Four Things to Know about Taxes and Starting a Business

Excise Tax – These taxes are applicable for business which deals with: manufacture, sale or use of certain types of goods and products. For More Details Log on http://www.etservicesva.com/

Four Things to Know about Taxes and
Starting a Business
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When starting a new business, owners have many tax related things to do. Here
are few things to know before launching your company.
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1. Choose A Business Structure – From Sole Proprietorships to S Corporations there
are many forms of business structures. So, when starting a business, an owner must
determine what form of business entity it will be. This decides which tax forms a
business needs to file.
2. Determine Business Tax Responsibilities – What taxes you need to pay and how
to pay depends upon the type of business you operates. There are the five general
types of business taxes
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• Income Tax – Except partnerships all
business entity must file an annual income
tax return. They must pay income tax as they
earn or receive income during the year.
• Self-Employment Tax – It refers to a Social
Security and Medicare tax. It applies
primarily to individuals who work for
themselves.
• Employment Taxes - These are taxes an
employer pays or sends to the IRS for its
employees. These include unemployment
tax, income tax withholding, Social Security,
and Medicare taxes.
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• Estimated Taxes - If the amount
of income tax withheld from your
salary or pension is not enough, or
if you receive any income which is
not subject to withholding tax, you
may need to pay estimated taxes
• Excise Tax – These taxes are
applicable for business which
deals with: manufacture, sale or
use of certain types of goods and
products.
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3. Choose A Tax Year Accounting Period – An accounting year or tax year is a
period for keeping records and reporting income and expenses. A business can choose
either a Calendar year or a Fiscal year.
4. Set Up Recordkeeping Processes – Good recordkeeping helps business owners to
monitor progress and also to prepare financial statements and tax returns.
Source IRS
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Essential Tax Services
13168 Piedmont Vista Drive
Haymarket, VA
Zip: - 20169
PH: - 703-754-2601