Starting a Business

Assume you are an individual about to start a small business as a sole proprietorship. What type of business will it be? Addresses the following questions in essay format:

• Describe the business you would start

• What kinds of business income must you report on your tax return? https://www.irs.gov/pub/irs-pdf/p334.pdf (Hint: Review Publication 334, Chapter 5.)

• What kinds of business expenses can you deduct on your tax return? Consider general categories and actual expenses. https://www.irs.gov/pub/irs-pdf/p334.pdf (Hint: Review Publication 334, Chapter 8)

• Review the sample recordkeeping system of Mr. Henry Brown in Publication 583, beginning on page 16 https://www.irs.gov/pub/irs-pdf/p583.pdf

• Is the type of system presented suitable to your specific business? Why or why not? Elaborate your response for each of the seven types of business records presented in the publication's example.