OK, so your business is up and running and it’s time to lodge company tax. But where do you start? What information do you need? And how do you go about completing the form? This guide will take you through the process step-by-step so that you can submit your company’s taxes with ease. Ready to get started? Let’s go!
What Is Meant By File Business Taxes?
Generally, businesses are required to file taxes annually with the Australian Taxation Office (ATO). This is done in order to report the profit or loss the business has made during the tax year. When lodging taxes, businesses will need to provide financial documentation, such as balance sheets and income statements. Failure to file taxes can result in penalties, so it’s important to be familiar with the tax filing process.
For businesses pending on your size and revenue, there are often tax breaks and schemes available, so be sure to speak with an accountant or tax advisor to learn more about how to reduce your businesses taxes. Lodging business taxes can be a complex process, but understanding the basics will help ensure that you stay compliant with the taxation laws.
How Do You Lodge Taxes When You Own A Business?
There are a number of different tax implications to consider when you own a business. The type of business entity you have will play a role in how you lodge your taxes, as well as what sort of taxes you are responsible for. For example, if you are a sole proprietor, you will file your taxes differently than if you operate as a private company or trust.
Your tax liability will depend on the type of business entity you have and the income of your business. You will also need to pay individual taxes if you have been paid a wage.
Here is a step-by-step guide to lodge taxes when you own a business:
Determine Your Business Entity Type
The first step in filing your taxes is to determine the type of business entity you have. This will impact how you file your taxes and what sort of tax liability you have. The most common types of business entities are sole proprietorships, partnerships, private companies, and trusts.
Gather Your Tax Documentation
Once you know what type of business entity you have, you will need to gather the appropriate tax documents. These will vary depending on your business entity type but may include things like your income statements, expenses, profit and loss statement, cash summaries, balance sheet, liability statement, BAS (Business Activity statement).
Calculate Your Tax Liability
After you have gathered all of your information, you will need to calculate your tax liability. This includes both GST & Tax payable, as well as any individual taxes that may be due.
Lodging your Taxes
Once you have all the information, you can file your taxes online through the ATO mygov website, mygovID or have your accountant lodge this on your behalf. Be sure to check the deadlines for filing and paying your taxes so that you do not incur any penalties.
Pay Your Taxes
After you have lodged your statements and information, you will need to pay any taxes that are due which will be generated by the information and reporting you have submitted. You can typically do this online or through your accountant. If you are unable to pay the full amount due, you may be able to set up a payment plan with the ATO.
Lodging taxes can be complex, especially if you own a business. However, by following these steps, you can ensure that you file your taxes correctly and avoid any penalties.
Do I File My Business Taxes With My Personal Taxes?
The answer to this question depends on the structure of your business. If you are a sole proprietor, then you will file your business taxes with your personal taxes. However, if your business is a partnership or corporation, then you will need to file separate business tax returns. In either case, it is important to keep good records of your income and expenses so that you can accurately report your profits (or losses) on your tax return. If you have any questions about which tax forms to use, you should consult with a tax advisor or accountant.
Conclusion
Now that you know how to file company tax for your business, it’s time to get started. The sooner you start, the better prepared you’ll be for tax season. If you have any questions, be sure to speak with a tax professional. They can help you navigate the process and ensure that you’re taking advantage of all the deductions and credits available to you. Thanks for reading!