Tax Tip Number 2017-67: Four Things to Know about Taxes and Starting a Business
Internal Revenue Service (IRS) sent this bulletin at 10/30/2017 09:00 AM EDT
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Issue Number: Tax Tip Number 2017-67Inside This IssueFour Things to Know about Taxes and Starting a Business New business owners have tax-related things to do before launching their companies. IRS.gov has resources to help. Here are some items to consider before scheduling a ribbon-cutting event. Choose a business structure When starting a business, an owner must decide what type of entity it will be. This type determines which tax forms a business needs to file. Owners can learn about business structures at IRS.gov. The most common forms of businesses are: Determine business tax responsibilities The type of business someone operates determines what taxes they need to pay and how to pay them. There are the five general types of business taxes.
Choose a tax year accounting period Businesses typically figure their taxable income based on a tax year of 12 consecutive months. A tax year is an annual accounting period for keeping records and reporting income and expenses. The options are:
Set up recordkeeping processes Being organized helps businesses owners be prepared for other tasks. Good recordkeeping helps a business monitor progress. It also helps prepare financial statements and tax returns. See IRS.gov for recordkeeping tips. Additional Resources:
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