Business Structure
Tax Tips for Brand-New Businesses in Their First Year
The habits you set in year one echo for years. Get these tax basics right early and you'll save yourself expensive cleanup later.
01Choose Your Structure Deliberately
Sole proprietorship, LLC, or S-Corp each carry different tax and liability consequences. The default isn't always best — a quick professional conversation upfront can shape years of savings.
02Track Startup Costs From Day One
Money spent before you officially open — research, legal setup, initial marketing — can often be deducted or amortized. Capture it now; reconstructing it later is painful.
03Get an EIN and Separate Accounts
An EIN and dedicated business banking establish a clean line between you and the business, which matters for both taxes and liability protection.
04Set Up Bookkeeping Before You Need It
Starting with clean books beats reconstructing a year of transactions in April. Pick a system early and use it consistently.
05Plan for Self-Employment Tax
First-time owners are often blindsided by self-employment tax and quarterly payments. Set money aside from the first dollar so it's never a shock.
Have a question about your situation?
Book a free 30-minute consultation and we'll walk through it together.
Schedule a ConsultationThis article is general information, not individualized tax, legal, or financial advice. Every situation is different — reach out and we'll look at yours directly.