Tax preparation is needed for those small business owners. There are common mistakes that owners should avoid to prevent overpays, errors, and penalties.
Do not classify an employee as an independent contractor. Classifying them may save some of the costs, but this is not a good idea. It can lead you to penalties and failures if you apply it incorrectly.
Do not mix your personal and business funds. Aside from there will be problems when you audit, it can get you trouble when it is time for tax filing.
Do not fail to pay your business tax, this can be the worst mistake you can make. Each late paid tax has a penalty of 0.5%. If the delay goes further, you will be jailed in no time.
Do not disregard to consult a Certified Public Accountant (CPA). It is best to consult an accountant to ensure that the deductions and tax returns coincide with your tax entitlement.
Do not disregard tax payments, make it as a priority. If you disregard tax payments it will make your business prone to failure and penalties.