I Started A Business Last Year - What Should I Know About My 2021 Business Taxes?

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Live webinar took place on 01-18-2022 @ 12:00 PM ET
Rick Bromund
Fran Gaither

For anyone who started a business in the last year or so, you've got plenty to worry about - don't let your business taxes be one of them. Join us for a 30-minute webinar with Rick Bromund, where he'll walk attendees through important tips for new businesses.

​Rick heads up the tax research team at ComplYant. He's an experienced professional in the tax industry and has previously held positions at Fortune 500 companies as well as one of the big 4 accounting firms.

Note: This topic covers U.S. business taxes only.

Recording Highlights

  • 1:49 - Important tax dates
  • 3:59 - How to keep good records?
  • 8:12 - What if I received a grant or loan?
  • 9:05 - Deductible business expenses
  • 10:20 - Separate business from personal
  • 13:27 - Review & verify

Q&A

How does the process work to file your business taxes?

Similar to individual taxes, again, if you're expected to file estimated taxes, you file those throughout the year as tax time comes you work with your tax professional, or if you're doing it yourself you just go through the process with the tax preparation, you submit your deductions, all your income information. So it's pretty standard to how individual taxes are filed. And if you're an LLC or a pass-through, you're filing your business taxes on your personal return.

How do tax write-offs work for an LLC versus a sole proprietorship?

Tax write-offs work the same way. Obviously the LLC versus the sole proprietor, there's no incorporation, so there's no, as far as the government sees, a division between personal and business. So the burden is probably gonna be on the sole proprietor to have really good impeccable records to show that these expenses if they're coming out of a personal account are for business and having a really good backup. But the deductions are the same, whether you're a sole proprietor or LLC corporation, your small business has deductions available to you.

Any new tax breaks for new companies?

As far as new companies, really what we're looking at right now is the startup costs. If you started a new company in the last 12 months, startup costs, and organizational costs will be deductions that are specific for new companies. Otherwise, pretty much you're gonna benefit from the standard business deductions that are out there. There are a bunch of them, again, we provided that website at irs.gov/credits-and-deductions. You can check it out there. There's a host of things to help small businesses. You know, it's not cheap and it's not easy to start a business. So they provide a lot of opportunities to deduct the costs that you face to kind of lower the barrier to entry.