How to Claim Taxes When Opening a Small Business
Obtain a tax identification number from the Internal Revenue Service (IRS)., Establish the type of business entity you are starting., Claim tax deductions for opening a small business., Pay employment taxes.
Step-by-Step Guide
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Step 1: Obtain a tax identification number from the Internal Revenue Service (IRS).
This is called an EIN, which stands for Employer Identification Number.
You can apply for it online at www.irs.gov. -
Step 2: Establish the type of business entity you are starting.
The structure of your business will determine the type of taxes you must claim and pay.
Decide whether you are a sole proprietorship, corporation, partnership or a Limited Liability Company (LLC).
You will need to pay income tax, self-employment tax, taxes for employers and excise taxes depending on your business.
The forms will differ depending on your business structure. , These include business expenses and capital expenses.
Claim capital expenses on your taxes for things such as purchasing property or equipment to get your business started.
Claim business expenses that are related to your business.
For example, there is a home office deduction if you are running your business from home.
You can also deduct for travel, food and entertainment expenses related to your business. , You will need to claim payroll taxes for employees, or pay a self employment tax if you are the only person employed by your business. -
Step 3: Claim tax deductions for opening a small business.
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Step 4: Pay employment taxes.
Detailed Guide
This is called an EIN, which stands for Employer Identification Number.
You can apply for it online at www.irs.gov.
The structure of your business will determine the type of taxes you must claim and pay.
Decide whether you are a sole proprietorship, corporation, partnership or a Limited Liability Company (LLC).
You will need to pay income tax, self-employment tax, taxes for employers and excise taxes depending on your business.
The forms will differ depending on your business structure. , These include business expenses and capital expenses.
Claim capital expenses on your taxes for things such as purchasing property or equipment to get your business started.
Claim business expenses that are related to your business.
For example, there is a home office deduction if you are running your business from home.
You can also deduct for travel, food and entertainment expenses related to your business. , You will need to claim payroll taxes for employees, or pay a self employment tax if you are the only person employed by your business.
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Laura Hart
Writer and educator with a focus on practical practical skills knowledge.
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