David M.Green Bookkeeping and Tax Service -
RSS

Recent Posts

Like Harvey, Retirement Plans Can Make Loans, Hardship Distributions to Victims of Hurricane Irma
IRS Has Refunds Totaling $1 Billion for People Who Have Not Filed a 2013 Federal Income Tax Return
File Without 1095-B or 1095-C
6-Month Extension Period for Calendar Year C Corporations
Early Withdrawals from Retirement Plans
powered by

My Blog

Tax Tips if You’re Starting a Business

If you plan to start a new business, or you’ve just opened your doors, it is important for you to know your federal tax responsibilities. Here are five basic tips from the IRS that can help you get started.

Type of Business. Early on, you will need to decide the type of business you are going to establish. The most common types are sole proprietorship..., partnership, corporation, S corporation and Limited Liability Company. Each type reports its business activity on a different federal tax form.

Types of Taxes. The type of business you run usually determines the type of taxes you pay. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax.

Employer Identification Number. A business often needs to get a federal EIN for tax purposes. Check IRS.gov to find out whether you need this number. If you do, you can apply for an EIN online.

Recordkeeping. Keeping good records will help you when it’s time to file your business tax forms at the end of the year. They help track deductible expenses and support all the items you report on your tax return. Good records will also help you monitor your business’ progress and prepare your financial statements. You may choose any recordkeeping system that clearly shows your income and expenses.

Accounting Method. Each taxpayer must also use a consistent accounting method, which is a set of rules that determine when to report income and expenses. The most common are the cash method and accrual method. Under the cash method, you normally report income in the year you receive it and deduct expenses in the year you pay them. Under the accrual method, you generally report income in the year you earn it and deduct expenses in the year you incur them. This is true even if you receive the income or pay the expenses in a future year.

For more information call David M. Green Bookkeeping and Tax Service today.

3 Comments to Tax Tips if You’re Starting a Business:

Comments RSS
long island ad agencies on Monday, July 22, 2013 5:48 AM
i am agreed with you!1 there are many costs that workers overlook when totaling their business expenditures.This cost should not be overlook in my viewpoint.I like the tax tips that you have shared here,it will help a lot to the new businessman.
Reply to comment


classical lv replica handbags on Sunday, July 28, 2013 1:39 AM
Thanks for your nice articles. I like it very much.
Reply to comment


Bicycle crash compensation on Tuesday, August 06, 2013 1:11 AM
These tax tips and advices are really very much effective. Keep it up with sharing such useful information with us. Thanks for the post.
Reply to comment

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment