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I am starting my own business and need some advice.

I am in the process of starting my own business. I have my business plan finished and I am about to order my business cards and supplies. I have very low overhead/start up costs so I won't need any business loans. I know I need to get a business license through my city but what about the federal government? Do I need to fill out paperwork with them? Also, what about taxes, social security, etc? How to I find out how much I am suppose to take out and when do I send it in? Thanks in Advance!

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Asked by Anonymous at 7:07 PM on Mar. 28, 2010 in Money & Work

Answers (5)
  • If you don't know, my first suggestion would be to find a business lawyer. Dealing with the federal government is a tricky business, and they will tear you a new one if you don't remember to dot your I's and cross your T's.

    I'm currently working on a degree in Business, and I would still hire a business lawyer to make sure everything was correct.

    Answer by LokisMama at 7:10 PM on Mar. 28, 2010

  • actually its pretty simple....hiring a lawyer is a waste of money especially for a small business
    if you have employees you just need to get an EIN and thats can get it thru the IRS website
    other wise you file your taxes with your SSN

    there are two ways of paying taxes to fed govnt
    your first year you have leniency so use that to your advantage

    you can set aside a seperate account and save 15.3% of profit aside for taxes to pay next tax season, or you can make estimated payments, and you can go to a bank to set that up...thats all simple if you have more questions please elaborate

    Answer by DomoniqueWS at 7:21 PM on Mar. 28, 2010

  • and I too am working toward a business degree but I am also a tax preparer with the IRS so I know that part already

    Answer by DomoniqueWS at 7:23 PM on Mar. 28, 2010

  • we formed an llc, called the irs, and they asked us some questions, and we filled out a form, years later we re organized as an s-corporation, and our accountant did that for us. there is no reason to be terrified of the irs. they are not looking to destroy you for not knowing what you are doing. you should go to your state website and see if your business will require a state license. you may want to do a little more research before hiring an attorney or accountant. they can be expensive. our friends paid a lawyer $500 to file their llc, while we did ours for free. do some more googling, and try to connect with people that have already started businesses like yours.
    good luck to you!!!

    Answer by happy2bmom25 at 7:27 PM on Mar. 28, 2010

  • Start by getting a federal tax id number, also known as an FEIN;

    You will need to file some sort of paperwork with the Secretary of State's office.

    Good luck!


    Answer by rkoloms at 6:22 AM on Mar. 29, 2010

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