Wholesale Business - Tax Season Tips
One of the great steps your wholesale business portfolio can suffer or pass with greater ease is the Uncle Sam month- April month. For this exceptional month when you are a retailer or a wholesale distributor situation can get complicated or very simple. If you own an e-commerce store on the Internet selling hundreds and thousands of items a year without being incorporated with the many options you have as a business owner, could be financial suicide. Whether you sell DVDs, video games accessories, or drop ship audio merchandise on a yearly if you do not incorporate your e-commerce store you risk having to pay thousands of dollars at the regular maximum rate for taxes in the USA or in your country of residence. Not only that if you are not incorporated as a C-corporation, S-corporation or as an Limited Liability Corporation known as the famous and simple LLC- the possibilities of having to pay the likely 40-50% cut to Mr. Uncle Sam every April of every year are not possible, are empirical.
Total scrutiny if you ask many business owners that have seen the difference in tax cuts and are successfully with there fully worked incorporation. Having it as a wake-up call note, the financial risk you are having for not protecting your business and personal assets can be very, very damaging to your pocket. Whether you are making $500 a year or $140,000 plus a year in sales, it will be advisable for you to incorporate. Protection, huge savings and tax cut from the many loopholes the government already offers you, are gigantic- consult with your accountant or nearest advisor for getting the facts for your retail, wholesale distributor business or any other business endeavor you have already started. Giving you a fast early bird example- lets say that you sell eBay items and that you are also a consultant for your niche or sub-niche businesses.
At least here at Puerto Rico and potentially, at many US states- in those famous tax forms, you can deduct many of your expenses like food, gas tank, restaurant dinners while still getting to put your car monthly expenses and even house as tax deductible. Best of all, your deductions will not suffer or be deducted from your years growth income. Your income stays high, your growth income is counted and the possibility of paying the average 40-50% rate in April decreases greatly. You will have to consult with your tax advisor about the great positive loopholes that the US government has given for the incorporated. With a great educated and knowledgeable wholesale business accountant, taking advantage of these tax loopholes whether you are a retailer or wholesale distributor could mean the difference between a brand new car being fully paid with such savings or a Subway chicken soup savings. Decide early!.
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