Fear and frustration because taxes make business owners not archive their returns. If you are running a cash-based business and do not have a good accounting system it may be difficult to track income and expenses.
During the year, the last thing you might consider is how much to be set aside for income tax. As a result, you ignore tax archiving and the possibility of taking taxes. You can file a business tax return through the internet.
Here are reasons to consider filing a tax return for your business.
1. Retirement Savings
In order to save for retirement, you must know how much money you're making in business. This not only requires good money management but tax strategies, as well.
A component of funding your retirement includes credits to your social security account. When you're self-employed, the payments that you make for Self-Employment tax are reported when you file your tax return. No return, no credit.
2. Business Opportunities
There are instances where tax returns are a requirement for business growth. If you are considering applying for certain business certifications, loans, or grants, for example, you will need proof of running a legitimate company.
Certifications can open doors of opportunity to larger contracts and more income. However, one requirement of most applications is a filed income tax return.