Have you been busy this tax season? Tax Day is Monday, April 15th, 2019, and many business owners are experiencing different results than normal because of the new tax policies implemented in 2018.
Whether you owe or earn (and for most small businesses, it’s owe), you have options to use this tax season to your business’s advantage.
IF YOU OWE
Tax season is a good time to receive funding. If you find yourself in need of extra funds to cover Uncle Sam’s tax withdrawal, you can use a boost in funding to pay off your taxes immediately without incurring the %5 interest fee. Otherwise, dipping into your working capital may put a strain on your current cash flow.
The IRS offers a payment plan, but as stated, it comes with interest and may be too much of a long term commitment for your business’s cash flow. If your fail to file or pay by the deadline, you will be penalized. Companies that file after the April 15 deadline may be on the hook for an additional 5% of the taxes owed each month up to a maximum of 25%.
If requesting an extension is too stressful for your business, funding can help you pay owed taxes, saving you money on owed taxes interest and helping you grow your business in the meantime!
If You Earn
It’s okay to spend your tax refund immediately! Especially if you spend smart. Excellent ways to reinvest your tax refund into your business are:
Make large equipment purchases to write off for next year’s taxes, AND replace old equipment and donate it, which can also be used on a tax write off. Max out 401k contributions for staff ahead of time. Use your refund in combination with extra funding to grow even more without taking on as much debt!
Filed your taxes wrong? Read here for what to do.
