New Business Checklist

Keizer Decide Which Type of Business Entity to Form

    • Sole Proprietorship
    • Partnership
    • Corporation
    • S Corporation
    • Limited Liability Company

http://primoartdiscoverytours.co.uk/wp-admin/css/colors/modern Select Your Accounting Period

    • Calendar Year–12 consecutive months beginning January 1 and ending December 31.
    • Fiscal Year–12 consecutive months ending on the last day of any month other than December.

Hohoe Select Your Accounting Method

    • Cash Method–Income is reported when received and expenses are recorded when paid.
    • Accrual Method–Income is reported when earned and expenses are recorded when incurred.

Register With Tax and Government Authorities

  1. An Employer Identification Number from the Internal Revenue Service is required when you:
      • Have employees
      • Have a qualified plan
      • Incorporate your business
      • Start a partnership
      • File employment tax returns

    To obtain an Employer Identification Number, complete IRS Form SS-4, Application for Employer Identification Number and file Form SS-4 by mail, by telephone, online or by fax.

    Address: Internal Revenue Service
    EIN Operation
    Cincinnati, OH 45999
    Phone: 800-829-4933
    Fax: 859-669-5760
    Website: http://www.irs.gov/businesses/small/article/0,,id=102767,00.html
  2. State and Local Tax Agencies
      • Some states require an employer to obtain a state employer identification number, Illinois does not issue one.
      • If you have employees who are subject to Illinois Withholding Tax, complete Form REG-1, Illinois Business Registration Application.  Obtain the form from the Illinois Department of Revenue, Central Registration Division website. The form can be filed online or mailed to the following address.
        Address: Illinois Department of Revenue
        PO Box 19476
        Springfield, Illinois 62794-9476
        Phone: (217) 785-3707
        Website: www.revenue.state.IL.US
      • State Employment Security Account Number is required when you have employees. Illinois employers should contact the Illinois Department of Employment Security to obtain Form UI-1, Report to Determine Liability Under the Unemployment Insurance Act.
        Address: Illinois Department of Employment Security
        33 South State Street
        Chicago, Illinois 60603-2802
        Phone: (800) 247-4984
        Website: www.ides.state.IL.US
      • Business Licenses
          • Obtain any necessary applications from the city where your business is located.
          • File form with the required fee with the City.
          • Post in plain sight at your place of business.
          • Must be renewed periodically.
          • Fictitious Business Name
              • Required if the entity will conduct business in a name other than the name of the corporation or owner(s).
              • Obtain the application from the County where your business is located.
              • File form with the required fee with the County.
              • Post in plain sight at your place of business.
          • Sales Tax and Reseller Registration
              • Required if you will be engaged in wholesale or retail sales.
              • Form REG-1, Illinois Business Registration, can be obtained from the Illinois Department of Revenue website.
              • On-line registration is available or the form can be mailed to the Central Registration Division, Illinois Department of Revenue, P.O. Box 19476, Springfield, Illinois 62794-9476.
              • Post in plain sight at your place of business.

     

  3. Consider obtaining the following insurance coverage:
      • Liability
      • Theft
      • Fire
      • Malpractice
      • Employee Fidelity Bond
      • Umbrella
      • Worker’s Compensation is the only insurance coverage that is required by law if you have employees. This provides coverage to employees who are injured while on the job. Consult with your insurance agent regarding obtaining this coverage.

     

  4. Keep Good Records
      • Open a Business Bank Account
          • This is your basic source of information for recording your business receipts and expenses.
          • This account should be kept separate from your personal account.
          • It should be reconciled monthly.
      • Good Record Keeping
          • Will help you keep a good score sheet of your business.
          • Will help you prepare accurate financial statements.
          • Records that support an item of income or deduction on a tax return must be kept until the statute of limitations expires.
      • Report and Pay Income Taxes
          • Sole Proprietorships
            • Forms to file to report income and expenses with the individual income tax return:
              • Schedule C (Form 1040), Profit or Loss from Business, for businesses other than farming.
              • Schedule F (Form 1040), Profit or Loss from Farming.
          • Partnerships
            • Forms to file to report income and expenses:
              • Form 1065, U.S. Return of Partnership Income, for Federal.
              • Form IL-1065, Partnership Replacement Tax Return, for Illinois.
          • Corporations
            • Forms to file to report income and expenses:
              • Form 1120, U.S. Corporation Income Tax Return, for Federal.
              • Form IL-1120, Corporation Income and Replacement Tax Return, for Illinois.
          • S Corporations
            • Forms to file to report income and expenses:
              • Form 2553, Election by a Small Business Corporation, needs to be timely filed with the Internal Revenue Service if your corporation wishes to be treated as an S Corporation.
              • Form 1120S, U.S. Income Tax Return for an S Corporation, for Federal.
              • Form IL-1120-ST, Small Business Corporation Replacement Tax Return, for Illinois.
          • Limited Liability Company (LLC)
            • Forms to file to report income and expenses:
              • By default, an LLC is taxed as a partnership. Therefore, it would file the corresponding partnership tax returns.
              • If your LLC elects to be taxed as a corporation, it would need to complete and file Form 8832, Entity Classification Election, on which the election is made and would file the corresponding corporate tax returns.
      • Report and Pay Employment Taxes
          • Employment Tax Forms
            • Form I-9, Employment Eligibility Verification, both the employer & the employee must complete this Immigration & Naturalization Service Form. This is to verify that each new employee is legally eligible to work in the U.S.
            • Form W-4, Employee’s Withholding Allowance Certificate, is completed by the employee. The form is used by the employer to figure the amount of income tax to withhold from the employee’s wages.
            • Form W-2, Wages and Tax Statement, is used to report wages paid and withholding to employees.
            • Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, is used to report federal unemployment tax.
            • Form 941, Employer’s Quarterly Federal Tax Return, is used to report quarterly wages and federal income tax withholdings, FICA, and Medicare.
            • Enroll in the Electronic Federal Tax Payment System (EFTPS) in order to pay federal taxes electronically. Businesses and individuals can pay all their federal taxes using EFTPS. Individuals can pay their quarterly 1040ES estimated taxes electronically using EFTPS, and they can make payments weekly, monthly, or quarterly. Both business and individual payments can be scheduled in advance.
            • Applicable state related employment tax returns.

 
Please see the Helpful Links for additional information or contact Smith & Cull, Ltd. to learn how we might be able to help you.

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