Starting your own business introduces various tax considerations, from choosing the right business structure to handling operating expenses, which can have significant implications for your tax situation.

  • The excitement and challenge of starting a new business
  • Overview of tax implications for new business owners
  • Importance of tax planning from the outset

Choosing a Business Structure

  • Sole Proprietorship, Partnership, LLC, S Corporation, and C Corporation
    • Comparison of tax implications for each structure
  • How to Elect S-Corp Status
    • Benefits and tax reporting for S-Corps

Business Tax Identification

  • Applying for an Employer Identification Number (EIN)
  • Opening a Business Bank Account

Start-Up Costs and Capital Expenditures

  • Deducting Start-Up Costs
    • What qualifies and the limits on deductions
  • Depreciating Capital Expenses
    • Asset classification and depreciation schedules

Operating Expenses

  • Common Deductible Business Expenses
    • Inventory, utilities, rent, insurance, and marketing
  • Home Office Deduction
    • Qualifying and calculating the deduction
  • Travel, Meals, and Entertainment
    • Substantiation requirements for deductions

Self-Employment Taxes

  • Understanding Self-Employment Tax
    • Calculating and paying self-employment tax
  • Making Estimated Tax Payments
    • How and when to pay estimated taxes

Recordkeeping and Accounting

  • Best Practices for Business Recordkeeping
    • Keeping accurate and comprehensive financial records
  • Accounting Methods: Cash vs. Accrual
    • Choosing the right accounting method for your business

Employment Taxes

  • Hiring Employees vs. Using Independent Contractors
    • Tax implications and reporting requirements
  • Understanding Payroll Taxes
    • Responsibilities for withholding and paying payroll taxes

Tax Credits for New Businesses

  • Research and Development (R&D) Tax Credit
    • Qualifying for and claiming the credit
  • Work Opportunity Tax Credit
    • Hiring eligible employees to claim the credit

Retirement Plans for Small Business Owners

  • Types of Retirement Plans
    • SEP IRA, SIMPLE IRA, and Solo 401(k) plans
  • Tax Benefits of Establishing a Retirement Plan

Final Thoughts

  • Annual tax checklist for business owners
  • IRS resources and updates relevant to small businesses
  • Consulting with a tax professional for complex issues


Detailed Bullet Points for the IRS Sections:

  • IRS References:
    1. Business Structures: IRS Publication 535
    2. Applying for EIN: IRS Form SS-4 and Instructions
    3. Deducting Business Expenses: IRS Publication 463 for travel, entertainment, gifts, and car expenses; IRS Publication 587 for home office deductions
    4. Self-Employment Tax: IRS Topic No. 554
    5. Estimated Tax for Individuals: IRS Form 1040-ES
    6. Employment Taxes: IRS Publication 15 (Circular E), Employer’s Tax Guide
    7. Retirement Plans for Small Business: IRS Publication 560