Post by Misty Henry (Admin) on Oct 28, 2017 12:04:57 GMT -6
Quick Start Business Registration Guide
Once you have done the first bullet, the rest can be done in any order. You just must complete all steps before selling or ASAP if you are already selling.
Once you have done the first bullet, the rest can be done in any order. You just must complete all steps before selling or ASAP if you are already selling.
- Local: Check with your local government office for local business license and zoning regulations. This can be done at your city hall. If you live outside of a city limit then you can skip this part.
- County/State (SP): If you are using a business name other than your own name you are Doing Business As for a sole prop. Some states call it an Assumed Business Name or Fictitious Business Name. This is usually registered at the county level at the courthouse. Some counties will have the paperwork online, but the majority will have you go in. Some also require a newspaper run. A few states handle this registration at the state level through the Secretary of State website. Even less states do not require a registration at this level at all. Fees will vary. A good resource to check on where your state stands is www.nolo.com/legal-encyclopedia/50-state-guide-establishing-sole-proprietorship.html
- State (LLC): All LLC registrations are done through your state Secretary of State. Please check with your state for the guidelines and registration process. Fees will vary.
- Sales Tax: This is always at the state level and usually registered and returns filed through the state Department of Revenue Site. YOU ARE REQUIRED TO REGISTER BEFORE CHARGING THIS TAX. The state will assign you a filing period based on the information you give when registering. The state will not remind you of your filing requirements. This can also be called a sales tax license, Tax ID (very misleading term, but used a lot), or resale license.
- Federal FEIN: This is a Federal number that is required if you have employees. If you do not have employees, it is highly recommended as it will protect your social security number in the event you have to fill out a W9 or need to issue a 1099MISC. These are FREE and can be applied for online at: sa.www4.irs.gov/modiein/individual/index.jsp
- State Business Property Tax: This is not something you are required to register for, but can be quite a surprise when that paper shows up in the mail. Some states have an additional business tax. This is usually but not limited to states that have no income taxes. It can be governed at the local, county, or state level. The base name is the Business Personal Property Tax. DO NOT confuse this with your Real Estate Taxes! This is usually on all assets of the business. From the computer you are reading this on, the chair you are sitting on, to the expensive embroidery machine that is working away beside you. ALL business assets, even if they are not listed on the Schedule C. Some states also include inventory. This is another thing to keep in mind when accumulating inventory items. The rates charged will vary greatly between states, as will due dates for these returns.