Accounting 101 for Small Business Startups

proprietorship, but there are more to choose from. Your choices include partnership, limited partnership, limited liability company (LLC), or an S-corp. Knowing which to choose can be confusing, so you might want to talk to an accountant or, at the very least, do some research so you understand the basics.

2. Filing deadlines are different for small businesses than for individuals. We all know the April 15th deadline for personal tax returns, but corporate and business returns are due in March. This mistake could cost you extra fees and penalties for filing late.

3. You’ll need an EIN (employer identification number) to file your taxes and to be recognized by the state. How do you get one? By registering your business with your state. You should be able to find this information at your state’s web site.

4. Don’t forget to get business insurance when you’re tallying up those business expenses. Whatever risks are associated with your business, you need to get the proper small business insurance to protect you AND your new business.

5. Choose your accounting system and software. Even if you plan on having an accountant, you still need to have a basic understanding of your business’s finances. Again, if you have any questions, you should talk to an accountant to help you choose correctly.

6. Are you hiring an accountant and/or bookkeeper? If so, there’s no reason to