How to start your business
Everything you need to know to set up your business the right way - right here!
Here are guides for each step of the process:
How to determine which type of business to use
Different types of businesses have different legal and tax obligations. Types include sole proprietorships, partnerships, limited liability companies (LLCs), C corporations, and S corporations. Which type best suits your business depends on its particular needs and risks.
How to get a Taxpayer Identification Number (EIN)
Like a social security number for individuals, businesses need a taxpayer identification number: an employer identification number (EIN). Getting an employer identification number (EIN) from the IRS is essential and completely free.
How to designate a tax year
Tax returns are filed based on a tax year. There are two types: calendar tax years and fiscal tax years.
Learn which type to use, how to change the type, and how to file for the first time here
How to choose an accounting method
There are two basic accounting methods, along with a few other, specialized methods. Your business may also need to account for inventory as part of its income.
Learn about these methods and inventory here
Types of business taxes and which to pay
Learn about the four main types of business taxes, which to pay, and which forms to file here
How to report payments with Information Returns
In addition to income tax returns, most payments your business makes and receives need to be reported to the IRS with information returns.
How to deduct business expenses
Many kinds of business expenses (current operating costs) can be deducted from income tax returns. Deducting these properly is important for reducing your tax burden to only what is necessary.
Learn which expenses to deduct and how here
How to keep records
How to get help with taxes
The IRS has many different tools and resources available online to help prepare returns and answer questions. The IRS also offers free programs for tax preparation, although some of these may not be used for state taxes.
Get a quick overview of these resources here
All these topics are also covered in IRS document 583, available here