Corporations and taxes
June 29, 2010 8:14 AM Subscribe
A friend and I are starting up a company. The company will be domiciled in New York City, possibly incorporated elsewhere. We have attorneys who will give us legal advice about incorporation issues. We also have investors who will give us financial and accounting advice as needed, though I come from a finance and accounting background. What I don't know too much about, though, is the various taxes to which a corporation is subject. More detail inside.
I'm not talking about income taxes here, but rather, things like withholding tax, unemployment taxes, etc.
Is there a resource on the web for this information?
We will have an outside accounting firm, however, before we engage with them I need to have at least as basic knowledge of the various taxes (other than income taxes) that the company is responsible for.
Thanks.
I'm not talking about income taxes here, but rather, things like withholding tax, unemployment taxes, etc.
Is there a resource on the web for this information?
We will have an outside accounting firm, however, before we engage with them I need to have at least as basic knowledge of the various taxes (other than income taxes) that the company is responsible for.
Thanks.
Don't worry, your accountant will know all this information.
You may think that since you have an accounting background, you can handle all the bookkeeping yourself and won't need an accountant. But as a co-founder of the company, your time will be better spent helping get the company off the ground. The business will likely fail (and you will burn out) if you try to do two jobs at once. So hire an accountant.
posted by kindall at 8:29 AM on June 29, 2010
You may think that since you have an accounting background, you can handle all the bookkeeping yourself and won't need an accountant. But as a co-founder of the company, your time will be better spent helping get the company off the ground. The business will likely fail (and you will burn out) if you try to do two jobs at once. So hire an accountant.
posted by kindall at 8:29 AM on June 29, 2010
There is a saying about the lawyer who has himself as a client. I have a finance and accounting background and I would not do the accounting myself. Hire someone experienced. (Also your time is more valuable then the money it will cost).
posted by An algorithmic dog at 9:02 AM on June 29, 2010
posted by An algorithmic dog at 9:02 AM on June 29, 2010
The OP clearly stated that he will hire an outside accounting firm - I think he just wants to get an idea of the various taxes to help him with planning. An accountant's time is expensive, so it makes sense to do preliminary planning on your own before consulting an accountant.
posted by barney_sap at 9:21 AM on June 29, 2010
posted by barney_sap at 9:21 AM on June 29, 2010
Response by poster: Barney_sap is correct: I'm not intending to do bookkeeping or administrative tasks. But business planning requires a familiarity with the obligations to which the company is subject.
posted by dfriedman at 9:36 AM on June 29, 2010
posted by dfriedman at 9:36 AM on June 29, 2010
If having the numbers right is so important that you can't make a business plan without it, why would you try to figure them out on your own without consulting a tax accountant or attorney?
Hire a professional and let them do their job.
posted by toomuchpete at 11:12 AM on June 29, 2010
Hire a professional and let them do their job.
posted by toomuchpete at 11:12 AM on June 29, 2010
This thread is closed to new comments.
Information about federal taxes (income, employment, and excise) here.
General information about NY state specific business taxes here.
Hope this helps.
posted by GnomeChompsky at 8:21 AM on June 29, 2010