Owning your own business as a sole proprietor means you have an unparalleled level of freedom to operate it as you see fit while taking advantage of unique growth opportunities. With all that freedom, though, comes an equally significant amount of financial responsibility, particularly when tax season rolls around. With a basic understanding of critical tax forms, deductions, and codes, you can make tax time less stressful and more rewarding across the board.

The Washington, D.C. metropolitan area is a dynamic region made up of multiple jurisdictions, each with its own set of tax laws which small businesses must follow. Understanding the tax implications of conducting business across state and local boundaries is vital for all small businesses, but especially those operating in this unique part of the country. Adhering to the different tax filing requirements  in each jurisdiction can be challenging.  For owners of small businesses in DC, there are many state and local tax issues to consider.

Keeping accurate records for tax purposes and daily operations is critical when you own a business. Clear, organized records allow business owners to know where they stand financially at any given time during the year. You know that the  IRS requires specific documents in order to evaluate the amount of taxes owed, so prior to reviewing your finances with your CPA, make sure your records are in good order when you submit them.  Here’s why financial record keeping is vital for business, especially at tax time.