Hoosier Ombuddy – Taxes and your Small Business
Saturday mornings as a child were quite predictable as a child in Portage, Indiana. My brother and I would wake our parents up, eat breakfast, and then run errands around town. What was my favorite part about running these Saturday morning errands? We were able to “Breakfast with the Beatles” as we cruised around town. I always made my parents turn up the start of one song in particular. It started like this:
“Let me tell you how it will be
There’s one for you, nineteen for me
Cos I’m the taxman, yeah, I’m the taxman.”
This was my first introduction to the idea of taxes. What were they? Why are the Beatles singing about it? Why were people always so stressed out by them? I didn’t truly understand until I filed for the first time. As I work with entrepreneurs, I know how important taxes can be. And how running a successful business hinges on registering your business and filing your taxes. Need help? I can point you in the right direction.
First things first. Does your business employ people? You need an Employment Identification Number (EIN). An EIN is also known as a Federal Tax Identification Number, and is used to identify a business entity. You may apply for an EIN in various ways, and now you can apply online. This is a free service offered by the Internal Revenue Service and you can get your EIN immediately. You must check with your state to make sure you need a state number or charter.
To register your business with the Indiana Department of Revenue, you must submit a Business Tax Application (BT-1). This allows you to set up the appropriate tax accounts for your business. Completing this application online helps reduce the time it takes to register with the Indiana Department of Revenue for various tax types. Once your application is completed and submitted, the Indiana Department of Revenue will contact you within 48 hours regarding the status of your application.
As of 2013, all businesses in Indiana must file & pay their sales withholding taxes electronically. To aid in this process, the Indiana Department of Revenue offers INtax as a means to fully manage business tax obligations. You can manage your Indiana sales and withholding taxes, as well as prepaid sales along with industry specific taxes. It also gives you 24/7 access to business tax records, lets you file and pay online right up to the last deadline minute, and save you the cost and hassle of mailing in returns each month. INtax also offers a step-by-step guide to get started.
Did you know that both the IRS and IDOR offer no-cost educational sessions for small businesses? Whether you are a sole proprietorship, partnership, corporation these agencies want to ensure you have the best opportunity to succeed in business.
These are just a few resources that I found available for small businesses taxes. If you have questions about business taxes in Indiana, please contact the Indiana Department of Revenue.
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