###### TAX & COMPLIANCE SERVICES # Business Tax Services Check off tax filing without taxing your resources. Paro’s small business tax services help you save money and hours with the help of certified CPAs and tax preparers. ## Lighten the Load on Business Tax Preparation Take your team out of filing mode and put them back into what matters. Our experts help your business file federal and state income tax returns at any level of complexity. ##### With Paro on board, life at tax time looks different: - ### No more “hot potato” among team members who lack time or tax expertise. - ### An expert on hand who ranks among the top 2% in finance and accounting. - ### Knowledge of tax law changes, so you don’t miss out on deadlines or savings. - ### The ability to easily combine bookkeeping and tax services. _“Our Paro tax consultant has been extremely helpful in correcting past filing issues, state unemployment and tax issues. He ensures all deadlines are met and filings done accurately.”_ – Jonathan M., President ### Make Tax Filing Easier and Faster Get matched with a seasoned tax expert today who understands your unique filing needs. [schedule a free Consultation](https://paro.ai/paro-solutions/) ## Tailored Tax Services for Any Organization The tax code is a labyrinth that our experts are well-prepared to navigate—no matter what nuances apply to your industry, business size, [sales tax nexus](https://paro.ai/blog/sales-tax-nexus-master-complexities-ensure-compliance/) or structure. Our tax experts bring years of experience filing federal and state tax return forms and maximizing your [tax write-offs](https://paro.ai/blog/tax-questions-small-business/). The most common type of corporation. #### Tax rate Corporate **Key filings** Form 1120 Subject to strict restrictions around ownership. #### Tax rate Personal **Key filings** Form 1120-S Added complexity due to tax classification options. #### Tax rate Varies ##### Key filings Form 1040, Form 1065, Form 1120, Form 1120-S The default classification for people who earn business income but aren’t incorporated. #### Tax rate Personal + Self-Employment ##### Key filings Form 1040 (Schedule C) Must adhere to special criteria around business and bookkeeping practices. #### Tax rate Tax-exempt ##### Key filings Form 990 Taxable income flows through each partner’s personal tax return. #### Tax rate Personal + Self-Employment ##### Key filings Form 1065 _“The Paro tax expert ensured that I paid the least tax possible under the tax code and gave me insight on how I might be even more efficient in years to come.”_ – Bobby S., President ## Who’s Best for Your Tax Needs? Whether you need simple filing or representation before the IRS, our business tax services are conducted by qualified tax preparers, CPAs and enrolled agents, so you can hire the right individual for your needs. Watch our guide on the types of tax professionals for hire. ## Ensure Compliance With Additional Bookkeeping & Tax Support File business taxes with greater trust in your books. Guarantee better accuracy and even better savings by combining broader bookkeeping services with tax services. Prevent tax bottlenecks and errors from the very start. - #### Accounts payable and receivable - #### Payroll - #### Financial statements and reporting - #### Account reconciliations Improve your IRS standing and maximize your savings. - #### Tax documentation review - #### IRS dispute resolution - #### Tax advisory and planning ## Learn about our **[bookkeeping services ›](https://paro.ai/accounting-bookkeeping-services/)** ## The Ultimate Business Tax Help Center Your one-stop shop for tax resources, from deadlines and filing requirements to year-round tax planning. [GET EXPERT TAX ADVICE](https://paro.ai/resources/tax-help-center) ### FAQ #### What tax does a small business pay? The amount in small business tax that you pay depends on several factors, starting with your business entity. For instance, sole proprietorships pay personal income tax and self-employment tax, whereas C corporations pay a corporate tax. After you determine your tax rate, you have to factor in things like payroll, sales tax, deductions and other benefits and obligations on a case-by-case basis. We wish it were simpler, but that’s why we’re here to help. #### What are the challenges of filling out a tax return? Business tax returns pose several challenges, particularly for small businesses. First, it can be difficult to discern which forms you need, especially if you have underlying issues that require amendments or extensions. Second, tax forms are riddled with complex government and financial jargon. Timing is another issue: it’s crucial to know which tax deadlines are pertinent to you and how extensions work. And finally, accuracy. Subpar bookkeeping makes filing business taxes an extremely arduous process. #### What is a Tax ID Number for a business? Also known as your [Employer Identification Number (EIN) or federal tax ID number](https://paro.ai/blog/business-tax-id-number-tin-vs-ein/), your business tax ID number is a unique number the federal government uses to identify your business. It’s assigned when you incorporate. Sole proprietorships use the owner’s social security number as the business tax ID. #### When are business tax returns due? Different business entities have different due dates for their various obligations, and the exact dates change each year. [The IRS website is a good place to start for a general idea of dates](https://www.irs.gov/faqs/small-business-self-employed-other-business/starting-or-ending-a-business/starting-or-ending-a-business-3#:~:text=The%20corporate%20tax%20return%20is,and%20exceptions%20to%20due%20dates.), but when you hire a Paro tax specialist, you won’t need to worry about any of them. #### How do business tax deductions work? Business tax deductions, also known as “write-offs,” are qualifying expenses you can claim on your tax return to reduce your taxable income and therefore reduce the amount of tax you pay. You need to report your expenses by category, such as travel, meals and entertainment, utilities, etc. There are specific rules around which expenses qualify and how much you can claim in deductions for each category. To save effort at tax time, keep track of relevant expenses by category all year long, and save your receipts for at least three years in case of an audit. #### What does “tax exempt” mean for a business? It means the business isn’t obligated to pay income tax. There are specific requirements to qualify for tax-exempt status, which usually applies to charitable, religious and social welfare organizations. [See a complete breakdown of tax-exempt organization types from the IRS](https://www.irs.gov/charities-non-profits/types-of-tax-exempt-organizations).