Are you thinking of starting a new business? I have had several clients with new businesses this year, and thought I would share some advice on what to do when you are ready to take that step. 
My best piece of advice is to contact an accountant and an attorney, while I know many of us automatically think that is going to cost a lot of money, it can save you money in the long run. You should learn all of the facts about how a certain type of company can limit your liability and how much annual reporting is required. You should also know what the tax situation is of each and what to expect to pay in taxes.
The internet has made it easy for somebody to log on and set up a company or set up a federal ID or even find operating agreements to use for your business, but the internet can be very dangerous in this aspect. In fact, I have had several instances in the past year of just that! You need to make sure your operating agreement, filings with the state and filings with the IRS all match each other as well as your intent. This is why I highly recommend individuals talk to both accountants and attorneys before they file anything on there own. You can save money by doing the set up correct the first time.
It costs much more in accounting and attorney fees, as well as possible state and federal penalties by setting up a company incorrectly and not filing the appropriate paperwork timely. The way a company is set up determines the forms a company is required to file and the due date of each of those forms. In addition by talking to an accountant before you start you can get an idea of how to track your income and expenses from the start to make the year-end go smoother.
The Wassman CPA Services website and blog is meant to offer general information to our readers. The information provided is not intended to replace or serve as a substitute for any accounting, tax or other professional advice, consultation or service. You should contact Wassman CPA Services for advice concerning specific matters prior to making any decisions.
