It’s the most terrible time of the year,
Tax season is the bane of my existence as a small business owner in New York. Every year, I dread the time when I have to gather all of my financial documents and try to make sense of the confusing tax laws in my state. As a small business owner, I wear many hats. I have to manage my finances, handle customer service, and stay on top of industry trends. Adding the stress of tax season to my already busy schedule is overwhelming.
New York has some of the highest taxes in the country, which means that I have to pay a lot of money to the state and federal government. This can be especially difficult when I am trying to grow my business and reinvest in new equipment or advertising. To make matters worse, the tax laws in New York are incredibly complicated. There are so many different rules and regulations that it can be difficult to keep track of them all. This means that I often have to hire an accountant to help me file my taxes, which adds another expense to my already tight budget.
This map below shows just how high New York is taxed more than other states.
According to this, New York is the state with the highest taxes overall. Highest income taxes, high sales tax rate, high property taxes, and high excise taxes. And when you are your own boss, you pay double with the self employment tax. This is why you should set your business up into an S corp, to avoid double taxation.
I understand that taxes are necessary to fund important government services, but I wish that the process could be made simpler for small business owners like me. It would be nice if the government could provide more resources to help us understand the tax laws and file our taxes correctly. I just hope that one day, the tax system can be made easier and more accessible for everyone, especially small business owners who are trying to make ends meet.