Introduction
This publication provides basic federal tax information for people who are starting a business. It also provides information on keeping records and illustrates a recordkeeping system.
Throughout this publication we refer to other IRS publications and forms where you will find more information. In addition, you may want to contact other government agencies, such as the Small Business Administration (SBA). See How To Get Tax Help , later.
In addition to knowing about federal taxes, you need to make some basic business decisions. Ask yourself:
•What are my financial resources?
•What products and services will I sell?
•How will I market my products and services?
•How will I develop a strategic business plan?
•How will I manage my business on a day-to-day basis?
•How will I recruit employees?
The Small Business Administration (SBA) is a federal agency that can help you answer these types of questions. For information on how to contact the SBA, see How To Get Tax Help , later.
Determining Which Type of Business to Use
The most common forms of business are the sole proprietorship, partnership, and corporation. When beginning a business, you must decide which form of business to use. Legal and tax considerations enter into this decision. Only tax considerations are discussed in this publication
Your form of business determines which income tax return form you have to file. See Table 2 to find out which form you have to file
This publication provides basic federal tax information for people who are starting a business. It also provides information on keeping records and illustrates a recordkeeping system.
Throughout this publication we refer to other IRS publications and forms where you will find more information. In addition, you may want to contact other government agencies, such as the Small Business Administration (SBA). See How To Get Tax Help , later.
In addition to knowing about federal taxes, you need to make some basic business decisions. Ask yourself:
•What are my financial resources?
•What products and services will I sell?
•How will I market my products and services?
•How will I develop a strategic business plan?
•How will I manage my business on a day-to-day basis?
•How will I recruit employees?
The Small Business Administration (SBA) is a federal agency that can help you answer these types of questions. For information on how to contact the SBA, see How To Get Tax Help , later.
Determining Which Type of Business to Use
The most common forms of business are the sole proprietorship, partnership, and corporation. When beginning a business, you must decide which form of business to use. Legal and tax considerations enter into this decision. Only tax considerations are discussed in this publication
Your form of business determines which income tax return form you have to file. See Table 2 to find out which form you have to file
