Attenion Entrepreneurs! Key Steps To Starting Up A Small Biz
Step 1 - Obtain an Employer Tax ID
All businesses, large and small, are required to pay federal and state taxes. In addition, local taxes must be paid depending on the state the business is in. A business owner who is just starting out needs to obtain employer tax identification numbers from the IRS and the respective state revenue agency that identifies the owner and the business. Since not every business is required to obtain a tax identification number, it is important to do your research to learn more about the requirements in your state for your specific type of business.To obtain your EIN, contact the U.S. Internal Revenue Service at 1-800-829-4933.
Step 2 - Decide on a Business Entity to Establish
When starting up a business, the next key step after obtaining a tax ID number is to decide what form of business entity to establish. A business identity determines how much regulatory paperwork that must be filed, personal liability regarding investments into the business, and taxes that must be paid to the government. The most common business structures include:* Sole Proprietorship
* Partnership
* Corporation
* S Corporation
* Limited Liability Company (LLC)
* Non-Profit
* CooperativeAfter you have decided what type of business entity you wish to establish, the next step is to register the business and file all necessary documents with your state government. If your business is a sole proprietorship, you do not need to register your business with the state.
Step 3 - Choose and Register the Business Name… read on.
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