MAIN Business Small Business Taxes

If taxes were the first thing that came to mind when they first dreamed of opening their own business, many entrepreneurs probably wouldn't be in business today!

But there is help out there.

Business Taxes 101

First, decide on what kind of company you'll be filing as.

Different business tax structures each have their advantages. However, many new business owners usually opt for the simpler sole proprietorship or general partnership structure before graduating to the alphabet soup of LLC, C corp or S corp entities.

Next, file for an EIN number with the IRS. The EIN (or Employer Identification Number) is your permanent number and can be used immediately for opening a business bank account, applying for business licenses, and filing a tax return.

Then comes the the nitty gritty of profit and day-to-day expenses. And here is where many small business owners and independent contractors go slightly bonkers — keeping track of income, outgo, related receipts — and storing those pesky records in an orderly way.

If you're lucky enough to have someone on your team with bookkeeping experience or a knack for numbers, great. Provide small business software like Quicken or other finance management tools and assign the job to them.

More likely, you'll find small business accounting is usually best assigned to a CPA, especially as your small business begins to grow.

The good news? Business deductions!

Despite the headaches of keeping your books, the IRS is very generous when it comes to helping businesses grow, and will allow the small business owner to shave thousands of dollars a year off the costs of operation. These include initial start up costs, promotion and advertising, travel and transportation, office equipment, education, and more.

More about small business taxes around the Web:

Around the Web, find more information and helpful resources on small business taxes with advice from the experts including tips and techniques on avoiding common mistakes, keeping the books and paying your small business taxes on time...

Small Business Taxes & Management - Get U.S. publications in a business library for a fee, but peruse the rest of the comprehensive free resources available including a glossary, and links to related small business issues, IRS and tax info.

Small Business and Self-Employed One Stop Resources - The inside scoop from the IRS on paying taxes on your small business with online workshops, resources for self-employed and independent contractors, plus detailed info on EIN numbers and related forms and publications.

Small Business Taxes FAQ - Nolo - The most common questions asked by American small business owners are answered at this online legal clearinghouse including Q&A on starting up, deductions, HR concerns, incorporation, and working from home.

A new business tax primer - BankRate's prime source of information on what to watch out for, with links to the appropriate IRS forms and a roundup on related tax info in all 50 U.S. states.

CCH Business Owner's Toolkit - Controlling Your Taxes - Advice and detailed information and how to avoid the usual pitfalls when paying payroll, U.S. federal, state and sales tax on your small business.

Small Businesses & Self-Employed Individuals - Premier site for Canada small business owners with details on small business info-fairs, corporation income tax, T4 information, pension plans, employment insurance and more.

Business Link | Tax and Payroll - Comprehensive info on UK business issues including VAT, National Insurance, capital allowances, business expenses, records and reporting, plus info on filing business taxes online.

Just Tax guides - User friendly, jargon-free guides to UK small business concerns with overviews on starting up, incorporation, capital gains, and more.

also see in Your Money --> IRS Tax Forms | Home Office Deductions

also in Small Business --> Creating a Business Plan

Small Business Financing | Small Business Law