Launching a Small Business? Here are Some Tax Considerations
Whether you’re starting a business as a single member LLC or sole proprietor, there are some tax considerations to keep in mind. Holly Lieser, senior manager at 415 Group, explains the importance of recordkeeping and working with a trusted advisor—even if you have a qualified individual performing these duties in-house.
Anytime a new entity is structured, the owner(s) will have to plan for tax considerations like the pass-through deduction, reporting responsibilities, home office deductions, saving for retirement and more. Every business starting out needs to consider these not only before launching, but also throughout the life of the business.
If you, as the business owner, have the time, experience, and resources to dedicate to these items, you can do many or all of these items on your own. Other times, it’s best to either have an internal person take on the responsibility or outsource to a firm like 415 Group.
Regardless of how you handle tax rules and related considerations, recordkeeping is one of the most important items to consider. In fact, every item listed in the main article will depend on accurate and timely recordkeeping.
Small business owners often overlook the importance of recordkeeping. They tend to know what is happening, but often bypass documenting transactions. At 415 Group, many of our clients use QuickBooks to keep their financial information organized. There are many other accounting software programs available for recordkeeping, so you just need to find what works best for you—and be consistent with it.
At 415 Group, we can help small business owners and high-growth startups by providing accounting and consulting services to every aspect of a new business. This includes services from QuickBooks consulting to tax compliance. That way, owners can focus on what they do best—running their business—instead of being bogged down in recordkeeping and staying on top of tax rules.
If you’re gearing up to launch your own business, reach out to us today to find out how we can help.