Starting a business
Opening your own business is exciting. We help you make the decisions that keep it on track long after opening day.
Whether a new business succeeds depends on everything that comes after the excitement of opening wears off. A methodical plan makes the difference.
We help you avoid the common mistakes many new owners make, and build a business that is set up properly from the start.
Decisions every new business faces
Type of business
Sole proprietorship, partnership, corporation, S corporation or limited liability company. Your choice determines which tax forms you file.
Types of taxes
Your business type also determines which taxes you pay and how: income tax, self-employment tax, employment tax and excise tax, plus sales tax for most retailers.
Employer Identification Number
Most businesses need an EIN as their tax ID. We'll tell you whether you need one, and you can apply online with the IRS.
Record keeping
Good records track deductible expenses, support your tax returns and show how your business is doing. Any system that clearly shows income and expenses can work. See our record keeping guide.
Tax year
Every business reports taxable income on an annual basis called a tax year, which can be either a calendar year or a fiscal year.
Accounting method
Under the cash method you generally report income when you receive it and deduct expenses when you pay them. Under the accrual method you report income when you earn it and deduct expenses when you incur them.
We help you…
- Prepare an initial business plan covering your marketing, management and finances
- Determine how much start-up capital you need
- Choose the business structure that fits best, weighing taxes, legal exposure, ease of operation and flexibility if you relocate
- Set up billing and collection procedures that maximize cash flow
- Set up procedures to monitor and control costs
- Set up a home office that maximizes your tax deductions
- Prepare and file the state and local licenses and permits you need
- Apply for your Federal Employer Identification Number
- Run payroll and payroll tax filings when you hire your first employee
- Comply with employment laws, so you avoid fines and unhappy employees
- Identify your business insurance needs