Schultz, Wood, and Rapp P.C. is your expert accounting firm in Springfield Missouri. We have years of experience helping businesses large and small throughout all stages of their business cycle. Starting a business can be an exciting, large task to take on, but through this guide, you can break this large feat into smaller attainable actions. Read on for a few things you should know and steps to take before starting a business in Missouri.
Create a Business Entity
First, you need to identify what business structure you will use in your business. Common types of business entities are a sole proprietor, partnership and corporation. The type of business you choose will determine which tax forms you file with the Secretary of State, such as articles of incorporation, certificate of limited partnership, articles of organization, etc.
Register in Missouri
If applicable, you should register your business for required state taxes in Missouri. You can find more information with the Missouri Department of Revenue.
You also will need to register with the Missouri Division of Employment Security for unemployment tax purposes.
Generally, the types of tax your business pays depends on the type of business structure and should be further researched once you have decided on what entity your business takes.
Register for an Employer Identification Number (EIN)
Apply for an EIN, or Employer Identification Number, online through the IRS website or by telephone. There is no cost to apply and is used for tax filing and reporting purposes.
Obtain Workers Compensation Insurance & Employee Healthcare
Check to see if you are required to carry coverage at Missouri Division of Workers Compensation.
Also, as an employer with employees, you may have certain healthcare requirements you need to comply with as well. If so, you should know about the Small Business Health Care Tax Credit.
Register for a Business License and Other Necessary Permits
In your local area or city, there may be additional requirements for businesses.
Manage Payroll Record Keeping
Almost all employers are required to transmit federal payroll tax deposits electronically. Employee files should be kept for each individual worker and include their employment application as well as the following:
- Form W-4, Employee’s Withholding Allowance Certificate. Completed by the employee and used to calculate their federal income tax withholding. This form also includes necessary information such as address and Social Security number.
- Form I-9 Employment. Eligibility Verification. Completed by the employer, to verify that employees are legally permitted to work in the U.S.
Seek a Tax Professional for Assistance
As you can see from the above information, there are many steps in starting a business, some of which didn’t make the cut in this blog. But, if you seek help from an expert in entrepreneur accounting in Missouri you may avoid some headaches and problems throughout the process. Call Schultz, Wood, and Rapp P.C. for the advice and counsel you need while starting a business. With years of experience, we know how to get your business started on the right note.
