Thanks to Smith & Smith CPA for this insightful blog post on the 5 Things You MUST Know When Starting a Business!
Starting a Business
So, do you have an idea that you just can’t wait to share with the world? Have you developed a business service that you KNOW is gonna make you millions!!?! You have a product in mind that will fly off the shelves? Sounds like you are READY to start a business! BUT WAIT!!!!!!! Are you really ready???? Check out these TOP 5 Things you MUST Know When Starting a Business…trust me, they will save you a lot of time & worry in the long run! And sure, some of them will seem like“simple-no-brainer-things-to-do”, but you would be surprised at how many people DON’T do these things when they start a business! And if you are going to have employees, make sure you take to heart the section about federal and state forms that need to be completed to get your business up and going!
5 Things You MUST Know About When Starting a Business
1) You need to secure an Employer Identification Number, also known as a Federal Tax Identification Number. Do this FIRST as many of the other forms will require it. They are issued by the IRS to employers, sole proprietors, corporations, partnership, nonprofits, trusts, estates, certain individuals and other business entities for tax filing & reporting purposes. You can do this by going online through the IRS website or by phone.
2) After you get the EIN, you need to complete forms to establish an account with the State for payroll tax withholding, sales tax (if necessary) and Unemployment Insurance Registration.
3) Get your payroll record keeping in order! Payroll record keeping & reporting can be a very time consuming process, please make effort to make sure it is done correctly from the beginning! This will save you a lot of headache in the long-run. Consider hiring a local payroll agency to help you if you are uncomfortable doing this yourself. Call Smith & Smith, CPA for some local payroll personal recommendations.
4) The W-4 Form. As a business owner, you need to get your employees to fill out the W-4 Form. This is used to calculate their federal income tax withholding. To complete this form, make sure you have their current address and their social security number….two crucial pieces of information!
5) The I-9 Form. This is to be completed by YOU, the employer. This verifies that the employees are legally permitted to work in the US.
BONUS TIPS! Who doesn’t love a BONUS TIP!?! Here are a FEW Bonus Tips for Starting a Business
Bonus Tip 1) Set-up a separate business bank account!
Bonus Tip 2) Do NOT co-mingle your business funds with your person funds! Use a separate charge card (if you need one) to keep purchases from co-mingling.
Bonus Tip 3) Create a NETWORK of trusted professionals. Hire a CPA! Connect with an attorney, get to know your banker, find a Financial Advisor, etc. It’s a good idea to KNOW these people before you NEED them! And trust me, there will come a time when you will NEED them! Give us a call at Smith & Smith, CPA and we’ll connect you!
Bonus Tip 4) Decide what avenue of social media is best for you and get it started. It is a time & age when having some kind of social media attached to your business is A MUST! From a website that is updated on a regular basis, to a Business Facebook page, a blog, Instagram account, SOMETHING! Social media is time consuming but it needs to be done! If you don’t have the time & skills to do it yourself, then HIRE it out! There are TONS of companies who can help you mange your social media presence.
Don’t let Starting a Business be scary!
All of this helpful material for Starting a Business can be found in the June newsletter, click here to view & sign-up for the monthly newsletter! Helping businesses grow, expand and become successful is what we do here at Smith & Smith, CPA. Give us a call today and we are happy to help!
Our CPA firm in Cary is growing and we are currently welcoming new clients. Please check out our website for more information http://www.smithandsmithcpa.com We are never too busy to help a small business owner with their accounting/tax needs. We welcome referrals!