Tax time is upon us: For our US-based sellers, you have until April 18 to file your taxes. We have you covered with a few tax blogs For new entrepreneurs to help you file the right way.
As a new entrepreneur, there is a lot more you need to know for savvy tax filing. Of course, you can hire someone to do the work for you, but when you’re just starting out, this isn’t always an option.
Whether you hire someone to do your taxes for you or you DIY it, it’s always important to have a general understanding of how the basics of small business tax works.
We’ve scoured some of our favorite tax blogs for new entrepreneurs. From income to expenses to deducting home offices, there are countless ways to lower your tax bill. Below, you’ll find a collection of steps, tips, and general advice for filing your taxes as a new entrepreneur.
Let’s get started.
1) Business Taxes for the Self-Employed: The Basics
Any sellers based in the United States should take a read through the basics of business taxes. Whether you sell one item or 10, the IRS sees you as self-employed if you:
- Carry on a trade or business as a sole proprietor or independent contractor, or are otherwise in business as an individual, including a part-time business
- Own an unincorporated business
There are a handful of responsibilities when making money as an entrepreneur. Whether you are a blogger, writer, artist, knowing what they are is part of the foundation of being your own boss.
2) Complete Guide to Taxes for the Self-Employed
If this is your first year filing taxes as self-employed, you may feel overwhelmed. Whether you’re a creative entrepreneur, solopreneur, or freelancer, this guide is for you. It’s straight to the point, full of screenshots and friendly writing, unlike the stiff jargon of the IRS.
- Schedule C
- Schedule SE
You’ll also learn about paying quarterly taxes and preparing for year-end taxes, too. This is a great overview of everything needed when filing your self-employed taxes, so bookmark this for tax time for years to come.
3) A Friendly Guide to Schedule C Tax Forms
As a small business owner based in the US, filling out a Schedule C tax form is likely for you:
A Schedule C is a tax form you have to fill out to claim your profit or loss from business activities, so most non-incorporated, service-based sole proprietors have to fill one out.
4) 10 Tax Tips for Owners of a Home-Based Business
Our friends at FreshBooks wrote up this handy guide for you, shining some light on the confusion around what counts as deductions on your next tax bill.
Learn the basics of deducting different expenses like:
- your home office
- home utilities
Because, yes, taxes are boring, but saving money (legally!) is fun. Remember, too, that your monthly bill for paid Selz plans can be considered a deduction since it’s crucial to selling your products online. You can also download your billing statements which will be helpful for next year’s filing.
5) 3 Steps to Tax Zen: How to Collect, Record and Report Your Local and EU VAT Taxes with Selz
Do you sell to buyers around the world? If so, you might be liable for paying EU VAT taxes.
Even if this is the first time you’ve heard about EU VAT, our guide walks you through how to enable EU VAT on your Selz store and start collecting those taxes.
You can also export your orders to a CSV that make reporting those EU VAT taxes even easier.
Bonus: Prep for next year’s taxes right now
Because you’ll be filing your 2016 taxes next spring, it’s always a good idea to have some tax strategies in mind. One of the most important taxes to pay as a self-employed individual is your quarterly taxes. Without paying quarterly tax payments, you’ll find yourself with a massive tax bill next Spring.
The Small Business Associated put together a handy guide on How To Calculate and Make Estimated Tax Payments. Use an accounting software like FreshBooks or Quickbooks to track your income and expenses for your small business.
When in doubt, consult a professional
This post is only a guide to help you understand the legal responsibilities of being self-employed. If you aren’t sure, contact the IRS or work directly with a tax accountant.
Don’t know how to find a tax preparer or accountant? Read Small Business Association’s How to Find an Accountant Who Can Help Your Small Business over the Long Haul or Lifehacker’s How Do I Find A Good Tax Professional?.