What are the various types of Business Organizations – Structures
and which is best?
- IRS Definition of a Business
- LLC Proofs
- Partnership – Proofs
- Sole Proprietor
SCORE Business Valuation 101
Small Biz Administration
Resources for Starting
This week we are highlighting SBA resources for aspiring and existing business owners. Starting & Managing a business is a daunting and detailed process. Get started with our step by step business plan roadmap. >>Read more
Follow these 10 steps to make sure all your start up needs are covered. >>Read more
Resources for Managing
Are you ready to expand your business? Planning and preparing for new challenges is one step in the process. Find out how you can successfully grow your company
Employees are an essential part of your business and brand. Use these top tips to lead and empower your employees. >>Read more
New business owners may find the following five IRS tax tips helpful:
- Business Structure. An early choice to make is to decide on the type of structure for the business. The most common types are sole proprietor, partnership and corporation. The type of business chosen will determine which tax forms to file.
- Business Taxes. There are four general types of business taxes. They are income tax, self-employment tax, employment tax and excise tax. In most cases, the types of tax a business pays depends on the type of business structure set up. Taxpayers may need to make estimated tax payments. If so, use IRS Direct Pay to make them. It’s the fast, easy and secure way to pay from a checking or savings account.
- Employer Identification Number (EIN). Generally, businesses may need to get an EIN for federal tax purposes. Search “EIN” on IRS.gov to find out if the number is necessary. If needed, it’s easy to apply for it online.
- Accounting Method. An accounting method is a set of rules used to determine when to report income and expenses. Taxpayers must use a consistent method. The two most common are the cash and accrual methods:
- Under the cash method, taxpayers normally report income and deduct expenses in the year that they receive or pay them.
- Under the accrual method, taxpayers generally report income and deduct expenses in the year that they earn or incur them. This is true even if they get the income or pay the expense in a later year.
Avoid scams. The IRS does not initiate contact using social media or text message. The first contact normally comes in the mail. Those wondering if they owe money to the IRS can view their tax account information on IRS.gov to find out.
Share this tip on social media — #IRSTaxTip: Starting a Business This Summer? Here’s Five Tax Tips. https://go.usa.gov/xRPJ8
Related Pages in IRS Definition of a Business Section