SMALL BUSINESS
Are You a Small Business
There will be a host of products, services, and other resources that you will need as you start, manage and grow your business.
Even though funds are likely to be tight in the beginning, it's not advisable to try to do everything yourself.
Start by: picking a great name, see if the domain name is available, hire a CPA, choose the proper legal entity, choose a band, write a business plan, research your chosen
market, hire great help and focus on your customer. Keep up to date with what is going on in your chosen field and mix with as many different business people as you can. Good Luck!
Six Tax Tips for New Business Owners
IRS Summertime Tax Tip 2010 -05
Are you opening a new business this summer? The IRS has many resources available for individuals that are opening a new business. Here are six tax tips the IRS wants new business owners to know.
1. First, you must decide what type of business entity you are going to establish. The type of business entity will determine which tax form you have to file. The most common types of business are the sole proprietorship, partnership, corporation and S corporation.
2. The type of business you operate determines what taxes you must pay and how you pay them. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax.
3. An Employer Identification Number is used to identify a business entity. Generally, businesses need an EIN. Visit IRS.gov for more information about whether you will need an EIN. You can also apply for an EIN online at IRS.gov.
4.Good records will help you ensure successful operation of your new business. You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.
5. Every business taxpayer must figure taxable income on an annual accounting period called a tax year. The calendar year and the fiscal are the most common tax years used.
6. Each taxpayer must also use a consistent accounting method, which is a set of rules for determining when to report income and expenses. The most commonly used accounting methods are the cash method and an accrual method. Under the cash method, you generally report income in the tax year you receive it and deduct expenses in the tax year you pay them. Under an accrual method, you generally report income in the tax year you earn it and deduct expenses in the tax year you incur them.
Links
Starting a Business and Keeping Records
Employer ID Numbers (EINs)
IF YOU ARE GOING TO INCORPORATE, CALL YATES & COMPANY TO ENSURE YOU ARE
CHOOSING THE PROPER ENTITY AND FILING THE CORRECT FORMS
770 591 8887