Can Your Small Business Get a Tax Refund

Tax structures and brackets can be extremely difficult to understand, but as a small business owner it’s important that you have at least a basic understanding of the taxes your business is paying. As someone who’s been providing Marylanders with tax planning services for many years, we wanted to take some time today to talk about the different ways your small business can receive a tax refund.

What Type of Business do You Own?

One of the factors that affects your tax refund the most is what kind of “business entity” was chosen when the company was established. Here are some of the most common classifications:

• Sole Proprietorship — A sole proprietor is the sole owner of a business. Most sole proprietors report their income with a Form 1040 and a Schedule C.
• Partnership — Partnerships are formed when two or more people are involved in a business. Each partner contributes towards the business, be it with money, property, labor, or expertise, and every partner shares any profits or losses. Partnerships usually file a Form 1065.
• Limited Liability Corporation (LLC) — The main point of forming an LLC is to provide the business owner/owners with added protection against lawsuits. LLCs have options when it comes to filing a tax return, and typically benefit from working with a professional MD tax planning professional.

These are just the three most common tax classifications for business. There are others that have specific benefits for certain situations and industries. The best way to learn about all the intricacies of different business registrations is by talking with an experienced tax planning services company

What Taxes Does a Business Pay?

In addition to federal income taxes, small businesses also need to pay state income taxes, employment taxes, excise taxes, and property taxes. Failure to pay all of your taxes could lead to your business coming under the scrutiny of the IRS. Work with a professional tax planning specialist to make sure you’re caught up on all your taxes.

Work with a Professional MD Tax Planner

Here at CFO Source, we’ve been providing Marylanders with our tax planning services for many years, and we’ve helped small businesses across the state. If you have questions about your business or your tax refund, give us a call. Our team of professional tax experts is standing by ready to assist you in any way possible.