Starting a business | TaxConnections

07 Jan 2021

Starting A Business In Texas: Choice Of Entity

Business owners in the State of Texas face a lot of tough decisions. Perhaps the most significant of these decisions is the choice of entity the business will utilize while conducting its operations. Similar to many other states, the State of Texas offers its business owners and entrepreneurs several options. This Insight provides a summary of the tax and non-tax implications of each potential entity.

Sole Proprietorship.

It may surprise you to learn that starting a business in Texas sometimes does not require any formal organization paperwork at all. For example, a business owner or entrepreneur may begin conducting business in Texas under his or her own name.[i]

Written by Matthew Roberts | Posted in Choice Of Entity • Start New Business • Texas

09 Aug 2016

Start-up And Organization Costs

When starting a business, the owners are likely to incur two classes of costs that are not normally encountered in the ongoing operations of the business and should not be included as operating expenses. These are start-up expenditures and organization costs. Each of these are specifically defined and receive special tax treatment.

Written by John Stancil | Posted in Corporate • Income Tax

10 Jun 2015

Starting A Business? Five Things You Must Know

Starting a new business is an exciting, but busy time with so much to be done and so little time to do it in. And, if you expect to have employees, there are a variety of federal and state forms and applications that will need to be completed to get your business up and running. That’s where a tax professional can help.

Employer Identification Number (EIN)
Securing an Employer Identification Number (also known as a Federal Tax Identification Number) is the first thing that needs to be done, since many other forms require it. EINs are issued by the IRS to employers, sole proprietors, corporations, partnerships, nonprofit associations, trusts, estates, government agencies, certain individuals, and other business entities for tax filing and reporting purposes. Read More

Written by Dan Gordon | Posted in Small Business

04 Jul 2013

Tax Tips If You Are Starting A Business

If you plan to start a new business, or you’ve just opened your doors, it is important for you to know your federal tax responsibilities. Here are five basic tips the IRS provides that can help you get started.

1. Type of Business. Early on, you will need to decide the type of business you are going to establish. The most common types are sole proprietorship, partnership, corporation, S corporation and Limited Liability Company. Each type reports its business activity on a different federal tax form. You should consult with an attorney and you’re your Enrolled Agent prior to making the decision.

2. Types of Taxes. The type of business you run usually determines the type of taxes you pay. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax.

3. Employer Identification Number. A business often needs to get a federal EIN for tax purposes. Check IRS.gov and/or your Enrolled Agent to find out whether you need this number. If you do, you can apply for an EIN online.

4. Record keeping. Keeping good records will help you when it’s time to file your business tax forms at the end of the year. They help track deductible expenses and support all the items you report on your tax return. Good records will also help you monitor your business’ progress and prepare your financial statements. You may choose any record keeping system that clearly shows your income and expenses. Good records are essential to surviving an audit. Read More

Written by Steven Potts | Posted in Small Business • Tax Tips