Filing New Business Registrations

When you start a new business

You need to make sure you comply with the numerous tax and information filing requirements imposed by the various governmental agencies. Failure to take proper procedures, meet a filing deadline or overlook an important registration can result in penalty assessments. There are usually several forms required to be filed at the federal, state and local levels. The number of forms required will depend on such factors as whether you will have employees, collect sales tax, require special permits and licenses for your industry, etc. We discuss only the most basic ones here. If you are starting a business or changing some aspect of your existing business, we strongly suggest you contact your CPA so as not to overlook an important notification filing.

Federal registrations

Generally, most tax forms filed with the Internal Revenue Service will require the use of an Employer Identification Number or EIN. You can obtain this number by filing Form SS-4 with the IRS. If you need an EIN immediately, the IRS will issue you one over the phone but you must still complete and mail the Form SS-4 in order to validate the EIN number they assign to you. Generally, to avoid confusion, it is best to file for your EIN number as soon as possible.

If you will have employees, this information is also reported on the Form SS-4. Doing so initiates the mailing of federal payroll reporting forms automatically.

State registrations

Regulations vary from state to state. Pennsylvania, for example, uses a multi-registration Form PA-100. Relevant sections of the form are completed to acquire state identification numbers, provide employee tax withholding and unemployment experience information, register to collect and submit sales tax, and obtain numerous special purpose licenses, etc.

Local registrations

These may differ widely depending on the municipality in which you will conduct business. Generally, to operate a business you must obtain a business license in both the city and county you are located. Applications and information can typically be obtained at the city hall and county court house where your business is located. Depending on the entity form of your business, various components of income can be subject to local tax as well as business privilege tax.

As stated at the onset, although some registration filings are almost universal to all businesses, others are not and depend on numerous factors such as employees, your industry, your locality, etc. Therefore, professional counsel is strongly recommended during this phase of a new business start up to insure that nothing is overlooked.

(The above discussion is intended to be only an overview of this topic. You should consult with your accountant before implementing any of the above procedures.)