{"id":9627,"date":"2020-12-16T09:20:41","date_gmt":"2020-12-16T07:20:41","guid":{"rendered":"https:\/\/www.dazzlepop.net\/site\/?p=9627"},"modified":"2020-12-16T09:20:45","modified_gmt":"2020-12-16T07:20:45","slug":"the-new-year-is-the-best-time-to-start-a-business","status":"publish","type":"post","link":"https:\/\/www.dazzlepop.net\/site\/the-new-year-is-the-best-time-to-start-a-business\/","title":{"rendered":"The New Year Is the Best Time to Start a Business"},"content":{"rendered":"<div style=\"text-align:center\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"235\" src=\"https:\/\/www.allbusiness.com\/asset\/2016\/06\/Start-300x235.jpg\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"The New Year Is the Best Time to Start a Business\" title=\"The New Year Is the Best Time to Start a Business\" \/><\/div>\n<h3 class=\"wp-block-heading\">3 Reasons Why the New Year Is the Best Time to Start a Business<\/h3>\n\n\n\n<p>Whether it\u2019s hitting the gym, rekindling a relationship, or starting a new business, the beginning of the year signifies a fresh start. If you\u2019ve been considering incorporating or forming an LLC, you may be wondering why so many&nbsp;<a href=\"https:\/\/www.allbusiness.com\/15-success-tips-for-first-time-entrepreneurs-102389-1.html\">entrepreneurs<\/a>&nbsp;choose January as the formal \u201cstart date\u201d of their new business. After all, we don\u2019t all possibly have the exact same New Year\u2019s resolution, do we?<\/p>\n\n\n\n<p>The reality is there are distinct advantages to <a href=\"https:\/\/www.dazzlepop.net\/site\/category\/startup\/\">starting a business<\/a> at the beginning of the year. Savvy entrepreneurs have goals just like the rest of us, but they time the filing of their legal entity paperwork to save on <a href=\"https:\/\/www.dazzlepop.net\/site\/category\/startup\/\">startup<\/a> costs and take advantage of tax breaks. They also know how to get started now, before the year\u2019s end, so they can hit the ground running in the new year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">1. Tax and bookkeeping benefits<\/h2>\n\n\n\n<p>Show me an entrepreneur who enjoys additional taxes and paperwork \u2026 I\u2019ll wait. January is the best time to form a new business for this exact reason\u2014there\u2019s less red tape!<\/p>\n\n\n\n<p>First, bookkeeping is much simpler. Rather than keep and close the books for a few weeks of a short year, many entrepreneurs like a clean January 1 start date.<\/p>\n\n\n\n<p>In general, businesses are required to file tax returns for any years they existed, regardless of how much revenue or profit they brought in during that time. In addition, owners are required to declare any profits and losses from their LLC, or any shareholder income from their corporation, on their personal income tax returns. This leaves many entrepreneurs with a choice: to start the business late in the year and file the business tax return right away, or to choose a January start date for their business entity and file their first tax return the following year.<\/p>\n\n\n\n<p>Many entrepreneurs have no practical reason to incur the additional taxes, professional fees, or overall complexity of filing a business tax return for a few short weeks of activity. As a result, they may elect to start their business in January and defer that headache until the following year. Additionally, entrepreneurs may be able to deduct additional\u00a0<a href=\"https:\/\/www.allbusiness.com\/65-questions-venture-capitalists-will-ask-startups-96828-1.html\">startup<\/a>\u00a0expenses, like home office space, state registration fees, and professional service fees, so it\u2019s important to seek guidance from an accountant or attorney on what is possible\u2014and when<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">2. Beating the rush at state agencies<\/h2>\n\n\n\n<p>By now, you may be thinking that starting your business on January 1 is a good idea. But wait, you say. Aren\u2019t state agencies closed on New Year\u2019s Day? How could I possibly secure that start date for my business? That\u2019s a great question.<\/p>\n\n\n\n<p>Also consider that thousands of people across the United States file business entity formation documents in the first few days and weeks of the new year. As a result, state corporation offices and their staff end up with a huge backlog of business filings each and every year. That means entrepreneurs face unusually long wait times for their businesses to be officially established. Those extra days\u2014or even weeks\u2014can lead to delayed profitability and immediate frustration.<\/p>\n\n\n\n<p>The secret lies with the company\u2019s formation document itself. Depending on the type of entity you form, and your state, you might find a question that looks something like this:<\/p>\n\n\n\n<figure class=\"wp-block-image\" id=\"attachment_135105\"><img decoding=\"async\" src=\"https:\/\/www.allbusiness.com\/asset\/2020\/12\/Image-1.png\" alt=\"The New Year Is the Best Time to Start a Business \" class=\"wp-image-135105\" \/><figcaption>The New Year Is the Best Time to Start a Business<br><em>Image source: Florida Department of State\u2019s articles of organization form for LLCs<\/em><\/figcaption><\/figure>\n\n\n\n<p>This example is from the Florida LLC articles of organization. You\u2019ll notice the Department of State gives the organizer a choice: whether their office should approve the LLC when they receive this document, or at the date specified by the organizer.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Read more: <a href=\"http:\/\/www.allbusiness.com\">www.allbusiness.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>3 Reasons Why the New Year Is the Best Time to Start a Business Whether it\u2019s hitting the gym, rekindling a relationship, or starting a new business, the beginning of the year signifies a fresh start. If you\u2019ve been considering incorporating or forming an LLC, you may be wondering why so many&nbsp;entrepreneurs&nbsp;choose January as the [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":9629,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_vp_format_video_url":"","_vp_image_focal_point":[],"footnotes":""},"categories":[29],"tags":[951,238,985,11],"class_list":["post-9627","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-startup","tag-allbusiness","tag-entrepreneur","tag-starting-a-business","tag-startup"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Dazzlepop | The New Year Is the Best Time to Start a Business<\/title>\n<meta name=\"description\" content=\"The New Year Is the Best Time to Start a Business Whether it\u2019s hitting the gym, rekindling a relationship, 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