Ken Hutto

Ken Hutto

Kenneth Hutto is a successful tax attorney and CPA from Lakeland, Florida. While his practice is focused on the Florida area, he gives this simple tax preparation information to anyone with a start-up to make sure your business is ready the right way from the start. Here are some simple tips for start-ups that can save you a lot of headaches in the future and set your path to success as the shortest runway necessary.

1. Choose the Right Business Structure

There are many options for you business structure: LLC, S-Corp, C-Corp and a few other choices depending on what state you are in. Choosing the right one and sticking with it can lead to success. You must be aware of the different tax rules that apply to each corporate structure. It’s always best to consult with an expert like a tax lawyer or a lawyer who specializes in start ups to make sure that you’re making the best tax choices.

2. Accurate Record Keeping is Key

It seems obvious but keeping good accounting records is key to your tax success in a new business or start up. Make sure you have a bookkeeper. If you are too small to hire someone full time, use a part-time book keeper or use one of these newer services that can help you with bookkeeping remotely. Make sure to track income, expenses, payroll and anything involving money to keep your business on the up and up.

3. Get an EIN ASAP

Your EIN is like a social security number for your business. Make sure that you get one as soon as possible so you can perform essential operations like paying employees and contractors. Some services might use your EIN simply for identification and verification, which is why having one is so important.

4. Get Your Deductions in Order

Some startup owners believe that you can just deduct everything under the sun but that’s just not true. You can deduct many of your start up costs, office expenses and even professional services, but what you really need to do is track all your expenses and then contact a tax professional to make sure that you are only making allowable deductions.

5. Spend Small to Save Big on Taxes

If you want to pay less taxes you do need to spend a bit of money. It might seem counterintuitive but it could help to free up your mind from the stress of traveling for business. Whether you choose to attend a conference you weren’t sure about or you get the laptop that was one step fancier than the one you had your eye on, investing in your company is always a good idea, and a side benefit to that is that you might save on taxes.

6. Talk to a Local Professional

If you are starting up a business you really need to  talk to a local tax professional in your area. Tax laws of the state, city, and town you are in or where you are incorporated can impact your bottom line significantly. This article is not intended to give legal advice, it is merely some useful tips you should know even before hiring your own legal and financial advisers. Always speak with a trained professional licensed to do business in your jurisdiction. If you are based in Florida, you can definitely reach out to Ken Hutto for further answers.