Tax Help When Starting a Small Business
If you are opening a new business this summer, AVL Tax Professionals has some basic federal tax information from the IRS to help you get started.
Here are some things to consider when starting a business:
- Type of Business One of the first decisions you need to make is what type of business you are going to establish. The most common types of businesses are sole proprietorship, partnership, corporation, S corporation, and Limited Liability Company. The type of business you establish determines which tax forms you will need to file.
- Types of Taxes The type of business you operate also determines what types of taxes you will pay and how you will pay them. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax.
- Employer Identification Number A business typically needs to get an Employer Identification Number to use as an identifier for tax purposes. Check IRS.gov to find out whether you will need this number, and, if so, you can apply for an EIN online.
- Recordkeeping Good records will help you keep track of deductible expenses, prepare your tax returns and support items that you report on your tax returns. Good records will also help you monitor the progress of your business and prepare your financial statements. You may choose any recordkeeping system that clearly shows your income and expenses.
- Tax Year Every business taxpayer must figure taxable income on an annual basis called a tax year. Your tax year can be either a calendar year or a fiscal year.
- Accounting Method Each taxpayer must also use a consistent accounting method, which is a set of rules for determining when to report income and expenses. The most commonly used accounting methods are the cash method and accrual method. Under the cash method, you generally report income in the tax year you receive it and deduct expenses in the tax year you pay them. Under an accrual method, you generally report income in the tax year you earn it and deduct expenses in the tax year you incur them.
Don't forget, AVL Tax Professionals is open year round so call us at 828.277.4177 or email This email address is being protected from spambots. You need JavaScript enabled to view it. to get tax advice you can trust!
Prepare
for your visit
Your Office Visit
Please call our office to schedule your appointment. It is important for you to speak with a tax professional when you drop off your information to be sure we have everything needed to prepare your returns accurately. Below are some things to keep in mind.
- Allow a few minutes for us to look over your paperwork & make copies of your ID & SSN cards, etc.
- You may complete a Client Origanizer from Forms & Worksheets before your visit.
- We will prepare your return using the information provided.
- If we need any additional information, we will contact you in order to complete the return.
- Once we complete the return, we will call and discuss the results and set up a time for you to pick up your completed return.
Prepare
for your visit
Your Office Visit
Please call our office to schedule your appointment. It is important for you to speak with a tax professional when you drop off your information to be sure we have everything needed to prepare your returns accurately. Below are some things to keep in mind.
- Allow a few minutes for us to look over your paperwork & make copies of your ID & SSN cards, etc.
- You may complete a Client Origanizer from Forms & Worksheets before your visit.
- We will prepare your return using the information provided.
- If we need any additional information, we will contact you in order to complete the return.
- Once we complete the return, we will call and discuss the results and set up a time for you to pick up your completed return.
Tax Help When Starting a Small Business
If you are opening a new business this summer, AVL Tax Professionals has some basic federal tax information from the IRS to help you get started.
Here are some things to consider when starting a business:
- Type of Business One of the first decisions you need to make is what type of business you are going to establish. The most common types of businesses are sole proprietorship, partnership, corporation, S corporation, and Limited Liability Company. The type of business you establish determines which tax forms you will need to file.
- Types of Taxes The type of business you operate also determines what types of taxes you will pay and how you will pay them. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax.
- Employer Identification Number A business typically needs to get an Employer Identification Number to use as an identifier for tax purposes. Check IRS.gov to find out whether you will need this number, and, if so, you can apply for an EIN online.
- Recordkeeping Good records will help you keep track of deductible expenses, prepare your tax returns and support items that you report on your tax returns. Good records will also help you monitor the progress of your business and prepare your financial statements. You may choose any recordkeeping system that clearly shows your income and expenses.
- Tax Year Every business taxpayer must figure taxable income on an annual basis called a tax year. Your tax year can be either a calendar year or a fiscal year.
- Accounting Method Each taxpayer must also use a consistent accounting method, which is a set of rules for determining when to report income and expenses. The most commonly used accounting methods are the cash method and accrual method. Under the cash method, you generally report income in the tax year you receive it and deduct expenses in the tax year you pay them. Under an accrual method, you generally report income in the tax year you earn it and deduct expenses in the tax year you incur them.
Don't forget, AVL Tax Professionals is open year round so call us at 828.277.4177 or email This email address is being protected from spambots. You need JavaScript enabled to view it. to get tax advice you can trust!