Legal Guide

It's Tax Season — Here's Where to Look If You Need Assistance

Tax Season is stressful for everyone. It is even more stressful when you are a business owner. Trying to figure out exactly what you owe the federal government is stressful and once you finally know the total, what if you do not have the money on hand to pay the full amount you owe. 

What Do You Do If You Owe More On Taxes Than You Have

As a business owner when you discover that you owe more on the companies taxes than the liquid assets you have on hand, it is natural for you to start to rack your brain and even panic a little bit. Take a deep breath though you can get a loan to cover your taxes and interest rates are low right now so you will not have to pay a large finance charge.

When you start looking for some assistance you will find that you have a lot of options to choose from. Depending on the amount you need, how much you want your payment to be, and several other factors will affect the type of loan you will want to take out to cover your tax debt.

Types of Business Loans You Could Use to Cover a Tax Debt

There are several different business loans offered by most financial institutions. A lot of factors are at play in trying to decide which loan will best fit your business needs. These are the options that work best to cover tax debts…

  • Business Line of Credit

This is just a great option for any company to have access to. This is very similar to a credit card. It is a line of credit extended from a financial institute at a set interest rate. This line of credit has a limit and you can not be extended more than that total. If you had a credit line and found out your tax balance, you could have just written a check off of your credit line and it would have been covered.

  • Short Term Loan

If you only need a small amount, expect to pay the loan off quickly, or do not care how high the payment is a short-term loan may be a good option for you. Typically the shorter the term the lower the interest rate, but paying the loan in a shorter amount of time will make your min monthly payment a lot higher. 

  • Term Loan

This loan is the most common loan that financial institutes issue. This loan will be paid over a long period of time and have a set interest rate. The longer the term typically the higher that interest rate will be. If your biggest concern is having the lowest monthly payment possible, this will be the best choice for you.

No Need To Panic Over Taxes

Help is available if you find that your business is a little short of the amount they need to cover its tax debt. All you have to do is reach out to a financial institute and see what options they can offer you. Make sure that you get the loan options that will work best for you and that you will be able to make the payment monthly.

While you are there you should also check into what you need to do to open a business line of credit so in the future you will have a way to access funds when you have a financial emergency arise in your company. This will give you peace of mind knowing that no matter what happens you will always have a way to cover expenses as they arise. 

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