Know your tax responsibilities

In addition to understanding the legal implications of your business, it is important to know your tax responsibilities. You can receive tax advice and services from a Certified Public Accountant (CPA) or an Enrolled Agent. To be an Enrolled agent requires passing an Internal Revenue Service examination and a background check by the IRS. Click on the links to find a CPA or an Enrolled Agent.

The IRS has considerable information on your tax responsibilities and lots of helpful educational information and training for small business, including video seminars. Also, the US Small Business Administration has a amount of free, useful information and links, grants and other forms of assistance for small and startup businesses. It is well worthwhile taking a deeper dive into their sites.

Get a tax number

As soon as you have the paperwork from the state in which your business is registered, you should get an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). You need this even if you don’t employ anyone. Go the IRS site, read the instructions, and complete your EIN application online. Within moments of completing your application, you will receive a letter with your tax number.

Separate your business from your personal finances

First set up a separate small business account with your local bank and obtain a business credit card.

While you can use paper to record your finances, consider getting user friendly accounting software such as Microsoft Accounting Express or Intuit Quickbooks Simple Start. These programs do not require a knowledge of accounting.