Goldburd | Goldburd McCone LLP

For nationwide tax guidance, call:
212-235-1537 or toll-free at 866-712-9505.

Goldburd | Goldburd McCone LLP

For nationwide tax guidance, call: 212-302-9400 or toll-free at 844-653-2873.

Serving Individual And Corporate Tax Clients Nationwide From Our New York, New Jersey, Florida And California Offices

Steven Goldburd and Benjamin A Goldburd

Since 1983, our tax firm has skillfully represented individuals and corporations across the United States and around the globe from our offices in New York, New Jersey, California and Florida.

Tax Considerations When Starting a Business

On Behalf of | Sep 17, 2017 | Business Formations

  • Entity selection: Deciding to file as an S-Corp, a C-Corp, a partnership, Limited Liability Company (LLC) or sole proprietorship can have significant tax implications. In an S-Corp, profits, losses, deductions and credits flow from the corporation directly to its shareholders. As a result, shareholders are not taxed on their corporate and personal income. S-Corps must meet a number of requirements to be eligible for this designation. In a C-Corp, the business is recognized separately from shareholders. Partnerships are taxed similarly to S-Corps, in that any income derived from the partnership passes through to the company’s partners. Limited Liability Companies can be treated as corporations or partnerships depending on various factors.
  • Potential business taxes: All businesses are responsible for paying income taxes. Corporations, LLCs and sole proprietorships are responsible for filing an annual tax return. Partnerships file what is known as an information return. Businesses with employees must pay employment taxes. Employment taxes cover an employee’s Social Security, Medicaid, unemployment taxes and federal tax withholding. Sole proprietorships are responsible for paying self-employment taxes. This tax includes Social Security and Medicare taxes. Certain types of companies may also be responsible for paying federal excise taxes.
  • Accounting methods: New businesses must decide on the best way to report its expenses and income. Companies can select the cash method or the accrual method. Businesses report income and deduct expenses in the year they are received or paid under the cash method. With the accrual method, businesses must report income the year it is earned and must deduct expenses the year it is incurred.
  • Employer identification numbers (EINs): Businesses must apply online to receive an EIN for tax purposes.

Obviously, tax considerations are or paramount importance when starting a business. A tax lawyer can provide essential guidance to getting a company off on the right foot. The tax attorneys at Goldburd McCone LLP have successfully counseled businesses in an array of industries over the past three decades.