Vector Tax & Accounting Services delivers individual and small
business tax solutions in bookkeeping, tax preparation and accounting along
with their expert know-how to save hard-earned profits. Much
of the confusion in small business tax accounting comes from sole
proprietorship IRS reporting requirements. A sole proprietor is anyone who owns
an unincorporated business by him or herself. As a sole proprietor of a
business, the individual owner must report the business’ income and losses on
their personal IRS income tax return. With out a doubt, trained and effective
bookkeeping expertise will keep these balances in order. But, even more importantly,
good bookkeeping and accounting will demonstrate any possibilities for a
business to save money. And who doesn't love to save money?In
particular, Vector Tax & Accounting Services analyze accounting and aid
with QuickBooks to assess a business’ possibilities for incorporation. The
secret to saving lies in eliminating ‘self-employment taxes’, which are
required of the sole proprietor business owner. Sole proprietors must pay these
‘self-employment’ taxes on all of the
income of the business as if it were their own income, regardless of whether they
use the income or save it for reinvestment into the business. Incorporation,
however, creates a separate entity, whereby even as a single business owner of
an incorporated entity the owner must only pay personal income tax on the
salary or income they receive from the newly incorporated entity. A
good bookkeeping and tax preparation service will help you make these
assessments as you navigate your business’ possibilities and find the best
solutions to your tax accounting needs. To find out if incorporation is right
for your small business, or to receive expert business advice and tax
preparation, visit Vector Tax & Accounting Services online or call (860) 580-5183.