General Information
Record Keeping for Small Business
As the owner of a business, you are required to keep records that enable you to prepare complete and accurate tax returns. You must also keep items such as canceled checks or paid bills to verify your records. The following example of a record-keeping system is for the owner of a small, unincorporated business (sole proprietorship). It is offered as a guide to assist you in establishing your own system.
The “S” Corporation is a particular type of corporation that exists for certain tax purposes. It is particular to the Internal Revenue Service and “S” corporation status is not relevant to state corporate laws. It enables a small corporation to be taxed on the federal level like a partnership yet retain some of the benefits of corporation status.