Selecting S-Corporation status for tax purposes

S-Corporation Status
Name:
Institution:
Date:
Introduction
Starting a business is agreeably a challenging task for most individuals, regardless of the size or nature of the business. It is therefore important that entrepreneurs do the necessary groundwork to ensure that they are taking the right direction. There are a number of steps that can be followed when one is looking at the suitability of the business undertaking that is in mind. These steps have been outlined here about their suitability while beginning a business.
Determine the facts: This process is an important aspect of the business in that it helps the entrepreneur to understand the basics and overall demand s of the business. Determining the facts involves the process of outlining all the major issues that will affect the business especially at the beginning. At this stage, issues such as capita need and its availability and business viability must be put squarely on the table. Quite often, people tend to hide under the comfort of just make the beginning steps and fail to see the full picture of the business/( Reinhart and Rogoff, 2008). This step is important because it is like doing a through should searching.
Identify the issues: In this case, “issues” include all matters that will affect the business now and in the future (McCluskey and Franzsen, 2005). It will also include understanding the tax laws in details. This is a demanding step in that it may be time consuming as well as rigorous s but very important for the growth of the business.
Locating Relevant Authorities: In relation to tax, they may include finding out the relevant payable taxes and the authorities and how the relevant taxes must be remitted and the duration. The entrepreneur will need to do this in order to remain within the legal standard...