FAQs

• Sole proprietors & single-member LLCs: April 15 (or next business day).
• Partnerships & S Corporations: March 15 (or next business day).
• Corporations (C Corps): April 15 (or next business day).

Quarterly estimated tax payments are due in April, June, September, and January.

Yes, accounting software helps organize your numbers, but an accountant ensures your records are accurate, interprets financial data, and advises you on tax-saving strategies. Software is a tool—an accountant is a strategist.

File your return or extension on time to avoid late filing penalties. You can arrange a payment plan with the IRS for the balance due. Avoid ignoring the IRS—penalties and interest grow quickly.

Common taxes include:

• Income tax (federal and possibly state).
• Self-employment tax (for sole proprietors/partners).
• Payroll taxes (if you have employees).
• Sales tax (if applicable in your state).
• Excise taxes (for specific industries).

• Keep organized records for all income and expenses.
• Respond promptly to IRS notices.
• Work with your accountant or tax professional to prepare documentation.
• Only provide the information requested, no more, no less.

Being proactive and transparent helps audits go more smoothly.

It depends on your needs and budget:

• Employees: More control, but require payroll taxes and benefits.
• Contractors: Flexible and less overhead, but less control over how they work.

Misclassifying workers can lead to IRS penalties.

Yes. Use a separate bank account and credit card for your business. This makes record-keeping easier, helps maintain legal protection for LLCs or corporations, and avoids confusion at tax time.

Ideally, monthly. Reviewing regularly helps you spot problems early, track profitability, and make informed decisions.

At minimum:

• Profit & Loss Statement (Income Statement) – shows your revenue and expenses.
• Balance Sheet – shows assets, liabilities, and equity.
• Cash Flow Statement – shows where money comes from and where it goes.

A professional can:

• Keep you compliant with tax laws.
• Identify deductions and credits you may miss.
• Provide strategic advice to grow your business.
• Represent you before the IRS if needed.

The cost is often far less than the savings and peace of mind you gain.

You should maintain records that show all your business income and expenses, such as:

• Sales invoices and receipts.
• Purchase invoices and bills.
• Bank and credit card statements.
• Payroll records.
• Loan agreements and asset purchase documents.

Keeping organized records will make tax filing easier and help you understand your business performance.

• Keep detailed records of all deductible expenses.
• Use the right business structure (LLC, S Corp, etc.).
• Take advantage of depreciation, home office, and vehicle deductions.
• Contribute to retirement plans.
• Plan purchases and income timing strategically.

Consulting a tax professional before year-end can help maximize savings.

The IRS generally requires you to keep records for at least 3 years, but in some cases up to 7 years if there are questions about your return, or indefinitely if you didn’t file a return or filed fraudulently.

• LLC: Flexible, profits pass through to owners’ personal returns, fewer compliance requirements.
• S Corp: (for sole proprietors/partners).

The right choice depends on your income level, growth plans, and industry.

• Bookkeeping is the day-to-day recording of transactions (sales, expenses, payments, payroll).
• Accounting uses that data to prepare financial statements, analyze performance, and assist with tax planning.