FIVE TAX TIPS FOR STARTING A NEW BUSINESS
When starting a new business, you may find the following tax tips helpful:
1. Business Structure: An early choice to make is to decide on the type of structure for the business. The most common types are a sole proprietor, partnership, and corporation. The kind of business chosen will determine which tax forms to file.
2. Business Taxes: There are four general types of business taxes. They are income tax, self-employment tax, employment tax, and excise tax. In most cases, the types of taxes a business pays depend on the type of business structure set up. Taxpayers may need to make estimated tax payments.
3. Employer Identification Number: Generally, companies may need to get an Employer Identification Number (EIN) for federal tax purposes.
4. Accounting Method: An accounting method is a set of rules used to determine when to report income and expenses. Taxpayers must use a consistent method.
Industry-Specific Guidelines
The Internal Revenue Service provides industry-specific guidelines. You should also check your state’s website for state-specific requirements.
Taking the Right Tax Deductions
There are several things that you need to understand before getting started regarding expenses. Especially what you can deduct as a travel expense, entertainment expense, gift expense, and even car expenses. Relevant considerations include tax withholding, casualties, disasters, theft, and how to depreciate property. While you must also decide whether someone is an actual employee or an independent contractor. So avoid mistakes before they happen by starting your business out on the right foot. As a result, we will be with you every step of the way.
Business Development
One of our specialties is business development. Our Tax Professionals have more than 29 years of experience and are ready to help you avoid starting your business off on the wrong foot. Contact Us for additional information. We serve all 50 states and the territories of the United States.
