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Make a business plan--
Choose your business structure--
Choosing the structure of your business will determine your legal and tax responsibilities and implications. There are many different types of business structures and it is important that you decide which structure will work best for your business plan. Types of business structures include sole proprietorships, limited liability company (LLC), partnership, corporations, and S Corporations. The most common form of business structure is sole proprietorship. Each structure has unique advantages and disadvantages.
Filing and paying taxes--
The first thing to establish when figuring out the proper method for paying taxes on your business is to determine whether it is a business or a hobby. There are unique requirements and advantages to being a business or a hobby. If it is decided that you have a business then you need to obtain a federal business tax id. Then you need to find out what your federal and state tax obligations are and when your tax year starts.
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