Practice Management Starting a business 101 Read the Article Open Share Drawer Share this: Click to share on X (Opens in new window) X Click to share on Facebook (Opens in new window) Facebook Click to share on LinkedIn (Opens in new window) LinkedIn Written by Intuit Accountants Team Modified May 10, 2024 2 min read The IRS knows that understanding and meeting tax obligations is vital to the success of your clients’ businesses, especially a new one. There are number of resources on IRS.gov with resources and information to help any client through the process of starting a new business. Choose a business structure The form of business determines which income tax return a business taxpayer needs to file. The most common business structures are: Sole proprietorship: An unincorporated business owned by an individual. There’s no distinction between the taxpayer and their business. Partnership: An unincorporated business with ownership shared between two or more people. Corporation: Also known as a C corporation. It’s a separate entity owned by shareholders. S Corporation: A corporation that elects to pass corporate income, losses, deductions and credits through to the shareholders. Limited Liability Company: A business structure allowed by state statute. Choose a tax year A tax year is an annual accounting period for keeping records and reporting income and expenses. A new business owner must choose either: Calendar year: 12 consecutive months beginning Jan. 1 and ending Dec. 31. Fiscal year: 12 consecutive months ending on the last day of any month except December. Apply for an Employer Identification Number (EIN) An EIN is also called a Federal Tax Identification Number. It’s used to identify a business. Most businesses need one of these numbers even if they don’t have employees. It’s important for a business with an EIN to keep the business mailing address, location and responsible party up to date. IRS regulations require EIN holders to report changes in the responsible party within 60 days. They do this by completing Form 8822-B, Change of Address or Responsible Party—Business, and mailing it to the address on the form. Have all employees complete these forms Form I-9, Employment Eligibility Verification U.S. Citizenship and Immigration Services Form W-4, Employee’s Withholding Allowance Certificate Pay business taxes The form of business determines what taxes must be paid and how to pay them. Visit the state website Prospective business owners should visit their state’s website for info about state requirements. Previous Post 10 ways to outsource your firm’s tax prep Next Post 5 strategies for staff recruitment and retention Written by Intuit Accountants Team The Intuit® Accountants team provides ProConnect™ Tax, Lacerte® Tax, ProSeries® Tax, and add-on software and services to enable workflow for its customers. Visit us online or follow us on X, Instagram, Facebook, and LinkedIn. More from Intuit Accountants Team Comments are closed. Browse Related Articles Tax Law and News When does a hobby become a business? Tax Law and News Is the IRS contacting your clients? Verify! Practice Management Practical uses of AI for productivity & client work Tax Law and News August 2025 tax and compliance deadlines Tax Law and News Big Beautiful Bill tax deductions for workers and seniors Advisory Services White paper: Scaling advisory services to your clients Tax Law and News Year-round tax planning tips for clients Practice Management Optimizing your firm for hybrid and remote work Grow your practice Scale your firm, your way Advisory Services Modern marriage issues: Postnup agreements