8 Free Tax Resources for Small Businesses

 
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For small businesses, filing taxes can be expensive. In addition to having to pay taxes, the cost of running the accounting and bookkeeping process is pricey—almost half of all small businesses pay over $5,000 per year in legal fees and internal costs.

What’s worse, it’s time consuming, and small businesses have to think about year-round. Payroll tax, for example, is an issue when hiring a new employee—something that can happen at any time of year, not just tax season.

Luckily there are more free tax resources than ever. No matter what your tax tech stack looks like, odds are there are some tools and resources that can lighten the load—saving you both time and money.

How to Form a Limited Liability Partnership

 
 

 

Like a General Partnership, Limited Liability Partnerships permit management rights to partners.  While these management rights aren’t afforded to Limited Partners in an LP, an LLP allows partners to enjoy the liability protection and tax benefits of a Limited Partnership.

LLPs are particularly beneficial to firms engaged in the legal, medical, accounting, engineering or architectural professions. A partner in an LLP is personally liable for his/her own debts and obligations resulting from negligence, malpractice or misconduct. However, they are not liable for any debts or obligations of his/her partners.

Like Limited Partnerships, LLPs also avoid “double taxation.” They are not taxed at the business/corporate level and instead are “passed through” to only be reported on their personal tax returns.

Limited Liability Partnerships are regulated at the state level, and as such, the process to LLP formation varies. There are, however, basic steps that all states require to form a Limited Liability Partnership. Follow along as we guide you through these steps.

How — and Why — to Keep Your Business and Personal Accounts Separate

 
 

If you own a small business, you may be tempted to commingle your business and personal accounts, but doing so may bring some unwanted consequences. The way to avoid this is to form a separate financial identity for your business, and never tap those accounts for personal use. In fact, IRS Publication 583 [PDF] states that one of the first things you should do when starting a business is to open a business checking account. Here are some of the other benefits you can achieve by keeping your accounts separate.