Small business ownership has a lot to offer, including independence, flexibility, and rewarding personal fulfillment. You didn’t start your business on a whim; you’ve poured a lot of passion, energy, and commitment into growing your small business. All of that’s important and empowering, but the taxman cometh. There are important New Jersey business-tax concerns for you to consider.
Income tax can get tricky, and it’s where most small-business owners get tripped up. Ironically, small businesses often find it most difficult to keep up with their income tax obligations when they’re growing rapidly and, thus, reinvesting. Even though you are spending against profit, it doesn’t reduce the amount you owe on your taxable income as it comes in.
There are six basic factors that affect your property taxes for your New Jersey business:
- Your business’s market value;
- Your municipality’s program and service costs;
- The cost of your public schools;
- The availability of alternative municipal funds to cover these costs;
- The number of tax-exempt properties present in your municipality; and
- The overall value of your municipality’s taxable properties.
You, of course, want to grow and improve your business; that also ups your property taxes, however. It’s important to weigh improvements against added tax expense to ensure that you’re coming out ahead.
As a business owner, it’s your responsibility to collect tax on your sales. Issues with sales taxes account for nearly 90 percent of New Jersey business audits. Nobody wants to be audited. Stay on top of your sales tax at the point of sale and make sure that your payments are timely and compliant.
New Jersey has a use tax which refers to sales tax that wasn’t paid on out-of-state of online business purchases. If you don’t have to pay the full sales tax at the point of sale, save your receipts and make sure you fulfill your obligation to cover the sales-tax difference to the Garden State. If you don’t and you’re audited, you could be negatively affected.
Gas taxes recently rose 23 cents a gallon in New Jersey (the first increase in nearly 30 years), which can affect your customer base – who may decide to stay closer to home. It also affects what you’ll pay on deliveries, an important expense in many small businesses. Factor this significant change into your business budget.
You’ve worked hard to make your business a success. The best way to grow your business is to work it, plan scrupulously, and stay compliant with New Jersey tax laws. Running a small business is not easy, but it’s worth it. An experienced business law attorney can help.
If You Have Questions about Your NJ Business Taxes, Call 732 238-8686 for More Information Today
Running a small business is hard enough; you shouldn’t have to master nuanced tax laws as well. If you have business-tax questions, Bowne Barry & Barry Attorneys at Law has answers. Our business law attorneys have the experience and skill to help you grow your small business and to comply with New Jersey tax laws. For business-tax guidance, please contact or call the law office of Bowne Barry & Barry at 732 238-8686 today.