Top CPA & Corporate Accountant Pauline Ho Debunks Small Business Tax Myths – Orlando, FL

Leading CPA Pauline Ho, head accountant at Laus Consulting Services LLC in Orlando, FL outlines small business tax myths. For more information please visit https://lausconsult.com

Orlando, FL, United States - May 1, 2021 /MM-REB/ —

Becoming an entrepreneur can be quite liberating, but getting into the nuts and bolts of running the business can be a headache, particularly when it comes to tax, revealed Pauline Ho head accountant at Laus Consulting Services LLC in Orlando, FL

For more information please visit https://lausconsult.com

To avoid making costly missteps in your approach to filing taxes, the Orlando, FL-based Accountant outlined 10 issues that need to be addressed to ensure smooth tax management.

Striking early is the best option on tax, so adopting a healthy attitude to regularly staying on top of tax returns with an all-year-round approach will ensure a smoother filing come deadline. “Don’t wait to the end of the deadline; otherwise, it will be a mad scramble to make payments, and that’s where errors can be made,” Ho commented.

Such a strategy will help you plan around the key date of April 15 when filing for taxes is due. Self-employed and business owners need to file quarterly for federal and state taxes.

Ho said freelancers or small business owners need to be highly pro-active on their tax as they will pay more compared to an employed person whose company take the responsibility of the tax element from their pay.

“If you earn over $12,000 annually, you need to pay taxes on that income,” she advised. “And if you earn over $600 from a client, and they don’t file you a 1099-MISC form by January 31, you are still eligible for any taxes owed.”

She advised that anyone dealing with international clients would also have to address tax issues. If you’re a US citizen, tax payments are owed to the US government regardless of where your clients are located.

But if you live in another country, you could well be liable for taxes in that country. To avoid double taxation, US citizens can reduce that burden by considering specific provisions such as foreign tax credit and deduction, and foreign-earned income exclusion.

Ho said there were many examples where a business could deduct an expense that is considered ordinary and necessary. “Turning to a specialised accountant will help business owners be sure of what they can deduct as part of their ongoing expenses during the year.”

Another is for the home-office based activities that many are now engaging in for business reasons. “You can deduct a home office expense for an actual workspace which is 100% dedicated to the business.”

One key area she agreed on that was essential for tax filings was keeping all business receipts. “This is particularly handy if your business gets audited as you will have to provide proof of payment and that it was suitable for your business needs.”

She revealed that asking for an extension beyond April 15 doesn’t apply to tax payments owned, only to filing the tax returns. Sole proprietors are eligible for self-employment tax, while for incorporated businesses, owners are responsible for paying self-employment tax on the salary they receive from the business’s earnings.

She added: “A good idea is to deploy a bookkeeping software system for your business as that will help your tax management over the year. And having an accountant in your corner for advice and filing tax returns is an excellent option as taxes become more complex and involved.”

Source: http://RecommendedExperts.biz

Contact Info:
Name: Pauline Ho
Email: Send Email
Organization: Laus Consulting Services LLC
Address: 879 Outer Rd B, Orlando, FL 32814
Phone: 407-401-9768
Website: https://lausconsult.com

Source: MM-REB

Release ID: 89006512