BUSINESS OWNER TAX TRAP
If you are an owner of a business operated as a sole proprietorship, general partner in a partnership, S corporation, single member limited liability company treated as a disregarded entity, or member in a limited liability company, you will want to consider making quarterly estimated income tax payments to the IRS.
The net profit that is allocated to you from these types of entities is fully taxable income on your personal income tax return.
Because no federal income tax is withheld on this income, if you fail to make quarterly estimated income tax payments, you may owe a large amount of tax when you file your personal income tax return.
In addition, you may incur various IRS penalties and interest charges, which are in addition to the tax due.
Properly tracking your business operations on a monthly basis will help you plan throughout the year and avoid an unpleasant and often expensive (but avoidable) surprise at tax time.
Avoiding an unpleasant surprise at tax time will improve your overall financial situation.
Be proactive. Plan. Take Action.
CALL NOW 561-746-1926 or 561-339-8102 if you have any questions or concerns or would like to schedule a FREE, Confidential, N0-Obligation Tax-Saving Consultation.