{"id":92225,"date":"2026-03-21T22:12:35","date_gmt":"2026-03-22T03:12:35","guid":{"rendered":"https:\/\/www.bricktowntom.com\/blog\/?p=92225"},"modified":"2026-03-21T22:12:35","modified_gmt":"2026-03-22T03:12:35","slug":"are-you-making-business-taxes-more-complicated-than-they-need-to-be","status":"publish","type":"post","link":"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html","title":{"rendered":"Are you making business taxes more complicated than they need to be?"},"content":{"rendered":"<p><a href=\"https:\/\/www.godaddy.com\/garage\/business-taxes-complicated\/\" title=\"Are you making business taxes more complicated than they need to be?\" rel=\"follow noopener\" data-wpel-link=\"internal\" target=\"_self\"><\/a><\/p>\n<p><strong><em>This content should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.<\/em><\/strong><\/p>\n<p>Nobody genuinely enjoys doing taxes, whether it\u2019s as an individual or on behalf of a business. But small business owners, especially, dread tax season. There are some good reasons for this \u2014 for starters, it\u2019s not a fun process \u2014 but for the most part, small business owners make business taxes much more complicated than they have to be.<\/p>\n<p>Are you making some of these common mistakes with business taxes?<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#The_basics_of_business_taxes\" >The basics of business taxes<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#Income_tax\" >Income tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#Estimated_taxes\" >Estimated taxes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#Self-employment_taxes\" >Self-employment taxes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#Employment_taxes\" >Employment taxes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#Excise_taxes\" >Excise taxes<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#The_3_most_difficult_elements_of_tax_season\" >The 3 most difficult elements of tax season<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#1_Record_keeping_and_reporting\" >1. Record keeping and reporting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#2_Meeting_deadlines\" >2. Meeting deadlines<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#3_Using_the_correct_forms\" >3. Using the correct forms<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#9_mistakes_small_business_owners_make_when_filing_business_taxes\" >9 mistakes small business owners make when filing business taxes<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#1_Missing_deadlines\" >1. Missing deadlines<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#2_Keeping_inaccurate_or_inconsistent_payroll_records\" >2. Keeping inaccurate or inconsistent payroll records<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#3_Selecting_the_wrong_business_entity\" >3. Selecting the wrong business entity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#4_Confusing_business_and_personal_expenses\" >4. Confusing business and personal expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#5_Deducting_startup_expenses_incorrectly\" >5. Deducting startup expenses incorrectly<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#6_Categorizing_staff_members_incorrectly\" >6. Categorizing staff members incorrectly<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#7_Glossing_over_small_expenses\" >7. Glossing over small expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#8_Ignoring_deduction_limits\" >8. Ignoring deduction limits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#9_Neglecting_some_tax_expenses\" >9. Neglecting some tax expenses<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#5_ways_youre_overcomplicating_things\" >5 ways you\u2019re overcomplicating things<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#1_You_assume_this_is_unfamiliar_territory\" >1. You assume this is unfamiliar territory<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#2_Youre_learning_from_the_wrong_sources\" >2. You\u2019re learning from the wrong sources<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#3_Youre_lost_in_the_%E2%80%9Cbig_picture%E2%80%9D\" >3. You\u2019re lost in the \u201cbig picture\u201d<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#4_Youve_heard_horror_stories\" >4. You\u2019ve heard horror stories<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#5_You_have_too_many_other_responsibilities\" >5. You have too many other responsibilities<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#4_ways_small_business_owners_can_make_tax_season_easier\" >4 ways small business owners can make tax season easier<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#1_Start_early\" >1. Start early<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#2_Hire_the_right_people\" >2. Hire the right people<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#3_Keep_consistent_accurate_records\" >3. Keep consistent, accurate records<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#4_Stick_to_a_schedule\" >4. Stick to a schedule<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.bricktowntom.com\/blog\/03\/are-you-making-business-taxes-more-complicated-than-they-need-to-be.html\/#Business_taxes_dont_have_to_be_taxing\" >Business taxes don\u2019t have to be taxing<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"The_basics_of_business_taxes\"><\/span>The basics of business taxes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This guide isn\u2019t meant to educate you on business taxes from start to finish, but for the purposes of our discussion, it\u2019s important to give you some tax tips.<\/p>\n<p>Businesses are responsible for paying and withholding taxes. Sometimes, you\u2019ll be responsible for paying taxes on the money you make. You\u2019ll also be responsible for withholding and paying taxes on behalf of your employees.<\/p>\n<p>There are five general types of business taxes you should be aware of:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Income_tax\"><\/span>Income tax<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Nearly all businesses must file an annual income tax return (partnerships must file an information return). There are different standards and procedures for this, depending on how your business is structured.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Estimated_taxes\"><\/span>Estimated taxes<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Your business may be responsible for paying taxes throughout the year in the form of \u201cestimated tax\u201d payments. Each quarter, you\u2019ll make a contribution to the year-end taxes you project you\u2019ll owe, including the income tax and the self-employment tax (if applicable).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Self-employment_taxes\"><\/span>Self-employment taxes<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/www.godaddy.com\/garage\/calculating-self-employment-taxes\/\" data-wpel-link=\"internal\" target=\"_self\" rel=\"follow noopener\">Self-employment taxes<\/a> apply to self-employed people (i.e., entrepreneurs) to cover Medicare and Social Security. There are some special rules and exceptions here, but most self-employed people will owe this tax.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Employment_taxes\"><\/span>Employment taxes<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Employers have specific employment-related tax obligations. For example, you\u2019ll be responsible for withholding income taxes and withholding and contributing payments for Social Security and Medicare taxes.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Excise_taxes\"><\/span>Excise taxes<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Some businesses will have to pay special taxes on products they sell or manufacture \u2014 alcohol and gasoline are two examples.<\/p>\n<p>At the end of the year, you\u2019ll file a tax return for your business and provide documentation to the government to make sure you\u2019ve paid taxes properly and provide any additional payments that are owed.<\/p>\n<blockquote>\n<p>Note that in addition to filing taxes on a federal level, you\u2019ll also have to pay taxes on state and local levels \u2014 and if you do business in multiple areas, you may have to file multiple tax returns.<\/p>\n<\/blockquote>\n<p><em>Related: <\/em><em>When are business taxes due and how can you prepare now?<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_3_most_difficult_elements_of_tax_season\"><\/span>The 3 most difficult elements of tax season<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>What makes tax season difficult for business owners? These are the top three challenges they face:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Record_keeping_and_reporting\"><\/span>1. Record keeping and reporting<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/p>\n<p>Most business owners start to face challenges because of poor recordkeeping and reporting. The meatiest part of \u201cdoing your taxes\u201d is simply filling out forms. You\u2019ll note the expenses you\u2019ve paid, the money you\u2019ve made, and dozens of other details and calculations. But if you\u2019ve kept sloppy records throughout the year or if you don\u2019t know the answers to these questions, you\u2019re going to have a hard time filling out the forms accurately.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Meeting_deadlines\"><\/span>2. Meeting deadlines<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Tax deadlines can feel tight, especially if you\u2019re also juggling all your business operations while navigating the world of business taxes. If you\u2019re caught off guard, or if you have trouble getting the paperwork together, you might have to scramble to meet a deadline \u2014 or face the consequences of missing one.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Using_the_correct_forms\"><\/span>3. Using the correct forms<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The IRS has hundreds of forms, they\u2019re not labeled intuitively, and the instructions are often written in a clunky and disorganized fashion. It\u2019s a pain to figure out which forms you need and how to use them.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"9_mistakes_small_business_owners_make_when_filing_business_taxes\"><\/span>9 mistakes small business owners make when filing business taxes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Many small business owners make some combination of the following mistakes when filing business taxes:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Missing_deadlines\"><\/span>1. Missing deadlines<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The most common mistake is the simplest to understand and the easiest to avoid: missing deadlines. Some combination of procrastination, inattention, disorganization and\/or apathy ultimately leads to business owners missing important deadlines.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Keeping_inaccurate_or_inconsistent_payroll_records\"><\/span>2. Keeping inaccurate or inconsistent payroll records<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If you keep sloppy records, or if you don\u2019t know where to find certain information, you\u2019re going to have a hard time filling out and submitting the requisite forms.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Selecting_the_wrong_business_entity\"><\/span>3. Selecting the wrong business entity<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Is your business a sole proprietorship? Or is it an LLC? You should know the answer to this question and know the differences between these business entities.<\/p>\n<div class=\"callout\">Every year, there are at least some business owners who file a return based on the wrong structure.<\/div>\n<p>&nbsp;<\/p>\n<p>Taxes do tend to be more complicated for corporations and LLCs than they are for sole proprietorships and partnerships, but don\u2019t let that intimidate you.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Confusing_business_and_personal_expenses\"><\/span>4. Confusing business and personal expenses<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/p>\n<p>You have a client who\u2019s also a good friend. You take him out to dinner for chit chat and laughs, and you happen to talk about business for a few minutes during this interaction. Does that technically count as a business expense since he\u2019s a client of yours?<\/p>\n<p>This is ambiguous territory. But the majority of your expenses will be very clearly business related or not business related. Delineate these categories and you\u2019ll have a much easier time accurately reporting your expenses.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Deducting_startup_expenses_incorrectly\"><\/span>5. Deducting startup expenses incorrectly<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Your business\u2019s startup costs are (mostly) deductible, but the rules are somewhat difficult to understand.<\/p>\n<p>According to <a href=\"https:\/\/quickbooks.intuit.com\/r\/taxes\/3-tax-deductions-available-only-to-startup-businesses\/\" data-wpel-link=\"external\" rel=\"nofollow external noopener\">Intuit QuickBooks<\/a>, \u201cThe IRS allows you to deduct $5,000 in business startup costs and $5,000 in organizational costs, but only if your total startup costs are $50,000 or less. If your startup costs in either area exceed $50,000, the amount of your allowable deduction will be reduced by the overage. And if your startup costs are more than $55,000, the deduction is eliminated.\u201d<\/p>\n<p>Additionally, you can deduct startup expenses over several years. It\u2019s easy to get things wrong here.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"6_Categorizing_staff_members_incorrectly\"><\/span>6. Categorizing staff members incorrectly<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Modern businesses often work with a mix of full-time employees, part-time employees and <a href=\"https:\/\/www.godaddy.com\/garage\/basics-about-freelance-taxes\/\" data-wpel-link=\"internal\" target=\"_self\" rel=\"follow noopener\">independent contractors<\/a>, all of whom have different tax implications. Categorizing your staff members incorrectly or accounting for them inappropriately could result in complexity (and possibly penalties) later on.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"7_Glossing_over_small_expenses\"><\/span>7. Glossing over small expenses<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There are tons of little expenses accrued by your business, from petty cash expenditures to magazine subscriptions. If you don\u2019t account for these when tallying up your expenses and deductions, you could end up paying more in business taxes than required.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"8_Ignoring_deduction_limits\"><\/span>8. Ignoring deduction limits<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Not all deductions are treated equally. For example, <span class=\"TrackChangeTextInsertion TrackedChange SCXW117363371 BCX0\"><span class=\"TextRun SCXW117363371 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW117363371 BCX0\">t<\/span><\/span><\/span><span class=\"TrackChangeTextInsertion TrackedChange SCXW117363371 BCX0\"><span class=\"TextRun SCXW117363371 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW117363371 BCX0\">alk to your tax <\/span><\/span><\/span><span class=\"TrackChangeTextInsertion TrackedChange SCXW117363371 BCX0\"><span class=\"TextRun SCXW117363371 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW117363371 BCX0\">professional about <\/span><\/span><\/span><span class=\"TrackChangeTextInsertion TrackedChange SCXW117363371 BCX0\"><span class=\"TextRun SCXW117363371 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun CommentStart CommentHighlightPipeRest CommentHighlightRest SCXW117363371 BCX0\">the<\/span><\/span><\/span><span class=\"TrackChangeTextInsertion TrackedChange SCXW117363371 BCX0\"><span class=\"TextRun SCXW117363371 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun CommentHighlightPipeRest SCXW117363371 BCX0\"> percentage of meal and entertainment costs for your business that can be deducted<\/span><\/span><\/span>.<\/p>\n<p>If you try to deduct too much, you\u2019ll run into major issues.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"9_Neglecting_some_tax_expenses\"><\/span>9. Neglecting some tax expenses<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Businesses have many different types of taxes to consider, such as property taxes, payroll taxes, local taxes, excise taxes and self-employment taxes.<\/p>\n<p>Yes, it\u2019s a lot to keep track of, but each tax is important.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_ways_youre_overcomplicating_things\"><\/span>5 ways you\u2019re overcomplicating things<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As we\u2019ve seen, there are some elements of business taxes that are truly complex. But many business owners end up exaggerating these complexities and overestimating how difficult doing business taxes truly is.<\/p>\n<div class=\"callout\">Why are you making business taxes overly complicated?<\/div>\n<p>&nbsp;<\/p>\n<p>Chances are, you\u2019re getting tripped up by one or more of the following tendencies:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_You_assume_this_is_unfamiliar_territory\"><\/span>1. You assume this is unfamiliar territory<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Are you one of those people who \u201cjust isn\u2019t good with numbers\u201d? Do you believe yourself to be bad with money? If so, you may instantly underestimate your ability to handle taxes.<\/p>\n<p>You don\u2019t have to be a math genius or a personal finance guru to handle business taxes, so don\u2019t sell yourself short.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Youre_learning_from_the_wrong_sources\"><\/span>2. You\u2019re learning from the wrong sources<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The IRS isn\u2019t known for its approachability or clarity. In fact, many online sources are notoriously bad at communicating how taxes work. If you read an article that doesn\u2019t make sense, don\u2019t blame yourself and don\u2019t blame the complexity of taxes. Just move on to an article that phrases things in different, easier-to-understand terms (or hire an expert).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Youre_lost_in_the_%E2%80%9Cbig_picture%E2%80%9D\"><\/span>3. You\u2019re lost in the \u201cbig picture\u201d<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Businesses have many tax obligations and a cluster of responsibilities come tax season. If you try to contemplate and plan for all of them at once, you\u2019re going to feel overwhelmed. Instead, try to focus on one step at a time and one form at a time. No individual step in the business tax world is unconquerable.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Youve_heard_horror_stories\"><\/span>4. You\u2019ve heard horror stories<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>We\u2019ve all heard about businesses that have made mistakes and faced massive penalties but these are often exaggerated.<\/p>\n<blockquote>\n<p>If you plan ahead, you shouldn\u2019t miss any deadlines, and if you miss a filing or payment deadline, the penalties are pretty reasonable.<\/p>\n<\/blockquote>\n<p>As long as you\u2019re not committing tax fraud, there\u2019s no reason to add extra anxiety to an already-stressful responsibility.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_You_have_too_many_other_responsibilities\"><\/span>5. You have too many other responsibilities<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Many business owners who worry excessively about business taxes are simply distracted by other responsibilities. Running a business and taking care of a family is a lot of work, so, of course, the temporary addition of business tax planning seems like an obtrusive and unnecessarily complicated burden.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"4_ways_small_business_owners_can_make_tax_season_easier\"><\/span>4 ways small business owners can make tax season easier<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>How do you make business taxes easier?<\/p>\n<p>There are some important strategies you can use to make tax season much less complicated for your business:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Start_early\"><\/span>1. Start early<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/p>\n<p>The best thing you can do is start early. The deadline problem\u00a0disappears if you start working on your taxes a few weeks, or ideally, a few months ahead of when you would normally start.<\/p>\n<p>You\u2019ll have much more time to gather records, check your numbers, find the right forms and assemble everything for delivery.<\/p>\n<p>You\u2019ll also be less stressed \u2014 and you won\u2019t be as weighed down by other priorities and responsibilities.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Hire_the_right_people\"><\/span>2. Hire the right people<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The right team can make a huge difference in how you prepare your taxes.<\/p>\n<div class=\"callout\">Hiring a professional accountant, or for larger businesses, an entire team of bookkeepers and accountants, can spare you the headache of trying to solve all your financial challenges on your own.<\/div>\n<p>&nbsp;<\/p>\n<p>If you\u2019re committed to doing the work yourself or if you can\u2019t afford an <a href=\"https:\/\/www.godaddy.com\/garage\/bookkeeper-vs-accountant\/\" data-wpel-link=\"internal\" target=\"_self\" rel=\"follow noopener\">accountant<\/a>, make sure the people you work with \u2014 including contractors, vendors and clients \u2014 are open and transparent with their recordkeeping.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Keep_consistent_accurate_records\"><\/span>3. Keep consistent, accurate records<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Accurate and consistent recordkeeping will make business taxes a breeze. The trouble is, you have to stay organized throughout the year.<\/p>\n<p>Certain types of software, like <a href=\"https:\/\/www.godaddy.com\/garage\/what-is-office-365\/\" data-wpel-link=\"internal\" target=\"_self\" rel=\"follow noopener\">Microsoft 365<\/a>, can make it much easier to store your records in one place (and keep them properly organized so you can always find what you\u2019re looking for). Just make sure you track all your financial information consistently, and back up your records in the cloud for security reasons.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Stick_to_a_schedule\"><\/span>4. Stick to a schedule<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>When tax season starts getting nearer, set a schedule for yourself. For example, if you know the deadline to send out W-2s is January 31, make it a point to send them by the 24th at the latest. Use mini-deadlines leading up to the 24th to keep yourself on track for that long-term goal. This will also force you to break each responsibility down into smaller, more easily digestible steps.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Business_taxes_dont_have_to_be_taxing\"><\/span>Business taxes don\u2019t have to be taxing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are some challenging elements of business taxes, but in reality, business taxes are simpler and more accessible than we make them out to be.<\/p>\n<p>If you take your time, start early, hire the right people and prioritize keeping accurate, organized records, you\u2019ll find yourself completing your tax obligations in record time \u2014 with minimal stress.<\/p>\n<p>The post <a rel=\"follow noopener\" href=\"https:\/\/www.godaddy.com\/garage\/business-taxes-complicated\/\" data-wpel-link=\"internal\" target=\"_self\">Are you making business taxes more complicated than they need to be?<\/a> appeared first on <a rel=\"follow noopener\" href=\"https:\/\/www.godaddy.com\/garage\" data-wpel-link=\"internal\" target=\"_self\">GoDaddy Blog<\/a>.<\/p>\n<p>Source: Go Daddy Garage<\/p>\n<p id=\"kc_opp\"><small>Republished by  <a href=\"http:\/\/www.blogtrafficexchange.com\/\">Blog Post Promoter<\/a><\/small><\/p>","protected":false},"excerpt":{"rendered":"<p>This content should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or &hellip;<\/p>\n","protected":false},"author":1,"featured_media":92226,"comment_status":"false","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[23511],"tags":[126],"class_list":["post-92225","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ebusiness-emarketing","tag-information"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.bricktowntom.com\/blog\/wp-content\/uploads\/2022\/02\/table-and-chair-1-300x168-1.jpg?fit=300%2C168&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p3k0YU-nZv","jetpack-related-posts":[{"id":92662,"url":"https:\/\/www.bricktowntom.com\/blog\/03\/why-i-love-doing-our-taxes.html","url_meta":{"origin":92225,"position":0},"title":"Why I Love Doing Our Taxes","author":"admin","date":"March 29, 2026","format":false,"excerpt":"I know, I know. You\u2019re probably thinking \u2013 Joe has gone too far this time. However, this isn\u2019t as uncommon as you\u2019d think. According to a Pew Research survey, about a third of Americans like or even love doing their taxes. Most of these people said they like doing taxes\u2026","rel":"","context":"In &quot;A Head Start&quot;","block_context":{"text":"A Head Start","link":"https:\/\/www.bricktowntom.com\/blog\/category\/a-head-start"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bricktowntom.com\/blog\/wp-content\/uploads\/2022\/04\/ILoveTax350.jpg?fit=350%2C350&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":92263,"url":"https:\/\/www.bricktowntom.com\/blog\/03\/websites-marketing-and-avalara-avatax-partner-to-empower-entrepreneurs.html","url_meta":{"origin":92225,"position":1},"title":"Websites + Marketing and Avalara AvaTax partner to empower entrepreneurs","author":"admin","date":"March 29, 2026","format":false,"excerpt":"NOTE: This information isn\u2019t intended to establish a relationship or advise you on taxes.\u00a0 It\u2019s always a good idea to consult a tax professional to learn more. If you were to poll small business owners on their biggest pain points, you\u2019d find that taxes consistently resurface as a major stressor.\u2026","rel":"","context":"In &quot;E-business &amp; E-marketing&quot;","block_context":{"text":"E-business &amp; E-marketing","link":"https:\/\/www.bricktowntom.com\/blog\/category\/ebusiness-emarketing"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":92513,"url":"https:\/\/www.bricktowntom.com\/blog\/04\/were-building-a-beach-cabin.html","url_meta":{"origin":92225,"position":2},"title":"We\u2019re building a beach cabin!","author":"admin","date":"April 4, 2026","format":false,"excerpt":"Hey everyone, we are building a beach cabin! \u2026In Thailand! Huh, what? Okay, let\u2019s start over. As many of you know, I was born in Thailand and immigrated to the US when I was young. I still have family ties here and I\u2019m in Thailand for 3 months to help\u2026","rel":"","context":"In &quot;A Head Start&quot;","block_context":{"text":"A Head Start","link":"https:\/\/www.bricktowntom.com\/blog\/category\/a-head-start"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bricktowntom.com\/blog\/wp-content\/uploads\/2022\/03\/Were-Building-A-Beach-Cabin-350.jpg?fit=350%2C525&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":92733,"url":"https:\/\/www.bricktowntom.com\/blog\/03\/is-spending-on-experience-overrated.html","url_meta":{"origin":92225,"position":3},"title":"Is Spending On Experience Overrated?","author":"admin","date":"March 20, 2026","format":false,"excerpt":"Whew! I finished our taxes and sent them in on time. Unfortunately, we owed the government over $3,000 because I didn\u2019t pay enough estimated taxes. I also contributed $5,000 to my i401k for 2021. That reduced our tax liability a bit. Unfortunately, these big payments reduced our cash savings to\u2026","rel":"","context":"In &quot;A Head Start&quot;","block_context":{"text":"A Head Start","link":"https:\/\/www.bricktowntom.com\/blog\/category\/a-head-start"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bricktowntom.com\/blog\/wp-content\/uploads\/2022\/04\/Experience400.jpg?fit=400%2C400&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":92664,"url":"https:\/\/www.bricktowntom.com\/blog\/04\/woocommerce-wednesday-how-to-turn-your-woocommerce-store-into-an-international-powerhouse.html","url_meta":{"origin":92225,"position":4},"title":"WooCommerce Wednesday: How to turn your WooCommerce store into an international powerhouse","author":"admin","date":"April 5, 2026","format":false,"excerpt":"Today\u2019s ecommerce market has significantly expanded the customer base available to sellers. Businesses can now reach shoppers around the world almost as easily as those just down the road. In this post, we will look at how you can set up WooCommerce for international orders to grow your audience. What\u2026","rel":"","context":"In &quot;E-business &amp; E-marketing&quot;","block_context":{"text":"E-business &amp; E-marketing","link":"https:\/\/www.bricktowntom.com\/blog\/category\/ebusiness-emarketing"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bricktowntom.com\/blog\/wp-content\/uploads\/2022\/04\/world-3258865_12801-300x210-1.jpg?fit=300%2C210&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":93345,"url":"https:\/\/www.bricktowntom.com\/blog\/03\/2022-passive-income-update.html","url_meta":{"origin":92225,"position":5},"title":"2022 Passive Income Update","author":"admin","date":"March 21, 2026","format":false,"excerpt":"Whew, the first half of 2022 is over. It\u2019s been a tough year for investors. The stock market is officially in a bear market and a recession is looming. Along with the stock market, our net worth decreased by the largest dollar amount ever (15%). However, our passive income is\u2026","rel":"","context":"In &quot;A Head Start&quot;","block_context":{"text":"A Head Start","link":"https:\/\/www.bricktowntom.com\/blog\/category\/a-head-start"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bricktowntom.com\/blog\/wp-content\/uploads\/2022\/07\/2022-H1-Passive-Income-350.jpg?fit=350%2C525&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.bricktowntom.com\/blog\/wp-json\/wp\/v2\/posts\/92225","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bricktowntom.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bricktowntom.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bricktowntom.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bricktowntom.com\/blog\/wp-json\/wp\/v2\/comments?post=92225"}],"version-history":[{"count":9,"href":"https:\/\/www.bricktowntom.com\/blog\/wp-json\/wp\/v2\/posts\/92225\/revisions"}],"predecessor-version":[{"id":102631,"href":"https:\/\/www.bricktowntom.com\/blog\/wp-json\/wp\/v2\/posts\/92225\/revisions\/102631"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bricktowntom.com\/blog\/wp-json\/wp\/v2\/media\/92226"}],"wp:attachment":[{"href":"https:\/\/www.bricktowntom.com\/blog\/wp-json\/wp\/v2\/media?parent=92225"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bricktowntom.com\/blog\/wp-json\/wp\/v2\/categories?post=92225"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bricktowntom.com\/blog\/wp-json\/wp\/v2\/tags?post=92225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}