By ZentaxGo Team
The first month of a new business is busy, and finance tasks are easy to put off. These are the ones that are simple to do now and painful to fix later.
1. Choose a structure
Sole proprietorship, LLC, partnership, and corporation each carry different liability and tax treatment. Make the choice on purpose, ideally after a conversation with a professional.
2. Get an EIN
An Employer Identification Number is free from the IRS. You do not need to pay a third party to get one.
3. Open a separate business bank account and card
Do not run business spending through a personal account. It makes your books harder to keep and your taxes harder to file.
4. Register what your state requires
In Texas, businesses that sell taxable goods or services generally need a sales tax permit from the Texas Comptroller, and most LLCs and corporations are subject to the franchise tax. Other states have their own rules, so check with yours.
5. Start bookkeeping on day one
Choose accounting software, set up your categories, and keep receipts from the first transaction. Catching up months later is slower and less accurate.
6. Plan for taxes
Set aside a share of every payment you receive, and put your estimated tax dates in your calendar.
7. Pay yourself on purpose
How you take money out of the business depends on your structure. Owner draws and payroll are treated differently, so decide how you will do it before you start.
What to do next
Work through the list in order. If you want help with any step, a consultation is a good place to ask.
This article is general information, not tax or legal advice for your situation.