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July 13, 2017 | 4-minute read (753 words)
One of the qualities that most describes the mindset of an entrepreneur is a solo focused vision, a desire to see things through directly. While that is a highly necessary aspect that shapes the personality of many a founder it can be a detriment in the critical area of dealing with tax preparation. There are many factors that go into reporting and filing, not the least of which is having it all done well and turned in on the exact right date, of which may change year to year. In fact, this year’s dates are different than the year previous so for the do it yourself type that means that there may be some late penalties coming.
Tax laws are always evolving, especially after a major political change such as a new president or other significant term changes, and guidelines as well as more importantly due dates can shift drastically. All those factors are why even if the prospect of long forms and itemizations don’t deter you from wanting to handle all aspects yourself or in house with your fellow partners it is highly recommended to use a professional dedicated service provider, such as Early Growth Financial Services for business tax compliance. One of the most sensitive issues that a dedicated professional is keenly aware of is due dates and how to handle any possibility or fall out in the event of missing them. Sometimes even when penalties have already been determined a skilled professional can help with mitigating the circumstances, especially for newly launched endeavors. Depending on the structure of your entity missing a due date can have mild to disastrous impacts on your startup's finances.
The effect on your firm varies by firm type, outstanding taxes owed, as well as can be highly affected by if you have any foreign ownership involved. These factors can easily add penalties on top of any tax liability ranging from a couple hundred dollars monthly to an instant penalty of $10,000, all of which can result in bank assets being frozen and the fines being levied directly on your accounts by the IRS. To give an outline of what each scenario may look like we have the following breakdown:
Accounting
Finance
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