There are many tax considerations to consider when you start a business.  The list below is a good place to start.

Business Structure:

When you start a business, you need to decide the structure for your business.  Most businesses are either sole proprietorships, partnerships, corporations, limited liability companies, or professional limited liability companies.  Each structure has unique tax obligations.  A CPA can help you decide the best structure for your business.

Business Taxes:

Every business has to pay tax.  There are 4 types of business taxes:

income taxes

self-employment taxes

employment taxes

excise taxes

The types of taxes a business has to pay depends on the structure of the business.  It is also important for self-employed business owners to make quarterly estimated payments throughout the year to avoid a large tax liability when they file their income taxes.

Employer Identification Number:

Some businesses require an EIN (Employer Identification Number). You can search here to see if you need to get an EIN.  If you need to get an EIN, you can apply to get one on-line here.

Accounting Method:

The most common accounting methods are cash basis and accrual basis.

Cash basis means income and expenses are reported as they are received and paid.

Accrual basis means income and expenses are reported as they are earned and incurred even if it’s later in the year or the following year.

A CPA can help you decide the best accounting method for your business.  Once an accounting method is chosen, it must be used consistently.

Health Care For Employees and Yourself:

If your business offers health insurance for employees and has less than 25 full-time employees, the Small Business Health Care Tax Credit is available for you.

More information about employee health care and the Affordable Care Act For Employers can be found here.

Individual health insurance plans can be applied for here.