Small Business Income Tax

by Bert Doerhoff in Small Business

Many small businesses are claiming that they are being given the short end of the stick in the area of income taxes. In fact, there has been much controversy centered on the topic.

Many small businesses struggle to pay their income tax while large Fortune 500 companies neglect to pay it altogether. According to the Citizens for Tax Justice, some large companies pay significantly reduced taxes, while some have paid no income taxes at all between 2008 and 2010.

News like this can be very frustrating for small business owners. But there is not much they can do to change the injustice, except to stop paying income tax as well, which is illegal and an all around bad idea.

However, there is good news. On November 8, a program was launched in Ohio that gives investors an income tax break when they invest in the state's small businesses. For more details on the program, check out this article from the Springfield News-Sun: http://www.springfieldnewssun.com.

Also, The Small Business Jobs Act of 2010 contains some tax provisions for small businesses that take effect this year. Many are designed to encourage investment and provide access to capital. For a full list of provisions visit http://www.irs.gov/businesses/small/article/0,,id=230307,00.html.

Changes in income tax law are occurring all the time. It is very difficult to keep up with the changes and how they affect your small business. Outsourced accounting is always an option for busy business owners who would like some advice on their taxes. There are plenty of accounting companies out there; you just need to shop wisely to make sure your taxes are in the right hands.

Biography:

Bert Doerhoff is an expert in all things having to do with small business taxes and accounting. He has been chosen multiple times by the CPA Digest for the “Digest 50 Award”, representing one of the top 50 CPA firms in the country. His accounting services in Jefferson City have helped many small businesses find success.