Obtain Business Licenses & Permits. Learn About Your State and Local Tax Obligations. Ask a Question Give Feedback Browse Knowledgebase Start a Business Learn About New Health Care Changes Find Opportunities Browse resource for Veterans SBA Tools Sign up for email updates from SBAReceive helpful business tips and upcoming events in your area. Privacy Policy Skip to navigation Skip to main content An Official Website of the United States Government Translate Login Connect With Us You are HereSBA.gov » Starting & Managing a Business » Starting a Business » Filing & Paying Taxes » Determine Your State Tax Obligations Starting a Business Filing & Paying Taxes article Determine Your State Tax Obligations In addition to business taxes required by the federal government, you will have to pay some state and local taxes.
Income Taxes Nearly every state levies a business or corporate income tax. Employment Taxes In addition to federal employment taxes, business owners with employees are also responsible for paying certain taxes required by the state. State and Territory Tax Resources Alabama Alaska Guam. Obtain Your Federal Business Tax ID (EIN) Register Your Fictitious or "Doing Business As" (DBA) Name. Naming your business is an important branding exercise, but if you choose to name your business as anything other than your own personal name then you’ll need to register it with the appropriate authorities. This process is known as registering your “Doing Business As” (DBA) name. What is a “Doing Business As” Name? A fictitious name (or assumed name, trade name or DBA name) is a business name that is different from your personal name, the names of your partners or the officially registered name of your LLC or corporation. It’s important to note that when you form a business, the legal name of the business defaults to the name of the person or entity that owns the business, unless you choose to rename it and register it as a DBA name.
For example, consider this scenario: John Smith sets up a painting business. Rather than operate under his own name, John instead chooses to name his business: “John Smith Painting”. Do I Need a “Doing Business As” Name? Partnerships. A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business. A partnership must file an annual information return to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it "passes through" any profits or losses to its partners.
Each partner includes his or her share of the partnership's income or loss on his or her tax return. Partners are not employees and should not be issued a Form W-2. If you are a partnership or a partner (individual) in a partnership, use the information in the charts below to help you determine some of the forms that you may be required to file. Rate the Small Business and Self-Employed Web Site. Loan Programs. Tips for Choosing Your Business Location. Choosing a business location is perhaps the most important decision a small business owner or startup will make, so it requires precise planning and research. It involves looking at demographics, assessing your supply chain, scoping the competition, staying on budget, understanding state laws and taxes, and much more. Here are some tips to help you choose the right business location.
Determine Your Needs Most businesses choose a location that provides exposure to customers. Additionally, there are less obvious factors and needs to consider, for example: Brand Image – Is the location consistent with the image you want to maintain? Evaluate Your Finances Besides determining what you can afford, you will need to be aware of other financial considerations: Hidden Costs – Very few spaces are business ready. Is the Area Business Friendly? Understanding laws and regulations imposed on businesses in a particular location is essential.
The Bottom Line Do your research. Learning Center: Find By Media Type. How to Write a Business Plan. Follow These 10 Steps to Starting a Business. Starting a business involves planning, making key financial decisions and completing a series of legal activities. These 10 easy steps can help you plan, prepare and manage your business. Click on the links to learn more. Step 1: Write a Business Plan Use these tools and resources to create a business plan. Step 2: Get Business Assistance and Training Take advantage of free training and counseling services, from preparing a business plan and securing financing, to expanding or relocating a business. Step 3: Choose a Business Location Get advice on how to select a customer-friendly location and comply with zoning laws. Step 4: Finance Your Business Find government backed loans, venture capital and research grants to help you get started. Step 5: Determine the Legal Structure of Your Business Decide which form of ownership is best for you: sole proprietorship, partnership, Limited Liability Company (LLC), corporation, S corporation, nonprofit or cooperative.
Step 7: Get a Tax Identification Number.