The legal structure you choose for your business will impact the way you calculate and pay your taxes. You should consult an accountant to ensure that you are meeting all tax requirements for your business structure to avoid problems with the IRS. Here are a few of the tasks involved:

• Register with the IRS for payment of federal taxes - All businesses are required to pay taxes to the federal government. The legal structure, whether there are multiple employees or a sole proprietor, and the type of business you are conducting determine which taxes apply and the timeline for making payments to the federal and state (where applicable) departments of revenue. Most businesses are required to make regular payments of estimated tax throughout the year. For more information, visit the IRS website. If you have questions about determining your federal tax liability or your payment schedule, contact the IRS at (800) 829-1040.
• Start your tax year - You will need to decide whether to pay taxes on a calendar year or fiscal year schedule. More information on these schedules is available from the IRS website.
• Learn about the types of federal business taxes - There are four general types of business taxes: income tax, self-employment tax, employment taxes and excise taxes.
• Tax-Exempt Status - If you are operating a non-profit organization, you may qualify for tax-exempt status.
• State Sales Tax - Some states charge state sales tax on goods sold. Contact your state government to see if this applies to you and to learn about procedures for filing.
• State Corporate Tax - Some states charge a yearly corporate tax. Contact your state government to see if this applies to your business and to learn how to file.