JeanMarie HindsOctober 29, 2009

Getting Started Start-Up Costs Hiring Employees Business Use of Home Use of personal vehicle & Travel expenses Estimated Tax Planning Retirement Plan and other benefits Additional Tips

Business Structure Employer Identification Number (EIN) Banking Keeping the records & accounting Equipment versus Supplies

A cost you could deduct if you were already operating an active business; and

A cost you incur before the day your active business begins.

Will be amortized over 180 months* May elect to deduct up to $5,000 in the first year

of business May be able to recover any remaining costs upon

disposition of the business

Analysis or survey of potential markets, products, labor supply, transportation, etc.

Advertisements for the opening Wages for employees being trained and their

instructors Travel and other necessary costs for securing

distributors, suppliers, or customers Consulting or executive fees for professional

services If purchasing a business, only the costs for a

general search or preliminary investigation

Employee or contractor? Set up accounts with the state WDOR for withholding DWD for unemployment Workers compensation coverage Employee Benefits

1. Your use of the business part of your home must be:

Exclusive Regular For your trade or

business, AND

2. The business part of your home must be:

Principal place of business, OR

Where you meet with customers in the course of your business, OR

A separate structure

Indirect Expenses:

Utilities Real estate taxes Property Insurance Depreciation

Direct Expenses:

Furnishings Repairs to office Improvements to

office Depreciation

Actual Expenses: Fuel License Repairs & maintenance Depreciation Insurance Plus Parking & Tolls

Standard Mileage Rate:

For 2009, 55 cents per mile

Plus Parking & Tolls

Based on projection of income for the year “Self-employment tax” is like FICA for

employees and it is due on net profit Add to income tax to get projected tax liability Law says 90% of estimated or 100% of prior

year amount must be paid in by year end. Dates are April 15, June 15, Sept. 14 and Jan.

15 Underpayment Penalty will be assessed Both federal and state estimated tax

Depends on the biz structure If sole-proprietor, start with IRA Health Savings Accounts Medical insurance Life insurance Disability insurance

Time is money: Add up your own receipts Do not assume that tax documents you receive

are correct, check them! (W-2s and 1099’s) Bring along ALL business expense and income

records Get tax planning advice from a tax professional

BEFORE the year ends Consult with your tax preparer BEFORE

responding to any tax penalty notices