In this article, we will provide you with a checklist consisting of 19 pointers stating the document types which are required by Start-up companies for tax filling. Since you are new to the segment, we will also provide you with a brief guidance manual to educate you on the lines of the payments of taxes so that you get a clear knowledge and understand of this procedure of tax filling.
19 Document Checklist for Startup Tax Filing
Among the stress of hiring employees, operating a workforce and managing the accounts, one vital step which many youngsters opting for a start-up company forget is the process of tax filling. This is because there is not an immediate requirement for the payment of taxes to the government, as most of the taxes charged are annual. However, you mustn’t neglect this vital procedure otherwise it might cast a big hole in your pocket and overburden you with penalties and fines.
Here is the checklist consisting of the 19 documents which you need to keep in handy for the tax filling procedure:
- Employment Identification Number (or the EIN Letter)
- Article of Organization
- Memorandum of Association (also referred to as MoA)
- Operating Agreement
- Accountable Plan
- S Corporation Election (if any)
- K-1s (if any)
- Bank Account Number and Routing Details
- Legal Information of the Shareholders of the company (if any) including their names, address, the percentage owned, email ids, contact numbers, sum capital invested and social security numbers (SSNs).
- Cash Balances
- Bank Statements
- Credit Card Statements
- Loan Statements mentioning the clearance of the dues
- Health Insurance Premiums paid statements as well as Health Reimbursement Arrangements (HRA).
- 1099 MICs
- 1099 Ks
- 1099s, W2s and W3s
- Payroll summaries stating the salaries released, deduction made and taxes paid previously (if any).
- 401K Plan documents.
Thus, these were the 19 important documents which you need for tax filling. If you have any queries regarding any of the above-listed document names, you can always feel free to surf the net to further investigate into the document types listed above.
Types of Taxes
After having acquainted you with the 19 important documents checklist for start-up companies, let us take a look at the types of taxes which these companies are usually bound to pay the government. Note that it is important for you to have a piece of knowledge on the various types of taxes charged by the government since you will have to apply to the payments of all the below-listed taxes.
- Income Tax: This type of taxes is the sum charged on the gross income after the expenses for the business development and execution are cut off.
- State Income Tax: Based on the state where your start-up is functional, the government charges you with a sum amount to be paid as taxes. Small and economically backward states would likely cost you lesser taxes whereas the state big metro politans would incur heavy taxes on your company.
- Federal Income Tax: All business corporations, whether they are small setups, start-ups or big firms are bound to abide by this tax filling procedure irrespective of any profits earned. Even if your start-up is not working but has been registered as a legal business firm, you are bound to pay the federal income tax annually.
- Franchise Tax: This type of tax is charged by the government based on the net worth or the capital held by the firm or the start-up.
Thus, tax filling could be a hectic as well as a time-consuming procedure but proper knowledge from GCC Fillings and list of documents in hand could ease up the procedure and prevent much of your energy and time from draining off. GCC Fillings not just gives you proper guidance for the tax filling procedure but also ensures services like accounting, audit and filing returns for your company within the confines of UAE.