Are you considering starting your own business? If you are, then you probably already know how difficult it can be to get clear answers about properly setting-up a new business. Use the following information from Quality Accounting Solutions to help you maneuver through some important steps to legally setting-up your business:
- Decide on your business entity structure: corporation, a partnership, a sole proprietorship or a non-profit organization.
- Obtain incorporation papers from the Secretary of State. If your business is already incorporated in another state, contact the Secretary of State to get the proper application to do business in the new state.
- Apply for a Federal Employer Identification Number (EIN) by filling out the Form SS-4. You may also call the local IRS TELE-TIN hotline service, or visit the IRS’s website.
- Contact the state’s Department of Taxation/Revenue to request the proper paperwork for registration, and to receive instructions on withholding and paying state income taxes, sales tax, excise tax, etc. Complete REG-1
- Apply for a State Sales Tax Number (IBT) with the Department of Revenue if you plan to sell a taxable product or service.
- Contact the Workers' Compensation Commission to determine what’s required for compliance with the Workers' Compensation Act (this is not necessary for a sole proprietorship without employees).
- Contact your state’s Department of Labor or Employment for unemployment insurance registration materials. Fill out UI-1. Purchase mandatory posters to display.
- Contact the local municipal offices (city, county, etc.) to find out if there are any local registration or license requirements. Different entities have different registration requirements.
- Contact the Bureau of Labor Standards office to find out what is necessary for compliance with the Occupational Safety and Health Act (OSHA).
- Check with IL Department of Financial and Professional Regulation to see if your business type must be registered
- If you plan to operate your business from your home, check with the local code enforcement office to ensure compliance with all local requirements.
Join us next time as we delve into your business entity options.