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.