Federal
Register with the Internal Revenue Service.
The IRS has application forms online for federal employer ID numbers (EIN) and federal taxes. If you plan to have employees, you will need to get an EIN from the IRS by submitting form SS-4.You will be required to make regular payments to the IRS for social security and employee withholding tax, including federal unemployment taxes (FUTA). Prepare by reading page 15 in this guide. As a sole proprietor, if you expect to owe at least $1,000 in personal income tax to the IRS for the upcoming tax year you must make estimated quarterly payments using form IO4OES. Again, read page 15 in this guide.The IRS conducts local workshops and courses geared to small businesses, usually free of charge.
802-859-9308
www.irs.ustreas.gov
Federal Forms you Might Need
File form SS-4 and obtain an Employer Identification Number (EIN).
Each employee must fill out a W-4, the employee withholding form and an 1-9 Employment Eligibility Verification form.
For each pay period (weekly, bi-monthly, monthly, etc.) you need to calculate and deduct employees’ state and federal income tax, social security, and medicare amounts. 5-6 weeks after you file for an EIN, the IRS will send you a coupon book with forms for making these payments. Each quarter you’ll file a form 941 to report your payments.
If using subcontractors, you may need to file 1099s.
You’ll also be subject to federal unemployment tax on form 940.
Some businesses, such as those with employees who receive tips, are required to file additional information. Check with your tax accountant or visit www.irs.gov.
Shortly after the end of the calender year, you’ll file Wage and Tax Statement (W-2) for each employee and a Transmittal of Wage and Tax Statement (W-3 form).You’ll also file form 945, the Annual Return of Withheld Federal Income Tax.
If you are self-employed (or a partnership) you must pay the self-employment tax. Use schedule SE with your annual 1040 tax return. See www.irs.gov for information.
Check with OSHA (Occupational Safety & Health) for additional regulations that may apply to your company at www.irs.gov.
USDA Rural Development
USDA Rural Development is committed to helping improve the economy and quality of life in rural America. Their financial programs support such essential public facilities and services as water and sewer systems, housing, health clinics, emergency service facilities and electric and telephone service. They promote economic development by supporting loans to businesses through banks, credit unions and community-managed lending pools. They offer technical assistance and information to help agricultural producers and cooperatives get started and improve the effectiveness of their operations. They provide technical assistance to help communities undertake community empowerment programs.
(802)828-6000