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Tax Planning Consultation – Make The Tax Planning Easier

During the tax planning consultation, the accountant will provide you with strategic tax advice and educate you about the most relevant tax changes.

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Tax Planning Consultation – Make The Tax Planning Easier

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  1. Tax Planning Consultation

  2. Make The Tax Planning Easier • Most online businesses start as a one-person operation. • As companies grow, one of the earliest functions that business people do is outsource financial management. • It’s understandable that handling finance is a complex area that requires a lot of attention and expertise that is not realistic for the founders to develop themselves.

  3. Some founders usually hire a VA to keep track of all the expenses and revenues, but if they don’t have a good accounting experience, it will cause many problems within a few months. • Getting the right accounting solutions is essential to save yourself from finding this out the hard way. • Accurate financial records are the key to operating a successful eCommerce business.

  4. Talking to an accountant during tax time isn’t just a meeting to get through so that you can get on with the rest of the year. During the tax planning consultation, the accountant will provide you with strategic tax advice and educate you about the most relevant tax changes to make the best decisions for the business all year. • When you meet your tax professional, consider it an opportunity not just to file the income taxes but also to make sure that you are getting the support you need to continue growing in your business during the years to come.

  5. Taxes for eCommerce businesses • While running an eCommerce business, you would be selling many products subject to sales tax, and one thing is certain – sales tax law is not simple. • Though there are tools like TaxJar and Avalara to help you become compliant with the sales tax obligations, these services still require you to make the final decision about the product you are selling is subject to the tax in the states you have nexus with.

  6. On sales taxes, another important matter you must always be prepared for is the possibility of an audit. • As an eCommerce business, you should also file corporate taxes. • This is not something that should be an afterthought when considering an accounting firm to help you with the eCommerce business and filing the taxes for the company.

  7. How does sales tax work? • In the United States, there is no national sales tax. Instead, the sales tax is governed at the state level. • Each state decides whether to have or not have a sales tax. • The majority of the states have the sales tax, while only a few don’t have it. • The retailer collects the tax and passes it on to the state at periodic intervals.

  8. Note about economic nexus threshold • Economic nexus is the newest form of sales tax nexus. A pivotal 2018 Supreme Court of the U.S. paved the way for the U.S. states to require that sellers who meet a certain sales or transactions threshold collect sales tax from the buyers in that state. • Each state has different economic nexus law. • You can determine if you have economic nexus with the tools or connect with your accountant to evaluate sales tax nexus.

  9. Latest note on tax provisions expiring at year-end 2021 • With the U.S. Congress still considering the significant year-end tax legislation, almost everyone is not clear whether some tax provisions currently scheduled to expire at the end of 2021 sill, in fact, get expired. • U.S. Congress continues to permit the long list of regularly expiring provisions to be extended only for a year or two, at times even retroactively.

  10. VISIT https://www.freecashflow.io/

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