How To Start A Business and Keep Taxes In Line!

There are four important steps when creating your business.

The first is to determine what kind of business structure you would want, and there are five common business structures that individuals use;

1. Sole proprietorship

2. Partnerships

3. Corporations

4. S Corporations

5. Limited liability company.

The second step is determining what kind of taxes your corporation would like to obtain. There are five common types of business taxes.

1. Income Tax

2. Estimated Taxes

3. Self-employed tax (Such as 1099's)

4. Employment Taxes

5. Excise Tax

The third step is to choose a tax year accounting period, which is an annual accounting period which include calendar year (January 1- December 31) and fiscal year (12 consecutive months ending on the last of the month, not including December)

Finally, the fourth step is to set up a recordkeeping processes, for it is important to keep an organized business, not only will it help monitor progrees but keep papers read for any tax season.

(All information is from IRS and can be found on IRS.gov)