Business bookkeeping services enable them to prepare for tax season and provide updated and accurate records to the stakeholders. It is essential because it indicates its financial health, status, performance, and picture. Every business must comply with the legal requirements to stay in governments’ and general publics’ good books. It signifies their credibility by serving the nation. Last-minute preparation, postponements, and procrastination can compromise the accuracy and quality of tax files. 

A startup must keep track of several deadlines in months leading to tax day. It will avoid potential errors, scrambles, and harsh consequences of last-minute preparation. It can also lead to penalties, fines, and even jail time in severe cases. A professional business bookkeeping services provider can assist you with timely preparation and accurate tax filing. Here are some critical tax deadlines that may apply to a startup in a financial year:

1099 NEC filing (Due date: January 31)

A business utilizes 1099 forms for vendors, contractors, and freelancers hired and paid at least $600 in a year. These forms must also be made available to these parties as copies. Sole proprietors, partnerships, and limited liability companies must comply with this requirement. Its filing date occurs at the beginning of the tax season because IRS verifies income that individual taxpayers report in their return to reduce fraud. 

If your business suffers from hardships, you can avail of 30-day extensions. However, you need to fill out a paper form and mail it to the IRS. You can use Gusto software to calculate correct amounts. 

San Francisco business tax: (Due date: January 28)

A company operating in San Francisco must file an annual business tax return with the city and County of San Francisco (unless they qualify for exemptions or their combined taxable gross receipts do not exceed $2 million). The annual business tax return for San Francisco-based businesses include the following taxes:

Gross receipts tax: The combined taxable gross receipt must include sales, rent, interest, royalties, dividends, licensing fees of more than $2 million. Certain firms can get exemptions.

Administrative office tax: The registered businesses with administration in San Francisco must calculate and pay a 1.4% tax on the payroll through business bookkeeping services. 

Homelessness gross receipts tax: Businesses whose gross tax receipt exceeds $50 million must pay an additional 0.175 to 0.69% tax. Administrative office tax becomes 1.5% on the payroll.