Starting a New Startup Business

From washing cars and selling cookies, to expensing vehicles and buying assets — you’ve come a long way.

Whether you washed cars for pocket money, sold cookies to raise money for your organization, or did something else to earn money as a kid, you’ve probably had the entrepreneurial spirit your whole life. Now that you’ve taken your business dream into the marketplace, you’ll find that things are different than they used to be.

We’ve put together a few tax tips that will make things easier for you (and please Uncle Sam), including:

  • How to choose an accounting method
  • What to do about estimated taxes
  • Which expenses to track

When you’re launching a startup, you have a lot of things on your mind, and tax considerations probably aren’t among them. But there are a few simple things you can do right now and in the months ahead to make things easier on yourself and your startup at tax time.

Take a Number

You’re required to associate your startup with an ID number so the IRS can process your tax return and any other forms and documents you file.

Cash or Accrual, the Choice Is Yours — Maybe

The two most used ways to report your startup’s income and expenses for accounting purposes are the cash basis and the accrual basis. Each has different rules, and the one you choose can affect which tax year some of your income and expenses fall into.

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