Will IRS Changes Affect Your New Franchise?
The government and your business; taxes, legal changes, and more – it’s adjustments that business owners are hoping for and simultaneously dreading almost every year. Because so much can change (and so quickly), they’re on the lookout to see how they’re business might be affected at any given time. The issue, however, is knowing just when things might change, and whether or not they will fall in your favor.
For instance, a law can look great from the outside, but take on a last-minute change in which taxes will hike. Or, your side might be on the seemingly losing side, only to rally last-minute, leaving you with a tax break. The point is, the US Government is a large entity … that doesn’t always have a clear path. However, it still greatly affects your business, no matter which way things turn out.
As a franchisee, it’s a good idea to stay up to date on all the latest IRS info. That way you’re well prepared come voting season. But you’re also not blindsided if hit with a large fee… or just the threat of one.
The IRS and Your Business
Bottom line is that the IRS will most definitely affect your business. You will, at some point or another, be forced to act upon their rules. Likely by paying taxes, registering workers, adjusting health care, etc. But more so than that, you’re going to be stressed out about what the IRS may or may not do. This is a part of business ownership, and it’s a part of making money within America. You dealt with this at your previous jobs, too, now you’re just the one in charge of the business. And therefore, footing the bill.
How to Stay Prepared
With a recent president and laws that are likely to be changing by the day (that is, if they haven’t already), it’s a good idea to make friends with your accountant. Ask them to stay ahead of the curve and to update you on new changes (especially expensive ones). Your lawyer is another person to keep in the loop. That way you’re sure your franchise is following all necessary laws, and up to date on tax fees, and more.
Ask their advice, but it might be a good idea to set aside some “just in case” funds so you aren’t strapped when taxes are due. This is especially true for your first year in business, as the setup of self-paid taxes will be a new one. However, if you’re familiar with quarterly taxes, though you know what to expect, you should also prep for sudden bouts of business. Because, the more you make, the higher your fees will grow. It’s a step that might sound daunting, but it’s one that settles with time in business; you’ll soon develop a routine and know what to expect from your IRS bills, too.
This setup will also utilize your team, and minimize the time you spend on finding out what’s changing in the world of numbers.
When just getting started, it can be hard to know what will go down come tax season. By staying well informed and keeping those on your team who are professionals (accountants and lawyers, etc.), you can help eliminate stress and better prepare for your upcoming taxes.
Check in with your respective professionals, and keep your eye on upcoming changes to best prepare when opening new franchises.