Do you have a great new product or are you in the service industry looking to branch out on your own? Starting your own business can be an exciting but stressful time. You may be an expert in your respected field, but the business aspect of all this is overwhelming. Here at Thomas M DiTullio Accounting we understand and are here to help you on this journey.
Here are some helpful Tax Tips to get you started on the right foot . . .
- You need to decide on your business structure. Will you be a Sole-Proprietor or an LLC? A Partnership perhaps, or a Corporation. There are tax advantages, and disadvantages, to each entity. Your choice of the formation of your company will determine which tax forms need be filed as well as the filing frequency.
- Depending on your business structure, you will be required to file “Business Taxes”. The general types of these taxes are income tax, self-employment tax and employment tax.
- You will need an EIN (Employer Identification Number) for your business to open your new business checking account. This will also be necessary should you have employees.
- Your “Accounting Method” will determine which set of rules you will use to determine when, and how, to report income and expenses. The most common method is the “Cash Method”. Income and expenses are reported in the year you receive, or pay, them.
- We can assist you in determining what is the best strategy to having a very long and profitable business.
- Will you need payroll? Payroll can be confusing but, if done right, it should be simple. We will file your payroll taxes on a weekly or biweekly basis to make sure you don’t get behind. We can also file the Quarterly and Year End Federal and State payroll forms to keep you compliant, for example Form 941, 940, NJ927, WR-30.
- Do you need to charge and remit sales tax? We will be able to first assist you in determining if you need to charge sales tax or not and, if so, we would be able to file State sales tax forms on your behalf, for example ST-50.
Our office can form all types of businesses. We are on your “Team”. We will work for you to make sure you and your new business are compliant with all Federal and State regulations.
Please contact Thomas M DiTullio accounting with any questions at all. We are here to help you.