Basic tax and compliance steps
Early compliance reduces risk and prevents surprises. Address entity-level taxes, payroll taxes, sales tax, and local regulatory requirements from the start.
Key actions:
- Choose the appropriate legal entity based on taxes and liability.
- Register for an Employer Identification Number (EIN).
- Set up payroll correctly to withhold and remit taxes.
- Understand sales tax obligations where you have nexus and register where required.
- Keep accurate books and reconcile bank accounts monthly.
Practical tips
- Use accounting software to track income and expenses.
- Keep receipts and document business expenses for deductions.
- Consult an accountant for tax planning and quarterly estimated tax payments.
When to seek professional help
If you have multiple states, international customers, or complex equity compensation, consult a CPA or tax attorney to ensure compliant setup and to optimize tax strategies.