When people think of taxes, they often think of a menacing chore that must be completed precisely in order to avoid dire consequences. The thing to keep in mind here is that while it’s certainly true that you should take the time to carefully complete your tax returns, not all states are equal when it comes to taxes. That means, in other words, that some states are more favorable with regard to taxes than others. As a small business owner and entrepreneur, it’s important that you are aware which states are the best for taxes.
Business Friendly States
Wyoming and South Dakota are two of the most business friendly states in the United States. Lower wage taxes, for example, make these states particularly appealing to entrepreneurs and workers alike. If you’re living in either of them, make sure you’re taking the necessary time to read up about your local and state laws in order to ensure that you’re paying the right amount in taxes and are neither overpaying nor underpaying. Keep in mind that this advice goes for any state: learn about your state taxes! This cannot be emphasized enough.
Federal Tax ID
Have you read up on your local laws and are ready to to start filing your taxes? It is overwhelming so a few options are to hire a CPA or alternatively, you can use a software program to file your free 2016 taxes . Make sure that you have your Federal Tax ID all sorted out! You must have a Federal Tax ID of some sort in order to file your taxes, be it an EIN or an ITIN. Whichever one best fits your needs, take the time to fill out the application (you can do so by filling out your ein application online via the IRS website) and secure your number before taxes are due.
Looking to apply for a tax ID number? Start a business? Visit GovDocFiling.com for more.
Image Source; Image Source