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News EssentialsThe Newsroom TopicsIRS Resources |
Issue Number: IR-2024-123Inside This Issue
National Small Business Week 2024 begins; IRS offers tax resources, information to nation’s entrepreneurs
WASHINGTON – The Internal Revenue Service today offered helpful information to entrepreneurs in anticipation of the upcoming kick-off of National Small Business Week, celebrating and recognizing the crucial contributions America’s small businesses make to the nation’s economy.
Each year, the U.S. Small Business Administration spearheads National Small Business Week, helping entrepreneurs with resources, benefits and other important business startup information that small business owners can use to launch their enterprises. This year’s celebration — Building on America’s Small Business Boom — runs from April 28 through May 4.
The Internal Revenue Service is a partner in the National Small Business Week celebration, and this year the IRS will be showcasing numerous resources to help small business entrepreneurs learn and understand their tax responsibilities and benefits. Throughout the week, IRS will be publishing helpful information in its popular Tax Tips e-News publications, as well as on IRS social media platforms including Facebook, X (formerly Twitter), LinkedIn and Instagram.
Next week, the IRS will share several important tax topics to help small business entrepreneurs prosper and grow:
Seeking to start a small business involves several important considerations related to tax issues:
How to get an Employer Identification Number
Most business owners need an Employer Identification Number (EIN), a permanent form of identification that, in many cases, must be used for filing a tax return and can be used for various business needs such as opening bank accounts. Businesses can get an EIN online immediately at IRS.gov, and it’s free.
Choosing a business structure
Small business owners, as taxpayers, must decide on what the most appropriate business structure should be for their enterprise when they start their new business. The business structure they choose dictates the type of income tax return form that the business owner will file each year. Some common business structures include:
Understanding business taxes
Federal law requires all individuals, including small business owners, to pay taxes on all income earned. This typically involves making quarterly estimated tax payments for small business owners and self-employed individuals. How business taxes are paid depends on the business structure that an entrepreneur has chosen. The following are the four generally recognized business tax types:
Choosing a “tax year”
A “tax year” is an accounting period for reporting income and expenses. Small businesses can choose which tax year works best for their operational needs:
Be a responsible recordkeeper
Maintaining well-organized business records not only helps in tax return preparation, but also assists small business owners in preparing financial statements, identifying income sources, tracking deductible expenses and monitoring their business progress. Small business owners should retain their business records for at least three years.
More small business information
Finally, for more information on a broader range of topics and answers to small business tax questions, visit the IRS website at IRS.gov.
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