The first year of business is full of challenges, but tax planning doesn’t have to be one of them. A business tax strategist can help guide your startup through the tax maze, ensuring you avoid common pitfalls. Here are some essential tax considerations for startups in their first year:

• Choosing the Right Business Entity
  • The structure you choose—LLC, S-Corp, or C-Corp—affects your tax responsibilities. A tax consultant helps you choose the entity that minimizes tax liability.
• Understanding Self-Employment Taxes
  • As a business owner, you’ll pay self-employment taxes, which include Social Security and Medicare. A tax consultant ensures you’re making the correct payments.
• Tracking Expenses and Deductions
  • In the first year, it’s important to track all startup expenses like equipment, office supplies, and legal fees. A tax strategist helps you identify deductible items that reduce taxable income.
• Quarterly Tax Payments
  • Startups need to make estimated tax payments quarterly to avoid penalties. A tax consultant ensures you calculate and pay the right amount.
• Tax Credits for New Businesses
  • Certain tax credits, such as R&D credits, are available to startups. A business tax strategist can help you take full advantage of these opportunities.

By addressing these tax issues early, your startup will lay the foundation for smooth financial operations.

Need guidance with your startup's taxes? Contact Biz Tax Strategy and work with our expert tax consultants to ensure a smooth first year and beyond.