Businesses – Getting Started & Next Steps

An Overview of Individual Tax, Business Tax, and Bookkeeping.

Tax basically means a form of financial levy or charge that the government gets from its citizens and eligible taxpayers within its boundaries so that it can raise funds for running its operations as well as for public expenditures. Legal punishments and consequences can apply to an individual or organization that fails to pay the required amount. Tax is normally levied either in indirect or direct form. Payment of tax on however can be done using labor equivalent method or money. On the other hand, the system and mechanism that a country uses will vary from one country to the other.

On the other hand, bookkeeping involves keeping a record of personal or business financial transactions. It is one of the accounting procedures that an organization or individuals use to keep records of the financial transactions that have already taken place. This activity can be carried out using various methods such as double-entry and single-entry record of transactions among others.On the other hand, Bookkeeping Irving may involve any activity that a bookkeeper does in order to keep financial transactions records.

When it comes to both Irving Individual Tax and Business Tax services, there are many similarities but some differences also exist. Therefore, businesses tax services will have some differences when compared to individual tax services. Some of the differences that exist include.

A. The filling form.

When filling for Individual Tax Irving Services, one will be required to file form 1040. On the other hand, Irving Business Tax services will involve filling of form 1120 for corporations, 1065 for general partnership business and 990 for nonprofit organizations. On the side of a sole proprietorship, form 1040 is used since the business falls under individual tax income.

B. Deadlines.

Returns on business tax are regulated by certain deadlines unlike in individual taxes. These deadlines are found in different periods such as quarterly tax payments, monthly payroll tax returns, and annual tax deadlines. Quarterly deadlines demands filling to be done in September, June, April, and January months. Annual payments submitted in March, April, and May.

C. Types of deductions.

Business tax services normally come with different deductions. This form of tax contains different deductions made on almost every payment that is made.However, individual taxes will only provide for personal relief and write-offs which do not happen on regular basis. Actually, the deduction options on this tax form are less.

D. Rate on tax.

The rates charged are obviously different. Sole proprietorship attracts individual tax rates. In most cases, these rates will be between ten and thirty-nine point six percent. Business tax rates do not fall below fifteen but still under thirty-nine.

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