Tips for Starting a Business
Thinking of starting a business? Before starting a business, it’s good idea to first know how to run a business. Jean Murray outlines the topics you’ll need to grapple with to make sure your business venture gets started on the right foot in her article, What Do I Need to Know to Run a Business?
One of the first decisions an entrepreneur makes is which organizational structure to use for tax purposes.
There are several organizational structures, such as sole proprietorships, partnerships, and corporations. Each of these has different tax impacts. For a general overview of the tax aspects of each organizational structure, see the the article Incorporating a Business.
Accounting software helps business owners keep track of their revenues and expenses and helps automate the record-keeping process. Shelley Elmblad discusses the features of seven small business accounting software programs in her article, Small Business Accounting Software Choices.
Accounting records come in handy at tax time, when we use financial statements for the year to prepare a business tax return. What I do, is I set up my expenses categories in my accounting software to match the various business tax deductions. Jean Murray provides information on a wide range of business deductions that can be written off.
Also, business owners might want to check out Web-based seminars from the IRS that will be held May 13th and
May 15th, 2014, covering payments to independent contractors and avoiding business tax headaches. For more details, see the IRS’s Webinars for Small Businesses.