Are You Familiar With The Government Agencies As A Business Owner?

Get Familiar With The Main Government Agencies!

In order to run your business, knowing the government agencies will help!

For submitting federal income tax payments & obtaining Employer Identification Number (EIN) for your business, you will go to the Internal Revenue Service( IRS).

For submitting state income tax payments for a business registered in California, you will be required to go to the Franchise Tax Board (FTB).

Also, there are separate government agencies for submitting payroll taxes & sales taxes. The Employment Development Department (EDD) is in charge of collecting payroll taxes. The California Department of Tax and Fee Administration (CDTFA) is in charge of collecting sales taxes. And for getting the business licenses & other related permits, you must go to your Local City Offices.

There are several laws to consider when starting a business, no matter what type of operation you plan to run.  These include but not limited to the following:

  • Taxes
  • Labor
  • Employment
  • Antitrust
  • Advertising
  • Environmental regulations
  • Privacy
  • Licenses

The IRS requires businesses to pay an assortment of federal taxes. Your business entity, such as a sole proprietorship, limited liability company or corporation, determines which taxes you have to pay and how you pay them. However, there are a few general taxes that all business owners can anticipate paying, regardless of their business structure:

  • Income tax: All businesses except partnerships have to file an annual income tax return. Businesses that do not file a separate tax return report income on the personal tax returns of their owners or shareholders.
  • Estimated tax: If you expect to owe tax of $1,000 or more — $500 for corporations — on your annual return, you’ll need to make payments throughout the year as you receive income.
  • Self-employment tax: Your self-employment tax contributes to your Social Security and Medicare benefits.
  • Employment tax: If your business has employees, you must pay employment taxes, which include your workers’ Social Security and Medicare taxes, federal income tax withholding and federal unemployment tax.
  • Excise tax: You may be required to file excise tax forms if you manufacture or sell certain products, such as motor fuel, or use certain kinds of equipment, like trucks that travel on public highways.
STATE TAXES

Your state will impose its own taxes. Local property taxes to your city or county may also apply if your business owns real property such as vehicles, land or buildings.

Don’t be overwhelmed by the government agencies. Working with an experienced business lawyer will help you. Do you need any assistance with your business? Contact The Sterling Firm!

Government Agencies

Government Agencies