| In addition to a business license, required | | | | law, but can prevent you from owing taxes at |
| by almost all localities in the United | | | | the end of the year. If you are not sure |
| States, a new business must file many tax | | | | whether or not your business should make |
| forms at the start of the business. If you | | | | quarterly tax payments, you should contact a |
| are selling a product, your business will | | | | professional accountant to answer these and |
| need to file for retail sales tax licenses. | | | | any other questions. If your business does |
| Depending on the location of your business, | | | | need to make quarterly tax payments, you will |
| you may need to file for a retail sales tax | | | | want to obtain the necessary forms for your |
| license from your city, county, and/or state. | | | | business taxes from the IRS prior to starting |
| If you are selling a service, and your state | | | | your business. Become familiar with the forms |
| or city requires sales tax for services, your | | | | and the processes, and organize yourself so |
| business will also need these forms. | | | | that your business runs smoothly after start |
| | | | up. |
| Another thing your business will need to file | | | | |
| for is a federal tax identification number. | | | | There are many other considerations when |
| This number is used on all tax documents for | | | | starting a business. You need to make sure |
| your business. It may not be required if you | | | | that your business follows all business laws |
| will be the only person working for your | | | | applicable to your type of business. Some |
| business. However, if you plan to use | | | | industries and businesses require additional |
| subcontractors or employees, you will need a | | | | licensing. Other industries require |
| federal tax identification number in order to | | | | additional insurance to be purchased. |
| pay your contractors or employees. This is | | | | Workman's Compensation insurance is required |
| required by the federal government so that | | | | by federal and most state laws if you have |
| wages paid can be tracked by the IRS for | | | | any employees. Some states require a business |
| purposes of collecting income taxes. | | | | to carry liability insurance to cut down on |
| | | | law suits, while in other states this type of |
| Some cities require that individuals and | | | | business insurance is optional. |
| businesses pay a local income tax in addition | | | | |
| to state and federal income taxes. You should | | | | Make sure you know the legal requirements for |
| find out if your business will need to pay | | | | starting a business before you actual begin |
| this type of tax, and what the filing | | | | doing business. This way, you will be |
| requirements are for your location. Many | | | | compliant with all local, state, and federal |
| businesses are required by law to file | | | | business laws, thereby cutting down on your |
| quarterly federal income taxes. If you are a | | | | risk of running a business as well as cutting |
| smaller or home based business, these | | | | out the possibility that your business could |
| quarterly tax payments are not necessary by | | | | be shut down before it has ever truly begun. |