What are the various types of Business Organizations – Structures
and which is best?
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.
Resources for Starting
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
tips to lead and empower your employees. >>Read more
SCORE Business Valuation 101
Qualified Joint Venture
Reference - Please check with us on latest AB 1083 Requirements
Warner Pacific 411 Broker ONLY
Life Insurance Buyers Guide
Video on how much coverage for death protection you need
CA Franchise Tax Board’s Guide & IRS to:
Common Forms of Ownership
Personal Service Corporation
Social Purpose Corporation
Limited Liability Company
Single Member Limited Liability Company
Limited Liability Company Classified as a Partnership
Limited Liability Company Classified as a Corporation
Appendix 1: Doing Business As
Appendix 2: Commonly Used Terms
Steve Shorr Explanation of Participation Rules Pre - ACA
IRS Small Business Self-Employed Tax Center
Meals & Entertainment
Car and Truck Expenses
Legal and Professional Fees
Travel and Meals
Business Use of Your Home
Other Expenses You Can Deduct
Expenses You Cannot Deduct