Before Starting a Business : How to Select Initial Entity Form for Your Entrepreneurial Skills, Capital-on-the-Line, and Tax Accounting Psyche

Designed to help entrepreneurs navigate the realities of pre-business setup, this resource fully answers common questions such as How should initial capital funds be handled? What is the best way to categorize such money? What should be done with money for employees as withholdings and borrowed money? and How should investment funds be properly reported? Particular attention is paid to definitional terms, the nature of start-up costs, the various types of businesses and their advantages and disadvantages, the cost of goods sold, the amortization and depreciation rules, the preparation for tax audits, and the compensation of owners. Also included are the nine factors that the IRS weighs to determine if a business has a profit motive and explanations on the most common business-startup tax forms.

Holmes F. Crouch is an IRS-licensed tax professional and the author of Being Self-Employed, Decisions When Retiring, Simplifying Your Estate, and Your Trustee Duties. He lives in Saratoga, California.