Managing your personal business has a multitude of benefits, including the knowledge and ability to create your own schedule and choose your own clients. A downside, however, that many first-time entrepreneurs underestimate is the necessary task of paying income and additional taxes. There are a few steps that you can take to make this task stress-free and completed quickly:

Proper Maintenance and Securing of Records

It is critical that you understand how much revenue your business generates in a given year. Your records should also display how much was paid to your employees, merchants, and other outside parties. These factors will help accurately determine how much your business owes in taxes, as well as what types of credits or deductions it may be entitled to. To make it easier on yourself, you can hire a tax accountant for tax planning services who can strictly maintain a record for your income tax return.

Choose the Most Beneficial Tax Strategy

An organization can be taxed in many different ways. For smaller organizations that only have one or two owners, it may be beneficial to use the LLC structure. Those who want to operate as an LLC don't usually have a shareholder's agreement or file as one of the various forms with state or federal government agencies.

However, if you are looking for the easiest way to file your business taxes and income tax returns, it may be wise to identify your business as a sole proprietor and file your business through the use of Schedule C, which doesn't automatically increase your risk of being audited.

Request for Records

If Form 1099 is missing from a client then don't be afraid to ask for another copy. Asking the IRS for copies of any forms that it may have on hand is also another option to ensure that your files are accurate, up-to-date, and match with what other sources already have. The most important piece of advice is that you keep in contact with your clients and request information that is recent and updated, even after any recent changes. In the situation that you make a mistake when filing a tax return and tax income, the IRS could decide to audit that return or otherwise claim that you owe extra money. Your clients could face an audit if they rely on Form 1099 that had mistakes on it when filling out their tax returns.