IR-2023-93: IRS highlights information and free resources in recognition of National Small Business Week

Bookmark and Share Banner
IRS Newswire April 28, 2023

News Essentials

What's Hot

News Releases

IRS - The Basics

IRS Guidance

Media Contacts

Facts & Figures

Around The Nation

e-News Subscriptions

The Newsroom Topics

Multimedia Center

Noticias en Español

Radio PSAs

Tax Scams

The Tax Gap

Fact Sheets

IRS Tax Tips

Armed Forces

Latest News Home

IRS Resources

Contact My Local Office

Filing Options

Forms & Instructions

Frequently Asked Questions


Taxpayer Advocate

Where to File

IRS Social Media

Issue Number:    IR-2023-93

Inside This Issue

IRS highlights information and free resources in recognition of National Small Business Week

IRS YouTube Videos
IRS Small Business Self-Employed Tax CenterEnglish | ASL

WASHINGTON – As part of National Small Business Week, April 30 to May 6, the Internal Revenue Service is highlighting tax benefits and resources to help those looking to start a business.

National Small Business Week is an annual effort led by the Small Business Administration to recognize the hard work, ingenuity and dedication of America’s small businesses and to celebrate their contributions to the economy. To support the special week, the IRS has a variety of resources available for small business owners to help them understand and meet their tax responsibilities. Next week, the IRS will be highlighting some of these resources, and @IRSnews also plans a special Twitter chat on Thursday.

When choosing to start a business, it’s important to consider the following:

Employer Identification Number
Most business owners will need an Employer Identification Number (EIN). It’s a permanent number and can be used for most business needs, from opening bank accounts to filing a tax return by mail. Business owners can get their EIN immediately by applying online at at no cost.

Business structure
Taxpayers must decide what form of business entity to establish when starting a business. This helps determine which income tax return form must be filed. The most common business structures are:

  • Sole proprietorship - When an individual owns an unincorporated business by themselves.
  • Partnerships - The relationship between two or more people to do trade or business.
  • Corporations - In forming a corporation, prospective shareholders exchange money, property or both for the corporation's capital stock.
  • S Corporations - Are corporations that elect to pass corporate income, losses, deductions and credits through to their shareholders for federal tax purposes.
  • Limited Liability Company (LLC) – Are allowed by state statute and may be subject to different regulations. The IRS will treat an LLC as either a corporation or a partnership, or as part of the owner’s tax return (e.g., sole proprietorship), depending on elections made by the LLC and its number of members.

Understand business taxes
By law, everyone must pay taxes as they earn income. For small business owners and self-employed people, that usually means making quarterly estimated tax payments as their business earns or receives income during the year. The form of business being operated determines what taxes must be paid and how to pay them. The four general types of business taxes are:

  • Income tax - All businesses except partnerships must file an annual income tax return. Partnerships file an information return.
  • Self-employment tax - Is a Social Security and Medicare tax primarily for individuals who work for themselves. Payments contribute to the individual’s coverage under the Social Security system.
  • Employment tax - When small businesses have employees, the business has certain employment tax responsibilities that it must pay and forms it must file.
  • Excise tax – Excise taxes are imposed on various goods, services and activities. Such taxes may be imposed on the manufacturer, retailer or consumer, depending on the specific tax.

Good recordkeeping
In addition to helping with tax return preparation, maintaining well-organized records can also help small businesses prepare financial statements, identify sources of income, keep track of deductible expenses and monitor their progress, among other benefits. Taxpayers should plan to maintain their records for at least three years.

Business year options
A “tax year” is an annual accounting period for reporting income and expenses. Small businesses must figure their taxable income based on a tax year and can choose between:

  • 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. A 52 to 53 week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month.

Additional information


Back to Top

FaceBook Logo  YouTube Logo  Instagram Logo  Twitter Logo  LinkedIn Logo

Thank you for subscribing to the IRS Newswire, an IRS e-mail service.

If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe.

This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message.