One of the least favorite topics to address when starting a business is how you will file your taxes. Taxes are a big part of our lives no matter if you’re a business owner or a consumer, and they always seem to be complicated. For business owners, filing taxes adds a whole other level of complexity into the mix, so we’re here to help you out.
If you have yet to start your new business, keep in mind that you can either file for an LLC or Corporation; each of these business entity titles will provide you with certain tax benefits and drawbacks, so make sure you pay attention to the fine print, do your research, and even have a lawyer on hand. Below is a quick rundown on how company taxes work if you’re a small business owner.
How company taxes work for small businesses
Because so many of our customers are just starting their own businesses, we thought we’d keep celebrating Small Business Week with some helpful advice about tax structures.
Yeah, we know it’s a boring topic, but if you want to start a business, you’ve got to think about it.
The first decision many entrepreneurs face when starting their business is whether to file as a limited partnership or a corporation.
We’re experts at logo design, not tax law. But we thought we’d point to a few resources around the Internet that help explain the different options you have. Of course, you’ll want to consult your attorney and/or tax advisor before making your final decision.
Websites for business owners who need help with taxes
- First, check out what the IRS has to say about different business structures.
- Next, if you need help deciding which business entity is right for you, check out the business entity wizard at MyCorporation. The writers at Fortune Small Business recommend an LLC for most entrepreneurs.
- Also worth checking out: the experts at Biz Filings put together a list of similarities and differences to help you decide which structure is best for you.
- And here are a couple more articles about the differences from Small Business Trends, Forbes Ask an Expert, and a comparison chart from Money Alert.
Requirements may differ from state to state and may change over time. In addition, your unique situation will make one option better for you than another. So consider the details, then consult with your legal advisor before making a final decision.
Do you know of other online resources on incorporation and partnerships? Share them in the comments.
And good luck with your new small business, and don’t forget to make sure your LLC or Corp title is clearly visible in your logo design!