There is a global “ease of doing business index” which applies to different countries. The U.S. might be doing quite well from a macro perspective. However when we look at different states, some perform much better than others, but the public does not have official data to consider when choosing a state. The states where it is more difficult to do business, may well be the reason why smaller streamlined nations like Singapore took the top position, yet the U.S. is still high on the list.
Consider this: every year when the tax season arrives, some SME’s go into panic mode. The Internal Revenue Service has started accepting and processing tax returns for 2021. This year’s tax season opened 17 days earlier than last tax season’s late start– almost two weeks into February. The IRS has warned that a resurgence of COVID-19 infections and the added pressure of less funding being authorized from Congress than that of what the Biden administration had requested could result in the filing season seeing more challenges.
Fortunately for people choosing to do business in Florida, things here are quite streamlined. Many of the nation’s biggest LLC formation providers rank Florida highly for it’s ease of doing business. In fact, the only reason Delaware sometimes attracts company formations, is because some VC’s prefer it’s legal system. Yet when it comes to taxes and ease of doing business, both Delaware, California and New York are no match for Florida. The good news is by using a registered agent in Florida – you don’t even have to move here to do business in the state.
There are ways in which to make life easier for any business regardless of which state you are in. Below we will look into some ideas.
5 Ways to make it even easier for yourself:
Outsource a Professional
If tax filing becomes a bit too overwhelming to handle, the best way to combat the issue and ensure that taxes are filed correctly and on time, one can easily hire a reputable CPA or to get reliable USA tax services in Dubai, UAE to handle the filing.
Registered agents are required by law for every formal business in the U.S. If a business is using a registered agent service, they will usually help with the filing of the paperwork. For more information, The Really Useful Information Company (TRUiC) provides an in-depth look at registered agents and other business tools.
Copyright: TRUiC
Be Well Organized
Being well organized is key; the process can be simplified by having all of the necessary documentation ready and in order. Sort out mail received that has the designation “tax document enclosed,” as well as any receipts that may be needed. Some of the necessary documentation includes:
- All receipts to document unreimbursed business expenses
- Any documentation for other deductible items
- Any information regarding student loan interest
- Documentation of traditional IRA or similar retirement account contributions
- Medical bills that are more than 10% of your income
- Mortgage insurance
- Mortgage interest
- Property tax information
- Tuition and fees documentation
- W-2 and 1099 forms– for dividend and interest income
Suggested Video on Registered Agents:
Familiarize Yourself with State Laws
Chances are unless you are a legal professional, you are not going to be able to memorize the entire United States tax code. However, it is important that taxpayers understand the basics and are familiar with the legal aspects and implications of filing or not filing their tax returns. The United States government also provides free online resources to help make the filing process easier to understand. They outline the major aspects and procedures which make the concepts easier for laymen to understand. The government also has a “Volunteer Income Tax Assistance (VITA)” and “Tax Counseling for the Elderly (TCE)” programs– the volunteers will provide free tax return assistance for any eligible taxpayers.
Budget Sufficient Time
Tax season is an important time of the year; it is important to ensure that the process is not rushed as this avoids any mistakes being made during the process. One of the biggest issues that people face is that they do not budget sufficient time and find themselves in a situation where they are unable to complete their taxes in time, or they have done so incorrectly– both of these instances can have penalties attached to them. Set aside a generous amount of time that will be exclusively for filing the tax return. The amount of time will depend on the complexity of the specific tax situation; this could range from anywhere between an hour to an entire weekend. However, by doing it all at once and staying on task, it allows for a smoother process.
Utilize Online Resources
The internet is a treasure trove of useful information; however, it is important to remember that not all of it can be trusted. Be wary of online scams that claim to be able to assist with tax queries but have ulterior motives. Stick to government and reputable news sources and only take advice from those that are qualified to provide it. This will ensure that there is no misinformation being translated as facts.
Final Thoughts
Tax season is a busy time of year, and while preparing for the year ahead, it is important not to leave filing for the last minute. The process can be overwhelming, so at times utilizing the services of a professional may be the most viable option.