What people need to know when starting a business

The IRS knows that understanding and meeting tax obligations is vital to the success of all businesses, especially a new one.

Here are some tips for new entrepreneurs.

*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.

• Partnership: An unincorporated business with ownership shared between two or more people.

• 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.