Starting one’s own business is both exciting and alarming, as there are many legal and financial pitfalls that new business owners may not see as they venture into their dream.
Completing and submitting tax returns is often considered one of the more stressful activities, as there are so many regulations that govern taxes. This is particularly true if one is starting a business in the USA.
Unlike many countries that only follow the generally accepted accounting principles (GAAP), as the method of calculating taxes owed, in the USA there are two sets of principles that are used when it comes to accounting. The first is GAAP and the second is IRS tax accounting.
Under GAAP, companies must follow a common set of accounting principles, standards, and procedures when they compile their financial statements by accounting for any and all financial transactions. The Internal Revenue Service (IRS) developed a tax accounting system to levy taxes against net earnings or taxable income. Taxable income differs from revenue as defined by GAAP.
The IRS regulates all associated tax laws and requires the use of specific documents and forms to properly submit the required tax information and defines the tax accounting requirements in Internal Revenue Code Title 26.
Many small and medium sized enterprises (SMEs) use the tax accounting system over GAAP because it is easier to manage but there are still many areas that would benefit from using a professional tax accounting service to ensure complete compliance, as business taxes are more complicated than personal taxes.
At Grumble, we provide a personal approach to helping you set up your business the smart way, keeping it legal and compliant by leveraging our knowledge and global experience.
We offer tax accounting services that remove the annual stress of tax returns and can offer these services to any company that does business within the US, even those with foreign ownership.
We are part of a family of companies registered and licensed across the globe working together towards one common goal – to provide transparent, trustworthy and personalised financial and legal services.
We enable our customers to do global business in the new economy on a basis of earned trust, where decisions are based on choice and behaviour. Our current territories/footprint stretches across the US, United Kingdom, Estonia, and The Netherlands.