Our current economic environment is certainly having an effect on our nation’s small businesses. For many entrepreneurs, what worked last year might not be working this year.
Madison, WI (PRWEB) March 30, 2010
As the end of the 2009 tax season rapidly approaches, many small business owners in the U.S. are likely unaware of the latest economic trends that could have significant impact on their bottom line in the coming year. BizFilings, a full-service, online incorporation service provider and small business resource, reminds entrepreneurs that tax season can be the perfect time to review business operations to determine if the business’s incorporation model is optimized to ensure an acceptable tax outcome in 2010 and beyond.
“Our current economic environment is certainly having an effect on our nation’s small businesses,” says Karen Kobelski, general manager of BizFilings. “For many entrepreneurs, what worked last year might not be working this year—tax season is an excellent time to perform an internal audit to ensure the business is still on track to meet operational expectations. During this process, many small business owners may discover that their business could be working harder for them simply by adjusting their incorporation status.”
Five Tax Trends for Small Businesses to Watch
1. IRS approving more tax audits in 2010: The House has approved a $5.5 billion increase in the IRS budget for fiscal year 2010, with the majority of funds going to enforcement.
2. Higher taxation rate: While legislation is pending, experts predict small businesses will pay higher taxes to cover the reform costs of the recently passed national health-care plan.
3. Additional taxes: Experts predict there will be an ever-increasing array of state and local taxes facing business owners as local governments stave off fiscal woes by seeking new sources of revenue to cover deficits.
4. New incentives: New tax incentives are being introduced to help spur individual retirement savings efforts brought on by poor stock performance.
5. More benefits of incorporation: Corporations are often taxed at a lower rate and have better taxable benefits. Talk to your accountant about potential tax advantages of incorporating.
Visit the BizFilings.com Learning Center for additional information about the potential tax benefits of incorporating your small business.
BizFilings is a full-service, online incorporation service provider, offering small business owners a fast, easy and economical way to form a corporation, limited liability company (LLC) or other business structure online or by phone. BizFilings also offers a full range of business filing and compliance products, including nationwide Registered Agent service, helping keep businesses in compliance with state regulations. BizFilings can be found online at http://www.BizFilings.com. BizFilings is a part of Wolters Kluwer http://www.wolterskluwer.com, a leading global information services company. Wolters Kluwer had 2009 annual revenues of €3.4 billion ($4.8 billion/£3.0 billion), employs approximately 19,300 people worldwide and maintains operations in over 40 countries across Europe, North America, Asia Pacific and Latin America.