1. New Business Start Up Highlights
Starting and Operating a New Business
Presented By: Leonard Steinberg, EA, CMC
Steinberg Enterprises, LLC

2. New Business Start Up Highlights
Business or Hobby
Profit incentive
Entity Type
Sole Proprietorship – Schedule C
Limited Liability Company – Schedule C
Partnership – IRS Form 1065
S-Corp – IRS Form 1120S

3. New Business Start Up Highlights
Cash Basis vs. Accrual Basis
Most are on Cash Basis
Concept of Co-Mingling
Personal versus Business
Separate Bank Account
Can be linked to personal account
Separate Credit Card(s)

4. New Business Startup Highlights
Stationery
Business Cards
Brochures
Newsletters
Seminars

5. New Business Startup Highlights
Income:
1099-MISC forms
Other forms of business income
Expenses:
Review the handout
Meals – 50% Federal; 100% in New Jersey
Entertainment, no longer federally deductible- state no change.

6. New Business Start Up Highlights
Home Office Deduction:
Review Handout – IRS Form 8829
NOT A RED FLAG – MISCONCEPTION!!
Real Estate Taxes – no cap of $10,000
Home Equity Loan –
Equity vs. Acquisition
Depreciation – 27.5 years
Recapture on Sale

7. New Business Start Up Highlights
Record Keeping:
QuickBooks
Quicken
Spreadsheets
Receipts - $75 or more
Bank Statements
Credit Card Statements
Keep at least 4 years

8. New Business Start Up Highlights
Travel:
Auto – mileage log - handout
Buy vs. Lease – Percentage of Use
Mileage vs. actual costs
Need receipts for gas, insurance, maintenance, etc.
Out of town travel

9. New Business Startup Highlights
Tax Filings
Estimated Payments – Federal and State
April 15th, June 15th, September 15th, January 15th
Payment methods
IRS Direct
EFTPS
Vouchers – Federal and State
New Jersey Webfile
How Much to Pay
90% rule
100% rule
110% rule

10. New Business Startup Highlights
Receiving IRS and/or State Correspondence
Don’t Panic
Read the notice carefully!!
Contact your tax advisor immediately
Respond to all correspondence quickly
Do NOT represent yourself
Penalties may be abated; Interest is statutory