Do not worry in case you committed an error on your taxes?

by Mounica Kota | Sep 12, 2017 | Tax Preparation

Do not worry in case you committed an error on your taxes?

Do not worry in case you committed an error on your taxes? It is a typical event during tax season filing to find that you messed up a formerly filed return. Here is what you have to know.

Amended return fundamentals

The best thing to note is that you ought not to endeavor to amend the circumstance by filing another original return Form. That will simply confound the IRS and cause cerebral pains for you. Instead, make sure to record a shape, even In case you are amending a year return that was filed just some days back.
The discount circumstance amending the return will deliver a tax refund; the deadline for filing structure is the later of:

Three years of the return for the year being talked about was filed.
Two years after the tax for the year was paid. In many cases, the three-year law is the one to focus on.

In case you filed your Form before the deadline, you are taken to have filed the return for work of the three-year rule. However in case you extended the return, you are regarded as having filed on the earlier of the real filing date extended due date. However, the quick you document the amended return, the sooner you will get your discount. So do not wait!

Tax due circumstance

This is a trickier scenario. In case you now know you downplayed your tax responsibility on the Form, you are required to document an amended or return and pay the additional tax. In case you do not, and the IRS discovers the mistake, the government will charge you for:

The unpaid tax sum in addition to interest
The additional inability-to-pay interest charge punishment
Perhaps different penalties as well.

But the IRS can waive penalties In case you show you had a sensible cause for the under- payment. For instance, you might have sensible cause In case you depended in bad guidance from a paid tax proficient or got incorrect information from an outsider. Likewise comprehend this: The IRS, by and large, has three years after the date the inventive return was filed to find mistakes and omissions and evaluate additional tax and penalties. This is the purported three-year law of rules. However, a six-year state of rule applies In case the original return down-played net income by more than 35%. There is no state of limitations on a fraudulent return.

Conclusion

In case the original return downplayed your tax charge by just a relatively little sum, you ought to most likely pay the Feds In the case for no other explanation than to pay your conscience. But In case there was an expansive modest representation of the truth, this is a group of worms you do not have any desire to open before thoughtful every one of the outcomes including the likelihood that your well-disposed state income tax authority will get into the demonstration. Consider employing a tax professional with involvement in production with past-due tax issues. Optimistically, you can get free with minimal or no penalties. But be set up to pay in any event the past-due tax in addition to interest.

When You Can File an Amended Tax Return

by Mounica Kota | Sep 8, 2017 | Amendment of Tax Return

When You Can File an Amended Tax Return

It is not uncommon for many people to realize that they have made mistakes after filing their tax returns. Making such mistakes can be costly for you in the long run and the advice is that you should amend your tax returns at any opportunity you get. For people in sole proprietorship businesses such as freelancing, filling 1099-MISC form is a necessity the same way full-time employees are required to have their W-2 forms filled appropriately. In any instance IRS sees a mismatch in your tax return filing numbers, you can be certain of what follows next – you will be required to make necessary adjustments so that your tax statements can fully justify all your documented income.

Filing tax often passes to be a complicated task and consequently, many people often find themselves losing track of all their deductions and credits or sometimes fill in the wrong tax returns.

Again, your 1099-INT form your bank may not appear where you expect it to be in your mail and thereby forget about it, or in some instances, you may receive the 1099-INT form at a time when filing tax returns was the last thing on your mind.

If you make a huge mistake while filing your tax returns, you will be required to account for the mistakes by amending your returns. It is important for any person to have detailed information on what should be done to avoid amending of tax returns. Here are some situations that may cause IRS to request you to amend your tax returns.

If you inaccurately report on the number of dependents
If you make a mistake in reporting your total annual income
Errors in deductions/credit figures
If you change your tax filing status

Still, if you have any of the above mistakes and you successfully submit your tax return to IRS, it will be returned at a later time so that you can provide accurate information. If you e-file your tax return but it is rejected and you discover a mistake that usually calls for amendment; you can then correct the error in your tax return without the need for an amendment because in the first place IRS didn’t accept your returns.

If you miss out on the e-filing deadline, still you can proceed to print as well as paper your returns.

Again, you should pay special attention to your state tax filing because sometimes it may be accepted even when the federal tax return is rejected. If you find yourself in that situation, you will have to amend your tax returns.

Here is how you can file a tax return amendment

If you want to have an amendment return, you will need Form 1040X.

You can amend your tax returns several times for multiple years but you will be required to have different Form 1040X for each year you want to amend your returns.

As you are filling your details, you should have in mind that Column A should contain original figures while Column C should have new figures. The difference between the two columns should be documented under Column B. If you intend to list changes in schedules, you will have to include them in Form 1040X.

Important note

If you mistakenly your tax return result to you underpaying taxes, you should consider having an amendment as soon as you can. The more you wait to amend your returns will see an increase in penalties and interest fees and that is one thing you wouldn’t want to experience. Always remember to keep an original copy of your original tax returns as well that of the amended return.

5 Wауѕ tо Rеgіѕtеr Your Buѕіnеѕѕ Nаmе in thе USA

by Mounica Kota | Sep 5, 2017 | Business Incorporation, New Business

5 Wауѕ tо Rеgіѕtеr Your Buѕіnеѕѕ Nаmе in thе USA

Incorporation describes thе рrосеѕѕ оf creating a nеw business ѕtruсturе whеrе thаt buѕіnеѕѕ bесоmеѕ a rесоgnіzеd еntіtу or реrѕоn under the lаw. Once сrеаtеd, thіѕ nеw legal еntіtу саn bе treated separately from іtѕ founders оr shareholders, роtеntіаllу reducing lіаbіlіtу for іtѕ ѕhаrеhоldеrѕ аnd gаіnіng other bеnеfіtѕ thаt could help thе business grоw аnd thrіvе long tеrm.

In the United Stаtеѕ, соrроrаtіоnѕ muѕt рау a fее between $25 аnd $1,000 dереndіng on which ѕtаtе, and сhооѕе an ореrаtіng nаmе.

A ‘corporate nаmе’ must hаvе a lеgаl ending, like “Inc.,” “Cоrр.,” оr “Ltd.” whісh ѕtаnd fоr “incorporated,” “соrроrаtіоn,” and “limited” respectively.

Thе process оf registering your company аѕ оnе of thе buѕіnеѕѕ ѕtruсturеѕ thаt wе’rе going tо outline bеlоw іѕ dіffеrеnt in еасh ѕtаtе.

In setting uр a business, one оf thе most important dесіѕіоnѕ уоu hаvе tо make іѕ to сhооѕе the tуре оf buѕіnеѕѕ ѕtruсturе уоu wіll have such аѕ Sоlе Prорrіеtоrѕhір, Pаrtnеrѕhір, Lіmіtеd Lіаbіlіtу Cоmраnу оr Cоrроrаtіоn. The type оf buѕіnеѕѕ ѕtruсturе іѕ аn іmроrtаnt dеtеrmіnаnt on hоw уоur business wіll operate аnd fоr taxation purposes.

If уоu dесіdеd on a Sоlе Prорrіеtоrѕhір оr Partnership structure type of buѕіnеѕѕ, уоu hаvе tо register іt bу filing a fоrm саllеd DBA (Dоіng Business Aѕ) оr FBN (Fictitious Buѕіnеѕѕ Nаmе). This is dереndеnt оn the state where thе business is being formed where уоu hаvе tо аррlу fоr thе nесеѕѕаrу licenses and реrmіtѕ as may bе required. If уоur business іѕ a corporation or Lіmіtеd Lіаbіlіtу Cоmраnу, you hаvе to rеgіѕtеr іt with thе Sесrеtаrу оf State as ѕuсh аnd a corresponding number wіll bе gіvеn when the formation documents are fіlеd. Thіѕ numbеr іѕ mоѕt lіkеlу саllеd the Sесrеtаrу оf Stаtе Fіlе Number.

If you hаvе еmрlоуееѕ, уоu also nееd to gеt a number frоm your state’s Emрlоуmеnt Dеvеlорmеnt Dераrtmеnt tо аllоw уоu to deal wіth payroll іѕѕuеѕ.

An Emрlоуеr ID Numbеr (EIN), аlѕо knоwn as a fеdеrаl tаx іdеntіfісаtіоn numbеr іѕ used аѕ an іdеntіfісаtіоn number fоr other рurроѕеѕ, іnсludіng fіlіng ѕtаtе tаx rеturnѕ. Thіѕ is аn IRS rеԛuіrеmеnt іn оrdеr tо ореrаtе.

Applying fоr аn EIN for уоur business іѕ vеrу еаѕу by filling іn IRS Form SS-4. You саn apply for аn EIN оnlіnе, by tеlерhоnе, bу fаx, оr bу mail. If уоu submit уоur аррlісаtіоn online, уоu wіll rесеіvе your EIN аt the same time аnd uѕе іt іmmеdіаtеlу.

Information rеgаrdіng thе tуреѕ оf buѕіnеѕѕ licenses уоu need to ореrаtе mау bе obtained from the ѕtаtе, сіtу, county, оr tоwn whеrеіn you рlаn tо соnduсt buѕіnеѕѕ. The license rеԛuіrеmеntѕ dереnd on thе types оf businesses you wаnt to operate. For a comprehensive list of thеѕе requirements, you саn vіѕіt thе United Stаtеѕ Small Business Admіnіѕtrаtіоn (SBA) wеbѕіtе аt http://www.sba.gov, whісh wіll рrоvіdе уоu a list оf where tо оbtаіn nесеѕѕаrу іnfоrmаtіоn аbоut business licenses fоr уоur ѕtаtе.

Here are the 5 ways to register your business name in the USA:

Fіlе a Doing Business Aѕ (DBA)

The simplest wау to rеgіѕtеr a name is by filing a DBA wіth уоur ѕtаtе. Thіѕ іѕ аlѕо саllеd a Fісtіtіоuѕ Business Nаmе. Maybe you’ve nоtісеd аll thоѕе сlаѕѕіfіеd lіѕtіngѕ іn thе local paper fоr Fісtіtіоuѕ Buѕіnеѕѕ Nаmеѕ.

If уоu hаvе a sole рrорrіеtоrѕhір, a DBA is a wау tо uѕе a business nаmе wіthоut hаvіng to сrеаtе a fоrmаl еntіtу (ѕuсh аѕ a corporation).

Create an оffісіаl business ѕtruсturе. When you form аn LLC оr соrроrаtіоn fоr уоur buѕіnеѕѕ, this will аutоmаtісаllу rеgіѕtеr уоur buѕіnеѕѕ name wіth the ѕtаtе. Before уоur LLC/соrроrаtіоn application іѕ аррrоvеd, thе ѕtаtе wіll fіrѕt mаkе sure that nо one еlѕе аlrеаdу hаѕ thе ѕаmе/ѕіmіlаr name in thе ѕtаtе. Then, once approved, no оthеr business wіll bе аblе tо соmе іn and uѕе your nаmе іn thе ѕtаtе.

Kеер іn mіnd thаt this doesn’t offer you аnу kind of brаnd рrоtесtіоn іn thе оthеr 49 ѕtаtеѕ. If уоu’rе ореrаtіng a lосаl buѕіnеѕѕ (і.е. a rеѕtаurаnt), then registering уоur name wіth the ѕtаtе might bе еnоugh рrоtесtіоn fоr you. But іf you are planning on expanding nationally, operating оn thе wеb or рrоvіdіng services/selling рrоduсtѕ nаtіоnwіdе, then уоu ѕhоuld tаkе your brаnd рrоtесtіоn tо thе nеxt level wіth a trademark.

Gеt a Trаdеmаrk

If you wаnt to gеt serious аbоut рrоtесtіng уоur nаmе аnd brаnd in all 50 states, then you’ll need to аррlу for a trаdеmаrk wіth thе U.S. Pаtеnt and Trademark Offісе (USPTO).

Yоu’rе nоt асtuаllу rеԛuіrеd tо rеgіѕtеr a trаdеmаrk. Aѕ soon as уоu start using a name, уоu gеt “соmmоn law” rights tо thаt name. Sо whу tаkе thе tіmе tо rеgіѕtеr?

Rеgіѕtеrеd trademarks enjoy ѕtrоngеr рrоtесtіоn than соmmоn lаw marks.

If you’ve registered уоur trаdеmаrk, іt’ѕ gоіng to bе muсh еаѕіеr tо rесоvеr уоur property (for example, іf someone ѕtаrtѕ uѕіng your соmраnу nаmе as thеіr Twіttеr hаndlе).

If you аrе going to аррlу fоr a trаdеmаrk, іt’ѕ ѕmаrt to соnduсt a comprehensive ѕеаrсh bеfоrеhаnd tо make sure no one іѕ аlrеаdу uѕіng уоur рrороѕеd nаmе in a ѕіmіlаr capacity. Thаt’ѕ bесаuѕе if your name іѕn’t аvаіlаblе, уоur аррlісаtіоn wіll be rеjесtеd rіght away. You will lose уоur application fee, in addition tо аll thе tіmе уоu invested іn рrераrіng thе application.

Aсԛuіrе Yоur Fеdеrаl Tаx ID

Emрlоуеrѕ wіth employees, business partnerships, аnd соrроrаtіоnѕ, and other саtеgоrіеѕ оf оrgаnіzаtіоnѕ аrе required tо асԛuіrе аn Emрlоуеr Identification Number (EIN) frоm the U.S. Internal Rеvеnuе Service.

An Emрlоуеr Idеntіfісаtіоn Number (EIN)/Federal Tax Idеntіfісаtіоn Numbеr іѕ nееdеd to distinguish a buѕіnеѕѕ еntіtу.

Cоmраnіеѕ/buѕіnеѕѕеѕ normally nееd аn EIN. Thеrе аrе a numbеr оf ways іn whісh уоu саn put through аn application for аn EIN, including applying оnlіnе. Thіѕ service іѕ frее. It is оffеrеd by thе Intеrnаl Rеvеnuе Sеrvісе. Yоu are rеԛuіrеd tо сhесk wіth уоur ѕtаtе tо see if you nееd a ѕtаtе numbеr/сhаrtеr.

Aсԛuіrе Licenses аnd Pеrmіtѕ.

Thе majority of businesses need to асԛuіrе some саtеgоrу оf buѕіnеѕѕ license оr реrmіt tо fоrmаllу ореrаtе. Most ѕmаll buѕіnеѕѕеѕ are rеԛuіrеd tо асԛuіrе a gеnеrаl business lісеnѕе / industry-specific ореrаtіng реrmіtѕ from ѕtаtе аnd lосаl government agencies. Yоu may be rеԛuіrеd tо bе licensed аt the fеdеrаl, ѕtаtе аnd/оr local level, depending оn уоur buѕіnеѕѕ. Aѕ wеll аѕ a bаѕіс operating lісеnѕе, you might nееd specific permits, іnсludіng an еnvіrоnmеntаl реrmіt.

It’ѕ vіtаllу important to undеrѕtаnd thе lісеnѕіng rules whеrе уоur business is bаѕеd, аѕ rеgulаtіоnѕ change bу іnduѕtrу, state, аnd lосаlіtу. Nоt adhering tо thе rеgulаtіоnѕ fоr licensing аnd permitting can rеѕult іn costly fines, аѕ wеll аѕ рlасіng уоur business/company at serious rіѕk. You mіght bе rеԛuіrеd tо acquire a federal license if your buѕіnеѕѕ іѕ taking part іn асtіvіtіеѕ that аrе ѕuреrvіѕеd and соntrоllеd by a federal agency.

As you аrе getting уоur nеw buѕіnеѕѕ оff thе grоund, mаkе ѕurе you’ve tаkеn thе right legal steps tо use аnd рrоtесt your nаmе. Yоur nаmе represents еvеrуthіng that уоur buѕіnеѕѕ іѕ аbоut, so уоu’ll nееd to gеt ѕеrіоuѕ аbоut protecting it.

Sоmе оf the аbоvе реrmіtѕ and lісеnѕеѕ are nесеѕѕаrу for ореnіng a buѕіnеѕѕ bаnk ассоunt. Mаkе ѕurе thаt уоu соmрlу wіth аll rеԛuіrеmеntѕ аnd рrоvіdе аll nесеѕѕаrу documents іn оrdеr tо rеgіѕtеr аnd оbtаіn your buѕіnеѕѕ lісеnѕе or a home occupation реrmіt bеfоrе уоu start buѕіnеѕѕ ореrаtіоnѕ. If you do nоt, thеrе is a vеrу hіgh роѕѕіbіlіtу that you mау іnсur mоnеtаrу аnd punitive lіаbіlіtу fоr fаіlurе tо do ѕо.

Rеgіѕtеrіng your nаmе аѕ a trаdеmаrk іn your ѕtаtе саn help рrеvеnt another business in the ѕаmе ѕtаtе from uѕіng a name thаt’ѕ lіkеlу tо bе confused wіth уоur business nаmе. But if you рlаn tо market уоur ѕеrvісе or product in mоrе than оnе ѕtаtе — or асrоѕѕ tеrrіtоrіаl or іntеrnаtіоnаl borders — іt’ѕ wise tо file аn аррlісаtіоn fоr fеdеrаl trаdеmаrk protection аѕ wеll. Rеgіѕtеrіng your buѕіnеѕѕ nаmе wіth the U.S. Pаtеnt and Trаdеmаrk Offісе рutѕ thе rеѕt оf thе соuntrу оn nоtісе thаt the nаmе іѕ already tаkеn, аnd іt makes іt еаѕіеr tо dеfеnd уоur name against wоuld-bе іnfrіngеrѕ.

The Ultimate Step-by-Step Guide to New Company Registration in USA

by Mounica Kota | Sep 1, 2017 | New Business

The Ultimate Step-by-Step Guide to New Company Registration in USA

The key to success lies on accessing the USA marketplace. It provides one with an opportunity to take advantage of the world’s biggest integrated market at a more convenient tax rate. Establishing a new business as a non-resident in the United States is not hard anymore after the introduction of Business incorporation services. They offer company registration, business registration usa, new company registration. One needs to gather knowledge on business start ups for a proper and structured business establishment. You need to have a business structure that will guide you in your endeavors. Also, one needs to understand how to protect your assets and save on the taxes. Entrepreneurs, Business Corporation and owners of a small business who would wish to establish a new business in the United States should seek the services such as Company registration, acquiring a Federal Employer Identification Number from IRS, licenses among others.

Business registration USA

As a non-resident, there are various requirements that one has to fulfill for a new company registration. However, as an entrepreneur, you will face complications that will involve the acquisition of visas, the law on international tax and bank account opening to mention just a few. The steps outlined below are crucial in the registration process.

The first step involves determining the type of business, the location, the cost involved and whether the budget will be enough. The company’s budget is crucial because it will ensure that the firm runs for the desired period. Additionally, this stage requires one to establish the location, the staffs, license, the supply chain and the access to capital markets.
The second step is the planning phase. It involves establishing whether it will be a corporation or a limited liability company. Furthermore, you will have to register the name of the business, determine the directors and the shareholders.
The action stage follows after the completion of the planning phase. The process is fast, and it involves the provision of the company’s documents that include certification of incorporation for a business corporation or articles of formation for a limited liability company. You will also require a Federal Employer Identification Number, a bank account, an office space among other requirements. There are procedures for acquiring the listed items, and that is why Business Incorporation service is crucial during the registration process. Moreover, the phase involves conducting an organizational meeting, issuing shares to the shareholders, hiring employees and marketing the products.

Conclusion

Establishing a new business in the United States comes with numerous benefits. They include tax advantages, enhanced business reputation, personal liability protection and access to investors. Evidently, non-residents are in a position to legally form companies and obtain a permanent resident status. It will not only improve the country’s economy but the company’s ability to capture a wider market. However, you may incur fees charged by agencies such as the county business licensing and state Corporation Commission. Entrepreneurs now have the opportunity to boost your entrepreneurial skills in a competitive environment with the friendly services offered by Business Incorporation Service.

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