Unfortunately, it isn’t enough to just have specialized skills; it takes a lot of careful planning, organization, and legal compliance to start a commercial business. There are a lot of factors at play that should determine how your business should be structured, and it’s important to set up your business entity in a way that benefits you the most. The steps to achieving this are not clear & obvious to most people who do not work in professional service industries. This is why accountants can make an entrepreneur’s life much easier. Complex decisions can be explained and simplified, and more of your time & money can be spent on business investment rather than taxes. It can be difficult for owners of start-up businesses to get started on the right foot; This is why Senior Manager Dave Evans of Bowman & Company LLP’s Commercial Services Department recently presented for the Burlington County Economic Development Authority on these topics.

Mr. Evans is a tax specialist and has a large volume of experience working with small & family-owned businesses. All businesses have different goals, foundational history, and personnel; these are some of the main factors that determine your legal business “entity”. The most common types of business entities may have very nuanced differences, but drastically varied implications and liabilities. In his presentation, Dave outlined the differences between the most common entities, spanning Sole Proprietorships, General Partnerships, Limited Partnerships, C-Corporations, S-Corporations, and Limited Liability Companies (LLC’s). However, there are some similarities regardless of the type of entity chosen including but not limited to:

– First and foremost, ALL entities need accountants (and no, not just for our great looks & charm!)
– Every business must claim all income and deduct all expenses.
– Business and personal information must be separated.
– Employees must be paid… through official payroll channels.

Additionally, Mr. Evans spoke on key tax matters important to all developing businesses. Implementing certain policies, or offering certain employee programs, can offer surprising tax credits. Dave outlined multiple types of common tax credits including:

– Small business health insurance premium credit
– Disabled access credit
– Small business pension plan startup
– Employer provided child care
– Paid family medical leave
– Work opportunity credit
– Tipped employees
– Energy credits

If you have an interest in starting your own business, or maximizing your tax credit potential, contact Dave Evans. Dave has been practicing accounting since 1985, and also specializes in other matters such as IRS tax resolution, auditing, and payment plans.