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How to Make a Business Tax Entity for Write Off/Filling? (Real Biz)

Discussion in 'Business & Tax Advice' started by Jobless, Dec 3, 2012.

  1. Jobless

    Jobless Junior Member

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    Hey guys, I've got a fully mapped out and finished business plan I'm going to start up. I've gotten pretty much everything taken care of, except the bitch that is the IRS.

    I'm at a complete loss at what to even look for when it comes to taxes.

    Basic Info:
    I'll be producing a product with a trade, and selling it online; that's all. No food, no hazmat, or ORM materials.
    I will own, operate, and manufacture everything myself, but I my need to hire in the future once fully ramped up.

    So, what do I need to do beforehand in order to file expenses and profits properly and not get slapped around by Sammy? Just an LLC, or is there more?
     
    Last edited: Dec 3, 2012
  2. GauravJ

    GauravJ Power Member

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    As a tax consultant I can say one thing with surety is that to claim expenses keep them vouched i.e. proper document supporting such a claim and secondly keep abreast yourself about various tax date deadlines so as to avoid late payment penalty and unnecessary troubles and this Irrespective of the country from where you are operating.
     
  3. davjav

    davjav Newbie

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    I suggest you seek the help of an accountant. Their advice will be worth far more than their cost. I made the mistake of not being very organized with my record keeping last year. Compiling all the documents and data I needed at the end of the year was a big hassle. Even if you don't consult with a tax professional, be sure to meticulously keep track of everything (expenses, refunds, income) to make it easier on yourself.
     
  4. Moneyman94

    Moneyman94 Junior Member

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    Most important is to find an accountant that specializes in business taxes. I got screwed with one who said he did but had no clue what he was doing.

    I would also consult someone that knows what they are doing with entity structuring (accounts dont always fully understand the proper uses of hem).

    The type of structure and what state you put it in (assuming the US) will matter. LLC's have been considered the darlings of entities but they have run into some case law losses lately so an LP might be better. A "C" corp offer some benefits over the others because of carrying losses to the next years.

    The IRS just wants you to have a method that they can track who you are and what you do so they can tax you on it.

    Good Luck