America has had and will always have people with an entrepreneurial spirit.
The dream of being your own boss is part of most working Americans. How to get
started is a challenge. One of the first business decisions that the new in
business professional should make is what form of entity should run the business
- sole proprietor, partnership, or corporation. Each type of business entity has
its advantages and disadvantages.
The type of the small business operation will not only help determine the best business entity to operate the small business, but also what records will need to be kept to comply with different levels of government. A small retail business most likely will be required to collect city and county sales tax and make a reporting to the appropriate agency. A host of requirements come with having employees, i.e. monthly, quarterly, and annual reports have to be filed with the city, Oklahoma Tax Commission and IRS. Failure to properly make required reports could mean loss of discounts, and penalties and interest. Excellent Tulsa accounting services are of utmost importance.
Hiring one employee will require the following forms and/or reports: W-4, I-9, 941, 940, monthly Oklahoma Tax Withheld report, quarterly Oklahoma employment security report and annual W-2 and W-3.
Contracting with a general contractor may require the filing of a Federal 1099 form. By the way, the IRS (not you) have guidelines to determine whether someone is an employee or independent contractor.
Some people you do business with may require an I-9 for you to operate as an unincorporated business or an W-9 if incorporated.
In addition, it is imperative that you keep track of your money and have adequate internal controls over anyone that has access to cash. This includes keeping regular bank reconciliation.
Glass Tax Service is pleased to be your Tulsa Tax Service and provider of Tulsa Accounting services. We look forward to discussing your accounting needs--contact us today.