Are You A New business Owner? Here Are 4 things You Need to Know When Registering Your Business
Here at BoldBizz HQ, we think it’s important for you as a new business owner to be informed about the tax obligations for your business. This is why we reached out to Kimberly Barrett who is a tax compliance consultant for E%cellence Tax Compliance services. Kimberly focuses on startups and small to medium clients. Her goal and vision are to help educate startups and small businesses to be tax compliant, and in the near future, she would like to give workshops on tax obligations as well. Kimberly was kind enough to share these 4 tips for new business owners when it comes to being tax compliant.
1. Choose the right type of ownership for your business
There are a few differences between a sole proprietorship and a limited liability company when it comes to tax obligations. A sole proprietorship is linked to one person, which means that one person is responsible for its tax obligations. An LLC is linked to more than one person which means there is an independent legal entity who is responsible for its tax obligations. The profit of a sole proprietorship must be stated (yearly) in the personal income tax return whereas the profit of an LLC has to be stated in the corporate income tax return so choose wisely when registering your business at the Chamber of Commerce. registratie belastingen eenmanszaken/particulieren.
2. It’s mandatory you register your business at the Tax department
After registering your business at the Chamber of Commerce, you need to pay a visit to the Tax department’s administration office. If you have a sole proprietorship you can register with the “” form. If you have an LLC (or other legal entities), you can register with the registration form “registratie belastingen rechtspersoon”. When filling in these forms be sure to select the tax type that will be applicable for your line of business. #DidYouKnow: as of January 1st 2020, you can register online through the portal of the tax administration office in order to have access and submit monthly taxes. You would have to make an appointment first: https://boimpuestoappointments.as.me/schedule.php
3. As a business owner, be sure to inform yourself on the different tax types
There are various tax types that are applicable for business owners. Here is a list of the most common tax types that you should consider for your type of business:
• BBO/BAZV/BAVP (turnover taxes)
• Wage tax, AOV/AWW premium and AZV premium
• Corporate income tax
• Dividend withholding tax
• Tourist levy (Toeristenheffing)
• Environmental levy (Bijzondere belasting verblijf BBV)
4. Educate yourself on the the most important tax obligations as a business owner.
Kimberly cannot stress this enough to business owners: be sure to have a correct and complete administration, an annual financial statement, and submit/pay your taxes on time. Lastly, as the economy fluctuates, businesses can suffer which means sometimes you are unable to comply with your tax payments. If this is the case, be sure to report this on time at the tax administration office to avoid any additional assessments and fines.Follow these 4 tips that Kimberly shared with us and you’ll be on the right (administration) path for your business!
