Accounting for Non-Accountants -
Accounting for Non-Accountants is a 20-hour
strictly online accounting course that requires no
textbook or live instructor. It is a self-paced accounting tutorial
that can be taken 24/7 conveniently in your own home, office, or
from any computer that has access to the Internet.
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A Sole Proprietorship is the easiest and least expensive
way to form a business. All you basically have to do is get a
local business license, a state sales tax permit, and go to work. States
differ slightly on requirements for licensing and permits, but there are
no special sole-proprietorship forms or anything you need to fill out
for the IRS to get the business underway.
Proprietorship: Small Business Start-Up Kit
provides everything necessary to set up a small business sole
proprietorship in all fifty states. Amazon.com
You & the Business are One
A business set up and
operated as a sole proprietorship does not exist apart from its owner.
Though you are wise to keep separate records for the business, the
bottom line profit or loss is yours and is reported to the IRS on your
individual tax return. The business does not file a separate return (it
is not its own entity).
Records to Keep
Accounting and recordkeeping for a sole proprietorship is
just like that of any business structure, just a little less
complicated. A separate bank account for the business is a good idea and
you should, at minimum, keep track of your business related receipts and
disbursements, maintain payroll records (if you have employees), and
keep a list of business assets.
The IRS doesn't care what system you use to account for
income and expenses, just that you do it and that the records are
available to them for auditing. You can use a paper-and-pencil method or
choose to use
accounting software which is widely available, easy to learn, and
often times more accurate than a manual system.
Savvy for Small Business: Year-Round Tax Strategies to Save You Money
covers recordkeeping with tax savings in mind. Amazon.com
Other Things to Note
You will be responsible for paying self-employment taxes
and you may be required to make
Estimated Tax payments.
Know How Made Easy
Business Startups Kit
You have what it takes to get your business off to a
great start with this convenient kit. It provides the
advice, information and customizable forms you need to
develop plans, obtain financing and make your business a