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