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TSPA’s tax tips for new business owners

Posted on October 21, 2019

Starting a business can be very rewarding and sometimes, a little overwhelming. There’s an awful lot to keep track of.

That’s why, here at Teipen Selanders Poynter & Ayres, we offer excellent CPA services for small-to-medium businesses – to help you keep your financial ducks in a row right from the start.

Here’s what we share with our new business clients to help them get off to a good start:

  • All businesses must file business taxes, however your business structure determines which income tax return your business will file. Most businesses are one of the following:
    • Sole Proprietorship – An unincorporated business owned by an individual. There’s no distinction between the taxpayer and their business.
    • Partnership – An unincorporated business with ownership shared between two or more people.
    • C corporation – A separate entity owned by shareholders.
    • S Corporation – A business that elects to pass corporate income, losses, deductions, and credits through to the shareholders.
    • Limited Liability Company – Commonly called an “LLC,” this is a business structure allowed by state statute.
  • As odd as it sounds, companies choose their tax year, the annual accounting cycle for keeping records, and reporting income and expenses. New businesses choose from:
    • Calendar year – 12 consecutive months January 1 through December 31.
    • Fiscal year – 12 consecutive months ending on the last day of any month except December.
  • Apply for your business EIN – also called a federal tax identification number used to identify your business.
  • All employees must complete the following:
    • Form I-9, Employment Eligibility Verification
    • Form W-4, Employee’s Withholding Allowance Certificate

When you are ready to begin your business, we encourage you to set up an appointment with one of our CPA business professionals. We work with many different types of industries, each with their own special state and federal requirements – so we can answer many of your questions before you get started.

Prefer doing some research first? Check out the Small Business Admiration’s 10 steps to start your business.