Practice Management Starting a business 101 Read the Article Open Share Drawer Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on LinkedIn (Opens in new window) Written by Intuit Accountants Team Modified May 10, 2024 2 min read The IRS knows that understanding and meeting tax obligations is vital to the success of your clients’ businesses, especially a new one. There are number of resources on IRS.gov with resources and information to help any client through the process of starting a new business. Choose a business structure The form of business determines which income tax return a business taxpayer needs to file. The most common business structures are: Sole proprietorship: An unincorporated business owned by an individual. There’s no distinction between the taxpayer and their business. Partnership: An unincorporated business with ownership shared between two or more people. Corporation: Also known as a C corporation. It’s a separate entity owned by shareholders. S Corporation: A corporation that elects to pass corporate income, losses, deductions and credits through to the shareholders. Limited Liability Company: A business structure allowed by state statute. Choose a tax year A tax year is an annual accounting period for keeping records and reporting income and expenses. A new business owner must choose either: Calendar year: 12 consecutive months beginning Jan. 1 and ending Dec. 31. Fiscal year: 12 consecutive months ending on the last day of any month except December. Apply for an Employer Identification Number (EIN) An EIN is also called a Federal Tax Identification Number. It’s used to identify a business. Most businesses need one of these numbers even if they don’t have employees. It’s important for a business with an EIN to keep the business mailing address, location and responsible party up to date. IRS regulations require EIN holders to report changes in the responsible party within 60 days. They do this by completing Form 8822-B, Change of Address or Responsible Party—Business, and mailing it to the address on the form. Have all employees complete these forms Form I-9, Employment Eligibility Verification U.S. Citizenship and Immigration Services Form W-4, Employee’s Withholding Allowance Certificate Pay business taxes The form of business determines what taxes must be paid and how to pay them. Visit the state website Prospective business owners should visit their state’s website for info about state requirements. Previous Post 10 ways to outsource your firm’s tax prep Next Post 5 strategies for staff recruitment and retention Written by Intuit Accountants Team The Intuit® Accountants team provides ProConnect™ Tax, Lacerte® Tax, ProSeries® Tax, and add-on software and services to enable workflow for its customers. Visit us at https://proconnect.intuit.com, or follow us on Twitter @IntuitAccts. More from Intuit Accountants Team Comments are closed. Browse Related Articles Tax Law and News Small business tax resources for your clients Client Relationships Ensure your clients have a financial safety net if a di… Client Relationships Resources to Educate Your Clients on Taxes and Finances Tax Law and News Tax concerns for clients who close their businesses Tax Law and News IRS Issues Guidance on TCJA Changes to Business Expense… Intuit® Accountants News Intuit provides resources supporting your accounting pr… Tax Law and News Summer activities could affect your clients’ retu… Tax Law and News IRS Announces New Employer Tax Credit for Paid Family a… Tax Law and News Advising Clients on Type of Entity Tax Law and News IRS Releases Draft of QBI Section of Publication 535