For the past couple years, the focus has been on keeping businesses afloat as we deal with COVID-19, but now with the economy starting to rebound there are many entrepreneurs out there looking for a fresh start. To help potential business owners get started with evaluating their options, the Internal Revenue Service (IRS) has developed a list of important items to consider. You can see that list here on the IRS website. The aim of the list is to emphasize that it is essential to evaluate everything when setting up a new business, including the tax responsibilities that come along with it.
At the start, the primary focus for a new business owner should be the type of structure chosen. This will determine what type of income tax return a business taxpayer needs to file each year. In addition to income taxes, there are also other types of taxes to consider, including self-employment, payroll, sales, and excise taxes. There could also be added complexities when it comes to certain taxes if your business operates online or in more than one state. The IRS provides links to relevant state websites to help you evaluate specific tax issues that may arise depending on where the business is operating.
All the complexities and decisions that need to be made early in the process make it very important for individuals to consult an attorney, accountant, or other trusted business advisor when considering starting a new business. At SDK we pride ourselves on being trusted advisors to our clients, so please do not hesitate to reach out to your SDK contact with any questions that you might have related to this topic. You can reach us at 612-332-5500 or through email at firstname.lastname@example.org.