Starting a business can sometimes be an overwhelming process, especially when it comes to your federal tax responsibilities, but this is something you really want to get right from the start. Below are the top tips the IRS wants you to know if you plan on opening a new business this year.

• First, you must decide what type of business entity you are going to establish. The type your business takes will determine which tax form you have to file. The most common types of business are the sole proprietorship, partnership, corporation and S corporation.
• The type of business you operate determines what taxes you must pay and how you pay them. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax.
• An Employer Identification Number is used to identify a business entity. Generally, businesses need an EIN.
• Good records will help you ensure successful operation of your new business. You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.
• Every business taxpayer must figure taxable income on an annual accounting period called a tax year. The calendar year and the fiscal year are the most common tax years used.
• Each taxpayer must also use a consistent accounting method, which is a set of rules for determining when to report income and expenses. The most commonly used accounting methods are the cash method and an accrual method. Under the cash method, you generally report income in the tax year you receive it and deduct expenses in the tax year you pay them. Under an accrual method, you generally report income in the tax year you earn it and deduct expenses in the tax year you incur them.

At Harvard Business Services we like to see entrepreneurs helping each other. Scott Gerber at Entreprenuer.com agrees with this notion and is sharing a fantastic list of ten tips he wish he had known before he started his first business. Below is an excerpt:

1. Focus. Focus. Focus.
   Many first-time entrepreneurs feel the need to jump at every “opportunity” they come across. Opportunities are often wolves in sheep’s clothing. Avoid getting side-tracked. Juggling multiple ventures will spread you thin and limit both your effectiveness and productivity. Do one thing perfectly, not 10 things poorly. If you feel the need to jump onto another project, that might mean something about your original concept.
2. Know what you do. Do what you know.
   Don’t start a business simply because it seems sexy or boasts large hypothetical profit margins and returns. Do what you love. Businesses built around your strengths and talents will have a greater chance of success. It’s not only important to create a profitable business, it’s also important that you’re happy managing and growing it day in and day out. If your heart isn’t in it, you will not be successful.
3. Say it in 30 seconds or don’t say it at all.
   From a chance encounter with an investor to a curious customer, always be ready to pitch your business. State your mission, service and goals in a clear and concise manner. Fit the pitch to the person. Less is always more.

Read the full article here: http://www.entrepreneur.com/startingabusiness/youngentrepreneurscolumnistscottgerber/article203254.html

The Wall Street Journal has a great article with three helpful tips for naming your company. For many this is a hard task on the path of entrepreneurship but it is important to spend the time in the beginning brainstorming, so you get it right. Below is an excerpt from the article:

Three Best Ways to Create a Brand Name

Creating a great brand name is almost half the battle in establishing your company or your product. But getting there involves the kind of creative thinking that might be outside a small-business owner’s purview. If you’re having trouble, branding experts say the first step is to pinpoint your strengths. Why are you the best? And what do you deliver that’s unique? Then, consider the customers whom you’re targeting and what they value most, such as social responsibility, authenticity or customization. Then, think about how you can best express these principles effectively through words.

Here are the three best ways to come up with a brand name:

1. Take inspiration from everywhere. Write down the first few ideas that come to mind when you think about your business’ service, product and personality; try using symbols, metaphors and word variations, says Michelle Adelson, owner and creative director, of brand agency Copia Creative Inc., of Santa Monica, Calif.

That’s what Dan Kim, chief executive of Red Mango Inc., a frozen yogurt franchise in Dallas, did while trying to name the flavors of his frozen yogurt and iced tea drinks. He wanted names that would give customers “an emotional experience” and appeal to their sense of adventure. For a tangerine-and-mango yogurt, he combined the flavors with the word “pandemonium” to create Tangomonium. For iced tea drinks, he wanted customers to hear the “tea” sound when they order, so he named drinks Fanteasia (a wild berry hibiscus tea) and Mysteaque (vanilla black tea with hints of bourbon flavor). “We embrace having fun with the names,” Mr. Kim says.

Read the full post here:  http://online.wsj.com/article/SB125328266881923153.html?mod=dist_smartbrief