Just starting out and setting things up like accounts payable and receivable? Simply trying to get a handle on things? You need to get some accounting help or get an accounting strategy in place. There are few basic things listed below from the blog Less Everything that you can use as parameters to get yourself organized and off to a good start. We have two words for you: sole proprietor.
Help yourself out by getting great advice and keeping it simple.
- Keep it simple - This means sole proprietorship. Opting for this form of ownership means less complexity when it comes to communication, corporate filings and the IRS.
- Concentrate on building your business and not on the IRS. As a sole proprietor, the IRS will not even know you exist until after you file your first personal income tax return.
- Over 90% of small businesses fail or change ownership within the first five years. Plan your business to thrive but if it fails under a sole proprietor you simply stop doing business.
- How do you get paid as a sole proprietorship? Simply take the money out as a draw. No payroll taxes or quarterly forms needed. Most start ups lose money for the first several years, so keep your day job to pay your living expenses.
- After you pass the five year hurdle, then you can talk with a CPA about another entity type that might save you taxes. Again a simple bookkeeping entry transfers all of the business assets from the sole proprietorship into the new entity without any tax penalties.
Help yourself out by getting great advice and keeping it simple.
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