There are many perks that come with being self-employed, but come tax season, it can also be a headache. However, the more you learn and the more educated you become about your taxes, the better you’ll be able to run your business.
Here are four tax tips that self-employed entrepreneurs should know. Your Tampa tax lawyer will be able to assist with the rest.
1. Keep your accounts separate
Don’t mix work and pleasure. Make sure your personal checking accounts are separate from your business checking accounts. Your income and expenses should be completely separate from your personal finances. While this is something that most people already know to do, practicing this habit can be tricky as often times, people forget.
2. Discuss quarterly taxes
Take to your Tampa tax lawyer about quarterly taxes. In many cases, self-employed entrepreneurs have to file an annual return and pay estimated quarterly taxes.
3. Know what classifies as an expense
Ask your Tampa tax lawyer to help you determine what is considered an expense and what isn’t. Certain expenses such as self-employed health insurance premiums and 50 percent of meals are not considered business expenses, yet many people incorrectly calculate their next incomes to include those figures.
4. Retirement accounts
Take advantage of retirement accounts and the benefits they offer. Talk to your Tampa tax lawyer about solo 401k’s and SEP IRAs to ensure that you’re saving for retirement. You may even want to consider opening up a separate savings account and putting away a certain amount of money every year.
Have any tips you’d like to share? If so, share them on our Facebook page, tweet them to us at @FreshLegal or visit our Instagram. To schedule an appointment with a member of our legal team, visit www.businessslawertampa.com or call us at (813) 448-1042.