It can be costly and complicated to navigate the challenges of owning and operating a business. In addition to developing a business plan, choosing the right entity and simply navigating the complications of daily operations, business owners will also need to navigate tax matters as well. Taxes for self-employed individuals can be difficult and confusing, but it is critical to understand how to do so correctly in order to avoid an audit and various penalties.
The obligations of the self-employed
When self-employed individuals do business in Georgia, they must take their tax obligations into account with every price they charge. They will need to plan in advance to meet their tax requirements when creating their financial plans for their small business for the year. These individuals will also need to carefully track all of their expenses so that they can deduct them when it is time to file taxes.
According to the Internal Revenue Service, self-employed individuals are those who are the sole proprietor of a business, those who carry on a trade as a source of income, independent contractors or members of a partnership. Essentially, it includes most individuals who are in business for themselves. They have to pay self-employment tax and income tax.
Dealing with tax issues
Tax issues are complex, regardless of employment status. A self-employed individual in Georgia who is facing tax complications or needs clarification on tax laws will benefit from speaking with an experienced tax attorney. An assessment of one’s individual situation can provide insight regarding the most beneficial way forward.