Now that you have used Attorneys Corporation Service, Inc. to assist you in starting your client’s new LLC or corporation, it’s time to take the next steps: getting your client compliant with all federal and state laws. As any licensed attorney or CPA knows, failure to do so can result in legal trouble — an issue no party wants to face.
Besides filing your client’s annual returns, there are a number of other requirements that you must take care of on behalf of your client. Read on for a list of some of the necessary steps you need to take when starting your client’s new business:
Steps to starting a new business
- Sales and Use Tax. Will your client be selling goods or services? Will they be subject to the relevant state’s tax? Check with your Secretary of State to see if your client will be responsible for any taxes and / or if he qualifies for an exemption.
- Employee v. Independent Contractor. Help your client decide how he will classify his workers as there is generally a big tax difference between the two. The problem with misclassifying individuals is that the company — your client –may ultimately be liable to pay the employment taxes for the misclassified worker.
- Employee Withholdings. If you client’s new business will have employees, make sure that they fill out a state and federal Form W-4. This will assist you and your client in determining how much your client needs to withhold from each employee’s paycheck for state and federal income taxes, Social Security, and Medicare taxes. The IRS has stringent requirements for the filings and deposits of withholdings.
- Estimated Tax Payments. If your clients receives income from his business that is not subject to withholding, he may be required to pay estimated income tax at both the federal and state level. As many attorneys and CPAs know, this typically applies to self-employed individuals or individuals that receive large amounts of interest, dividends, capital gains, rents, royalties, or business income.
A customized corporate kit or LLC kit will allow you to keep your notes and important documents in one secure, professional binder. Talk to us to learn more about our quality kits.
Attorneys Corporation Services, Inc., can assist you with your client’s business formation needs. From LLC formation to incorporation services, we provide fast, reliable, economical services and quality products; such as customizedCorporate Kits, LLC Kits, Estate Plan Organizers and Corporate Supplies. Call us at 800.462.5487 or check us out online at www.AttorneysCorpService.com.