• Menu
  • Skip to right header navigation
  • Skip to primary navigation
  • Skip to secondary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Starting Up Tips: How to Start a Small Business

Tips to Starting a Small Business

  • Starting a Business
    • Home Business
  • Financing
  • Marketing
    • Online Marketing
  • Growing
  • Search
  • Starting a Business
    • Home Business
  • Financing
  • Marketing
    • Online Marketing
  • Growing
  • Search
  • Home
  • Business Quotes
  • Checklist for Starting a Business
  • Home Business
  • Contact
  • About

Tax Tips for Starting a Business

When starting a business, it is important to know about taxes. Learn how you will be taxed, what you can deduct based on the business, reporting schedules, and tax guidelines.

You are here: Home / Financing / Tax Tips for Starting a Business
tax return

October 26, 2010 //  by Isabel Isidro

tax return

.When starting a business, it is important to know about taxes. Learn how you will be taxed, what you can deduct based on the business, reporting schedules, and tax guidelines pertinent to your business and overall situation.




Here are the six tax tips of the Internal Revenue Service (IRS) for new business owners:

  1. 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 year 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.


Similar Posts:

  • How to Increase the Income of Your Small Business
  • How to Choose the Best Legal Structure for Your Business
  • 80 Questions to Ask When Starting a Business
  • Tax Tips for the Home Business Entrepreneur
  • 4 Ways to Get Organized This Tax Season

Filed Under: Financing Tagged With: Small Business Taxes

Checklist for Starting a Business

Are you thinking of starting a business but don’t know where and how to start? Learn the step-by-step process to starting your own small or home-based business. Buy our Kindle eBook Checklist for Starting a Business at Amazon.com today.
Previous Post: «Business meeting Become a More Effective Leader
Next Post: Define Your Business Model Shopkeeper holding open sign»

Reader Interactions

Comments

  1. BernieR

    November 9, 2010 at 6:11 pm

    ЎHola!
    Super post, tienen que marcarlo en Digg
    Gracias

Primary Sidebar

  • Facebook
  • Pinterest
  • RSS
  • Tumblr
  • Twitter

Business Quotes

Check out our collection of inspiring business quotes.

These motivational quotes from business leaders, entrepreneurs and small business owners including passion quotes, quotes on business risks, quotes on success, as well as motivational quotes from business leaders such as  Guy Kawasaki and others. Visit our Business Quotes

Email Newsletter

Get tips on starting a business.

We respect your privacy. Your information will not be shared.

Popular Posts

  • discussing proposal Why Feedback is Important for Your Startup Business
  • woman home office Avoid Choosing a Bad Business Opportunity
  • Senior man working from home with a laptop. Improve Your Online Presence
  • How to Find a Gap in the Market?
  • thumbs up To Succeed, Understand Basic Business Principles

Footer

RSS PowerHomeBiz

  • 8 Tips for Starting a Home Business in Canada
  • 5 Proven Ways to Convert Ad Leads Into Paying Customers
  • 8 Business Blog Topics Your Audience Wants You to Write About
  • 5 Benefits of Using Marketing Automation

How to Sell More Online

Want to succeed online and increase the sales of your online store? Buy our Kindle eBook How to Sell More Online: 40 Tips for the Small Online Entrepreneur at Amazon.com today.
  • Sitemap
  • Contact
  • Quotes
  • About
  • Privacy Policy
  • Checklist for Starting a Business

Copyright © 2021 · StartingUpTips.com · Terms of Use and Privacy Policy