Six tips for people starting a new business

Here are six tips for new business owners.

Choose a business structure. The most common business structures are:

• Sole proprietorship: an unincorporated business owned by an individual.
• Partnership: an unincorporated business with ownership shared between two or more people.
• Corporation: also known as a C corporation. It’s a separate entity owned by shareholders.
• S Corporation: a corporation that elects to pass corporate income, losses, deductions and credits through to the shareholders.
• Limited Liability Company: a business structure allowed by state statute.

Choose a tax year. A tax year is an annual accounting period:

• Calendar year: 12 consecutive months beginning January 1 and ending December 31.
• Fiscal year: 12 consecutive months ending on the last day of any month except December.

Apply for an employer identification number:

• It’s used to identify a business.

Have employees complete these forms:

• Form I-9
• Form W-4

Pay business taxes:

• The form of business determines what taxes must be paid and how to pay them.

Visit state’s website:

• Prospective business owners should visit their state’s website for info about state requirements.