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.