Tax Planning Consultation – Make The Tax Planning Easier

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Tax Planning Consultation
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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.
• Its 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.

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• Some founders usually hire a VA to keep track of
  all the expenses and revenues, but if they dont
  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.

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• Talking to an accountant during tax time isnt
  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.

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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.

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• 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.

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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 dont have it.
• The retailer collects the tax and passes it on to
  the state at periodic intervals.

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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.

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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.

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VISIT

• https//www.freecashflow.io/