Government Check List for Starting a Business
The government has requirements for business startups. Not all businesses will need to follow this though. There are certain businesses that can be exempt from the steps we mention. For example, if you are a freelancer, as long as you fill out your taxes as self employed and mention what you do you won’t have to come up with a business name. It is only after you reach $30,000 in most states that you will have to complete the following steps because you will have reached the minimum amount for a small business to be licensed.
You will have to apply for an employer identification number or EIN. Right on the IRS site it tells you to apply for this if applicable, which means you may find your state does not require it depending on the business you have. You should refer to your state’s website for more information about the EIN.
You’ll have to select a business structure to use. Will you be a sole proprietor, partnership, corporation, LLC or another type of company? The company type you start will determine some of the tax forms you will have to fill out.
Businesses have the luxury of choosing a tax year. This means you can go by calendar year or fiscal year. Both of these are a 12 month period. Basically you just have to make certain you file taxes for the business based on either of the tax year types.
You will have to determine the accounting method you will use for the business. It is a good idea to set up separate bank accounts, credit cards, and have an accountant on hand. You may do the books throughout the year, but you will want a professional handling the tax forms. There are plenty of people out there and with a little merchant one funding you can have your taxes prepared to find savings for you.
When you have employees you’ll need to have them fill out the appropriate forms such as I-9 or W-4. Always pay your taxes to keep your business from being looked at by the IRS.
