You are waiting too long if you just think about taxes until your business starts earning revenue.
You need to consider taxes from the outset of your business in order to avoid trouble along the way and to take advantage of tax deductions for paying promptly without any delays.
Avoid the common mistakes startups fall in terms of paying taxes. Here are some of them:
Misunderstanding your tax obligations
Even if your company is just starting, once you start earning revenue, there is payroll, federal, licensing fees and taxes or more than you are already obliged to pay. It is best to learn all these things even before you start earning your revenue.
Wrong legal entity
Before choosing your company’s legal entity, you need to learn the disadvantages and advantages of choosing and using partnership, sole proprietor, or other forms of a corporation for your startup. Each on of these entities varies in terms of tax obligation. We know that the right choice should always be considered; however, in this case, it should be the best entity choice for your business.