Starting a New Business?

Things You Must Know…

Starting a new business is a very exciting and busy time. There is so much to be done and so little time to do everything and to make all the necessary decisions, let alone stay current with the paperwork. That’s where we can help. There are a variety of federal and state forms and applications that will need to be completed to get your business started.

Federal ID Number
Securing a federal ID number needs to be accomplished first since many other forms require it. After form SS-4 is complete the IRS can be called to get your Federal ID#. After the completed form is mailed to the IRS, you will receive federal tax coupons which are needed for payroll tax deposits.

State Withholding, Unemployment, and Sales Tax
You will then need to fill out forms to establish your account with the State for payroll tax withholding, Unemployment Insurance Registration, and sales tax collections (if applicable).

Payroll Record Keeping
Payroll reporting and record keeping can be very time consuming and costly, especially if not handled correctly. Let our expertise handle that part of your business so you can concentrate on running your business. Also keep in mind, almost all employers will be required to transmit their federal payroll tax deposits electronically. You should keep personnel files for each employee. Included should be the employee’s employment application as well as the following:

W-4 Form – completed by the employee and used to calculate their federal income tax withholding. Also includes necessary information such as address and social security number.

I-9 Form – required to be completed by you, the employer, to verify employees have permission to work in the U.S.

The 5 most important descisions to make when starting your business

Have a Business Plan

  • Business plans are used for financing.
  • They provide a yardstick against which future performance will be measured.
  • They provide a framework for decision making and coordination of business.
  • They define the business culture that will be communicated to employees,
  • Customers, etc.

Choose the Entity that is Right for You

  • Sole Proprietorship
  • Partnership
  • Corporation
  • Limited Liability Company (LLC)

Set up a Good Recordkeeping System

  • Set up a business bank account.
  • Use a good accounting software program or recordkeeping system.
  • Keep all receipts relative to the business.
  • Stay away from cash transactions.
  • Know the records retention requirements.

Know Your Filing Requirements and Your Tax Responsibilities

  • What forms are required and when are they due?
  • Set up a calendar system to help monitor the due dates.
  • Learn what taxes are due and how you calculate the amount to pay.
  • Learn the rules for taking money from your business account.

Engage a Good Banker, Accountant & Attorney

  • A banker will help you with loans, financing, bank accounts and recordkeeping.
  • An accountant will help you with your accounting, taxes and filing requirements.
  • An attorney will help you with all your legal issues and help protect your assets.