Form NC-5

In North Carolina, all employees are required to complete the Employee's Withholding Allowance Certificate.

This form helps determine the amount of state income tax that should be withheld from their paychecks.

Form NC-3

It's used to report the total amount of state income tax that was withheld from employees' paychecks throughout the year.

The form is basically a summary of all the income tax that was taken out of employees' pay, and it helps the state keep track of how much money has been collected.

Form NC-4

Upon starting a new job, your employer will hand over a form to you, which requires certain personal details such as your marital status, the number of dependents and eligible deductions

This form helps your employer calculate the accurate amount of state income tax to be withheld from your paycheck

The main objective of this form is to ensure that you neither overpay nor underpay your state income tax during the year.

Form NCUI 101

Businesses are required to file this form every quarter to report the total amount of wages paid and the unemployment taxes owed.

The information on this form is used by the state to determine the amount of unemployment benefits that should be paid to eligible workers.

Form W-2

Form W-2 is a tax form that employers in the United States are required to give to their employees every year.

The form summarizes the amount of money an employee earned throughout the year and the taxes that were withheld from their paychecks.

Employers must provide Form W-2 to their employees by January 31st of the following year, and the employees must use it to file their income tax returns with the Internal Revenue Service.

An accountant is a qualified expert who focuses on managing, categorizing, and interpreting financial data for individuals or organizations.

They deliver services such as bookkeeping, preparing financial statements, and filing tax returns.

A certified public accountant (CPA) is an accountant who has completed specific education, work, and test criteria to secure a license from a state board of accountancy.

Along with handling accounting duties, a CPA can conduct audits, examine financial statements, offer tax planning and consulting services, and represent clients before tax agencies like the IRS.

Take advantage of tax deductions

Businesses can decrease their tax bills by utilizing tax deductions, which are expenses that businesses can subtract from their income, such as rent for office space, equipment purchases, employee salaries and benefits, travel expenses, advertising and marketing expenses, and charitable donations.

By accumulating and tracking these expenses throughout the year, businesses can enhance their deductions and decrease their taxable income.

For instance, if a business made $100,000 but had $20,000 in deductible expenses, their taxable income would reduce to $80,000, reducing their taxes.

It's crucial to note that businesses need to fulfill specific requirements to be eligible for tax deductions and that not every expense is deductible.

Use tax credits

Tax credits can be more advantageous than tax deductions since they directly reduce the amount of taxes a business owes.

Tax credits work as a dollar-to-dollar deduction in the tax amount.

For businesses in North Carolina, various tax credits are available if they do specific things, such as employing new workers, investing in sustainable energy, or undertaking research and development.

However, to be eligible for these tax credits, businesses must complete criteria and adhere to specific regulations.

Maximize retirement plan contributions

To save money on taxes, businesses can maximize their retirement plan contributions.

Employees may allocate a portion of their earnings to retirement plans, such as 401(k)s or individual retirement accounts (IRAs), which brings down their taxable income.

Likewise, employers can contribute to their staff members' retirement plans, which can be tax-deductible for the business.

By offering retirement plans and contributing to them, businesses can reduce their taxable income, ultimately minimizing the taxes they are liable to pay.

Keep track of inventory

Maintaining accurate inventory records is important for businesses to keep track of the products they have in stock.

It helps them avoid making errors while reporting excess inventory as income, which would result in paying more taxes.

Besides, proper inventory management assists businesses in identifying slow-moving or outdated products.

This knowledge helps them make informed decisions, prevent losses, and stay profitable.

Structure the business as a pass-through entity

One way that business owners can lower their taxes is by structuring their business as a pass-through entity.

A pass-through entity is a type of business structure where the business income is not taxed at the corporate level, but instead "passes through" to the owners and is reported on their personal income tax returns.

This can result in lower taxes for business owners because the tax rate for individuals may be lower than the tax rate for corporations.

Additionally, pass-through entities may be eligible for certain deductions and credits that are not available to corporations.

However, it's important to note that the specific tax benefits of a pass-through entity will depend on various factors such as the business's income, expenses, and structure.

Starting your own landscaping business requires some basic equipment, knowledge, and most importantly passion.

You can choose between working under your own name for tax purposes or filing for a DBA to establish a business name.

If you're a sole proprietor, you can use your personal bank account and don't need to obtain an EIN from the IRS.

However, since accidents are a looming risk when using heavy machinery on clients' properties, it's highly recommended to set up an LLC to protect your personal assets from any possible lawsuits.

An LLC ensures that only your business assets can be collected in case your company faces any legal claims.

To establish an LLC, you need to file for an EIN from the IRS website and open a separate bank account.

Keeping your personal and business finances separate is crucial to enjoy the benefits of liability protection that come with an LLC, as failing to do so might make your personal assets vulnerable to court action.

If you're considering funding for your business expansions or capital investments, there are several financing options to choose from.

Some choices are:

1 - Business Loans

Business loans are a reliable way to access funds necessary to expand your business.

In essence, you borrow money from a lender and repay it over time with interest.

Business loans are offered by banks, credit unions, and other financial institutions.

You can use the money to invest in your business, such as purchasing new equipment or expanding your workforce.

To apply for a business loan, you typically need a solid business plan and an excellent credit history.

2 - SBA Loans

SBA loans are available through lenders such as banks and credit unions, and are backed by the U.S. Small Business Administration.

SBA loans have some advantages over traditional business loans, such as requiring lower down payments, having longer repayment periods, and more flexible eligibility criteria

Furthermore, SBA loans typically have lower interest rates, which can be beneficial for small business owners who may not qualify for traditional loans.

3 - Crowdfunding

Crowdfunding is an excellent way to raise money for your business by getting support from a large group of people through an online platform.

These people can be anyone who is interested in your business idea and willing to contribute financially, including friends, family, and even strangers.

Crowdfunding comes in different types, such as rewards-based crowdfunding where supporters get a product or service in return for their contribution, or equity crowdfunding where supporters get a share of ownership in your business.

One of the major benefits of crowdfunding is that it enables you to access a wider audience of potential investors that might not be reachable through traditional financing options.

Additionally, crowdfunding can function as a way to test the market and receive vital feedback from potential customers.

4 - Venture Capitalists

Venture capitalists are investors who fund startups or small businesses that have high potential for growth, in exchange for a portion of the ownership in the company.

They usually invest in businesses with unique products or services, a capable team, and the potential to scale quickly

To secure venture capital funding, you'll need a well-defined business plan, a clear roadmap for growth, and a management team with a proven track record.

Venture capitalists will also typically want to see evidence of customer interest and market traction.