Anyone starting or thinking of starting a new business should be aware of their federal tax responsibilities. Here are the top seven things the IRS wants you to know if you plan on opening a new business this year.

1. First, you must decide what type of business entity you are going to establish. The type your business takes will determine which tax form you have to file. The most common types of business are the sole proprietorship, partnership, corporation and S corporation.
2. The type of business you operate determines what taxes you must pay and how you pay them. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax.
3. An Employer Identification Number is used to identify a business entity. Generally, businesses need an EIN. Visit IRS.gov for more information about whether you will need an EIN. You can also apply for an EIN online at IRS.gov.
4. Good records will help you ensure successful operation of your new business. You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.
5. Every business taxpayer must figure taxable income on an annual accounting period called a tax year. The calendar year and the fiscal year are the most common tax years used. 
6. Each taxpayer must also use a consistent accounting method, which is a set of rules for determining when to report income and expenses. The most commonly used accounting methods are the cash method and an accrual method. Under the cash method, you generally report income in the tax year you receive it and deduct expenses in the tax year you pay them. Under an accrual method, you generally report income in the tax year you earn it and deduct expenses in the tax year you incur them.
7. Visit the Business section of IRS.gov for resources to assist entrepreneurs with starting and operating a new business.

To get the latest IRS news and products and services, subscribe to e-News for Small Businesses on IRS.gov at http://www.irs.gov/businesses/small/article/0,,id=154825,00.html, click “Subscribe Now” at the bottom of the page and enter your e-mail address.

 

The IRS Small Business and Self-employed Tax Center at http://www.irs.gov/businesses/small/index.html has more information about starting and operating a new business.

Announcing our newest workshop...

Cracking the Code: Bookkeeping Basics

 

Is the process of bookkeeping a mystery to you?  Are you a new entrepreneur sorting out your options for bookkeeping methods?  Are you an existing business owner who needs a better grasp of your financial picture?

 

In this two-hour workshop, you will learn key differences between bookkeeping and accounting, the fundamentals of every bookkeeping system, and how to understand the flow of financial paperwork.

Cost for the workshop is normally $49.

Register now for our special summer 2009 rate of $39.

 

For more information, or to register, call 1-800-422-0374,

or email info@entrepreneurfund.org,

or register online at http://www.entrepreneurfund.org/register.html

 

Pre-registration is required for all workshops.

Northeast Entrepreneur Fund is now on Facebook.

 

Check us out... Click Here!

 

Presented by the Duluth Workforce Center

 

Anatomy of an EEO Investigation:

De-Mystifying the EEOC Charge

 and Investigative Process

 

A rare opportunity to hear directly from an agency insider:

 

Maria E. Flores, Program Manager

U.S. Equal Employment Opportunity Commission

 

* how charges are filed      

* the types of charges EEOC receives        

* requests for information and documentation

* onsite investigations    

* types of decisions issued            

* determining damages/ remedy   

* benefits of settlement and mediation  

* practical tips on preparing your responses,     

* and MUCH MORE !

 

Tuesday August 25^th

9 a.m. – 11 a.m.

 

Duluth Workforce Center

(Government Services Bldg.)

Conference Room A

320 W 2^nd St. Ste 205

 Duluth, MN 55802

     *Please RSVP @ 218-529-622

This Month's Featured Entrepreneurial Resources...

 

The Minnesota Department of Employment and Economic Development and the Wisconsin Department of Workforce Development have several small business publications available at their websites.  Many of these can be downloaded or viewed electronically, and some can also be ordered on book or CD at no cost to you.  Topics pertain to state laws and regulations for starting a business, franchising, employer's guides, industry reports, and much more.

Minnesota DEED Small Business Publications:

http://www.deed.state.mn.us/publications/
 

Wisconsin DWD Small Business Publications:

http://dwd.wisconsin.gov/dwd/publications/viewsort/default.asp?ID=NEW