Business Startup Tax Checklist

Starting a new business is exciting—but navigating taxes can feel overwhelming. Getting your tax planning right from the start can save you money, avoid penalties, and set your business up for success. Here’s a quick checklist for new business owners.

1. Choose the Right Business Structure

Your business structure affects your taxes, liability, and paperwork. Common options include:

• Sole proprietorship

• LLC

• S Corporation

• Partnership

Consult a CPA to determine which structure best fits your goals.

2. Obtain an EIN

An Employer Identification Number (EIN) is required for tax filings, opening a business bank account, and hiring employees. You can get one for free from the IRS.

3. Register for State & Local Taxes

Depending on your location and business type, you may need:

• Sales tax permit

• State income tax registration

• Local business licenses

4. Set Up a Business Bank Account

Keep personal and business finances separate. A dedicated business account makes tax filing easier and helps track deductions.

5. Understand Your Tax Obligations

Know the taxes your business may owe, such as:

• Income tax

• Self-employment tax

• Payroll tax (if you have employees)

• Sales tax

6. Track Expenses From Day One

Keep organized records of all business expenses: office supplies, software, marketing, travel, and more. Proper documentation ensures you maximize deductions.

7. Choose Accounting Software

Even a simple software like QuickBooks, Xero, or Wave can streamline bookkeeping, track expenses, and simplify tax filing.

8. Plan for Estimated Taxes

Many new business owners need to pay quarterly estimated taxes. Work with a CPA to calculate and schedule payments to avoid penalties.

9. Keep Up With Deadlines

Mark key tax deadlines on your calendar—both federal and state. Missing deadlines can lead to costly penalties.

Starting your business with proper tax planning gives you peace of mind and positions you for growth. If you want guidance tailored to your business, schedule a consultation with a CPA today.