Seven States With No Income Taxes
Although April 15th (Tax Day) is now behind us, deciphering ongoing tax implications can be a complicated ordeal for organizations. For instance, tax rates should be strongly considered if your business is relocating or opening a new location. Seven states 1 (Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming) in the United States have no income taxes. However, each state does have its own specific nuance for corporate and resident taxes. Nevada does not have corporate or state income tax. South Dakota does have a corporate income tax, with most of the state’s revenue coming from sales and property taxes. If you’re looking at Washington, keep in mind that gross receipts taxes can be as high as 10.4% in some cities.
Be Proactive: Establish A Plan
Efficient tax planning 2 and preparation should occur all year long. In fact, proper planning and being proactive outside of the busy tax season are just as important making the right business decisions. Instead of only meeting with your financial advisor right before tax season, try having multiple meetings to plan for long term goals. Plus, you may find that there are feasible opportunities to reduce costs that may have previously gone unnoticed. Ask the right questions regarding purchasing/selling assets, supplier negotiations and potential investment decisions. An experienced tax professional may help your organization avoid nasty pitfalls that can take years to recover from.
Don’t Forget Data Storage
Finally, how your tax data is stored is just as important as combing through the finite details. Scanned and electronic records should always match hard copies. There should always be a backup copy readily available for verification purposes. Reconstructing tax records from their inception can be more of a daunting task than your organization wants (or has time) to endure. A backup system is always a great idea to ensure all records are stored securely. Today, there are countless options to save tax records 3 including zip drives, flash drives and cloud storage. Try a mix of more than one method to avoid any hiccups in your financial record keeping.
1 The Seven States With No Income Taxes by David Rae
2 What Financial Savvy Individuals Do After The April 15th Tax Deadline by Megan Gorman
3 Taxes From A To Z 2019: Z Is For Zip Drive by Kelly Phillips Erb