Happy July, folks! We’re kicking off the summer with a series of blog topics and new business tax advice that you’ll want to read. This month, we’re digging deep into the business of new business tax.
Entrepreneurs are excited about opening up their new business. Rightfully so, they are caught up in the motions of branding, a new logo, email accounts, and #allthefunthings. But entrepreneurs can easily forget about one of the most important aspects of their business: establishing a new business tax protocol.
Stick with the following three steps for your new business:
- Choose the right business entity.
There are a few options each with their own pros and cons. For example, forming a Limited Liability Company (LLC) in New York is not the same as forming one in Georgia. LLC’s have different tax treatment than Corporations, and so on. This is where an experienced tax professional can step in. Choosing the right entity for your unique needs can literally save you thousands of dollars or more.
- Understand the tax and licensing requirements for your new business.
It is possible that your type of business may have unique tax and licensing requirements. For example, if you sell items online, does your state require you to collect sales tax for the type of items in your inventory? Does your local government require every storefront to register at City Hall? Are there certain items regulated by the federal or local government? Again, this is where a tax professional would go a long way.
- Create a bookkeeping system.
Small business owners often overlook the need for a reliable system for tracking income and expenses, often leaving the bookkeeping work for tax time. This mistake can cause you to rush at the last minute, trying to get your documents in order before the filing deadline or have to pay a large rush fee to an accountant. A bookkeeping system will save you thousands or more. So grab your pencil and a cup of coffee – and create your system today!
There it is! Tell us what you think about the article! If you’ve already accomplished any of the steps, hoorah! If you’re having trouble or need guidance, feel free to call us at (404) 600-1040 or write to us at firstname.lastname@example.org.