It is tax time! And that means an appointment with your CPA should be in your future. When you go in, here are some questions you should make sure to ask:
- Should my tax entity status be changed? After preparing your taxes for 2011, your accountant should be able to help you determine whether the entity status for your business is the best or if you should change it. Remember, you have 75 days from the 1st of the year to submit a Form 2553 if you want to change your status to an s-corporation from some other entity.
- Am I paying all the employment taxes I should be? Double check with your accountant that you are paying all necessary employment taxes so you don’t get a surprise later on. For instance, are you employed in Denver, Aurora or Greenwood Village? If so, are you paying the opportunity privilege tax? If you are an s-corporation, are you paying unemployment insurance? Are there any other taxes you aren’t aware of?
- Would setting up a retirement plan help me? For some people, a retirement plan may save money on taxes and help prepare for retirement. However, for others it may not create that much of a tax break and spending the money elsewhere may be more beneficial. Ask your accountant what is best for you.
- What other areas can I change to save more on taxes? There may be areas that you can save money and not even know it. For instance, this year there was a tax credit on some home improvements. If you needed them, it was a great time to do them. There may be tax breaks for hiring certain people, setting up a business home in certain areas or other things. Ask you accountant about your goals for next year and see if any of them can incorporate tax breaks.
- Would refinancing help me? Whether it is your home, your business building, or a loan on equipment, you may want to see if refinancing would help you out. Ask your accountant about the current rates to see how much you would save.
As always if you have an legal questions, contact me, your Denver business lawyer, today!