Sacramento, CA Accountant for Start Ups
Our Sacramento accountants for start ups provide a wide variety of business tax planning services for start up companies in California. Call today.
If you are interested in establishing a business, you are likely aware of the dedication and hard work it will take to make your business successful. There are various elements that go into creating a profitable business like choosing the right business structure and ensuring that you keep detailed records. Fortunately, you do not have to handle these tasks alone. If you require financial assistance for your startup, contact an experienced Sacramento accountant for startups. The accounting team at Cook CPA Group is ready to help you face the challenges associated with founding your own business. Our firm has worked with businesses in Sacramento, Roseville, and across the State of California, and we would be honored to work with you.
5 Tax Issues New Startups FaceWhen establishing your business, tax regulations are likely the last issue that you are looking forward to handling. However, creating a system to manage your tax liability will make it easier on yourself once tax season rolls around. The following is a list of common tax issues that new business owners will face.
Choosing the Right Business StructureSelecting the business structure that works best for your short- and long-term goals are imperative for new business owners. Each type of business structure will have different benefits and also different types of tax liabilities. For example, C corporations experience double taxation; the corporation is taxed when profits are earned, and when dividends are distributed to shareholders. Whether you elect to operate your business as a corporation, sole proprietorship, or a limited liability company, you should perform thorough research to determine whether this structure works for you.
Start a Business AccountThe commingling of personal and business expenses is one of the most dangerous mistakes a business owner could make. One issue that could arise from the commingling of assets is making errors on your tax returns because you have made it impossible to separate business and personal expenses. Another issue with mixing personal and business expenses may occur if your business is sued. If a court cannot find a difference between you and your business in terms of company assets, it is possible that the legal protections provided by your company will be ineffective. This means that a person may be able to win a judgment against you directly instead of against your company.
Learn What Costs are DeductibleEvery potential business owner should know that some startup costs are tax deductible. The following is a list of deductible startup costs:
- The cost of training employees
- Expenses for legal fees
- Cost of building relationships with vendors and suppliers
- Expenses related to advertisements before opening your business