors that the program identifies.
If you run into problems with the online tax program, there are several ways to handle it. You can contact the program via online assistance, through email contact or by phone. You can also contact small business associations to find free local tax help. You must file for an extension if you are not able to file your taxes by the deadline. Most online tax programs have an option to assist you with this step.
Finally, you can decide whether to complete the filing process through the online system or print the tax information and send it in directly to the IRS.