Just starting your corporation? Congratulations! The first official step, of course, is filing your Articles of Incorporation with your Secretary of State, officially incorporating your business.
But just because the ink on your Articles is dry doesn’t mean you’re ready to throw your doors open and forget about the next steps (and yes, there are next steps). Let’s take a look at a few of these requirements so you can operate your business with confidence!
Get your State Tax ID.
In order to pay your state taxes, you’ll need a state tax ID number. Contact your Secretary of State’s tax office or check their website for information on how to register.
Understand your Sales Tax Requirements.
Each state has different sales tax requirements. And even if you’re selling things online and not in a physical storefront, it’s your responsibility to understand whether you’re responsible for sales tax in the states you sell your supplies in.
Get your EIN.
If you haven’t already done this, it’s time to send in Form SS-4 and obtain your EIN from the IRS.
Unless you’re a federally-exempted nonprofit organization, you have to pay federal taxes. In order to do this, your business must apply for and will be assigned a unique number to use when corresponding with the IRS.
File a DBA.
Either now or sometime down the line, your new business might plan on opening another branch or location—or even another type of business in the same location—and market it under a different business name. (For example, Sarah’s Family Restaurant, Inc. might open a bakery next door called Sarah’s Baked Goods, and if the bakery will operate on its own and be known as a name other than the corporate name, it should register as a DBA so that it can have a bank account opened under that new name.)
DBA filing is, confusingly, known by a variety of different terms: Assumed Name, Fictitious Name, Trade Name, DBA—the list goes on. And depending on the state, you could be filing with the state, the county, or even the city clerk.
Send in your S-Corporation Election Form.
If you’re an S-corporation, the Articles of Incorporation in most states don’t reflect that. Instead, you’ll need to elect to be taxed as an S-corporation, which means sending in IRS Form 2553. (Hint: get your EIN first, because Form 2553 asks for it!)
Understand your Business License and Permit Requirements.
Depending on your state, county, and city rules and regulations, you may be required to hold a busines license or permit—or several of them—in each of those jurisdictions.
[Click&Inc can help you understand your business license and permit requirements. See how we can help!]